Group 1 - Major Japanese cosmetics companies are facing significant challenges, with varying performance across different brands and markets [2][7][30] - Kao Corporation reported a remarkable increase in operating profit by nearly 108%, while other companies like Kose and I-ne experienced declines of 17.7% and 17.0% respectively [2][7] - Several brands under major Japanese cosmetics companies are struggling, with notable declines such as a 57% drop for the brand "Zui Xiang" and decreases for brands like Anessa, Shiseido, Decorte, and POLA [2][10] Group 2 - The Japanese cosmetics market is facing challenges, with a 3.4% decline in the overall market and specific brands like Kose's Sekkisei down by 0.5% [2][30] - The performance in the Chinese market is dragging down overall sales, with many companies planning to withdraw, liquidate, or close stores by 2025 [2][28] - Kao is the only company among the five major Japanese cosmetics groups to show growth across all markets, with increases of 2.4% in the Americas, 3.0% in Europe, and 2.3% overseas [2][30] Group 3 - Shiseido's operating profit turned positive, but net sales showed only a slight increase of 0.82%, indicating ongoing challenges [9][30] - Kose's net sales increased by 0.9%, but its operating profit fell by 17.7%, highlighting the difficulties faced by the company [9][30] - POLA ORBIS reported a decline in net sales by 1.4%, primarily due to reduced sales from its core POLA brand [21][23] Group 4 - I-ne's skincare segment saw a significant increase of 432%, while its hair care segment declined by 10.8% [27][28] - Kao's beauty-related sales for the first half of 2025 reached 211.5 billion yen (approximately 10.32 billion RMB) and 118.5 billion yen (approximately 5.78 billion RMB) for cosmetics, with both segments showing profit growth [13][15] - Kose's high-end brand sales showed mixed results, with Sekkisei growing by 11.4% while other core brands like Decorte faced declines [16][18] Group 5 - The overall performance of Japanese cosmetics companies indicates a need for strategic adjustments, especially in light of economic downturns and increased competition in the Chinese market [37][40] - Companies are exploring growth opportunities in Southeast Asia, but face challenges from numerous competitors in these emerging markets [47][28] - The Japanese domestic market also presents challenges, with brands like Zui Xiang ceasing operations and Kose's Sekkisei facing a slight decline [42][45]

Group 1 - Japanese cosmetics companies are experiencing collective anxiety in the Chinese market, with Shiseido's executives acknowledging a decline in brand equity [2] - The Japanese beauty industry has been a significant player in China for over 40 years, but recent years have seen challenges due to the rise of local brands and external pressures from Western competitors [2][3] - In the first half of 2025, major Japanese beauty companies reported declines in their Chinese operations, with Shiseido's sales dropping by 10%, Kosé's by 7.3%, and POLA's net profit plummeting by 38% [2][3] Group 2 - The performance of Japanese beauty companies reflects a broader restructuring of the beauty industry, highlighting the need for multinational companies to adapt to the changing market dynamics in China [3] - Despite global profit growth, the persistent weakness in the Chinese market is a common challenge for these companies, indicating a significant shift in the competitive landscape [3][16] Group 3 - Shiseido's overall sales in the first half of 2025 were 469.83 billion yen (approximately 22.86 billion RMB), a decrease of 7.6%, while core operating profit increased by 21.3% to 23.37 billion yen (approximately 1.14 billion RMB) [7][10] - The Chinese and travel retail segment for Shiseido saw sales of 173.94 billion yen (approximately 8.46 billion RMB), down 12.4%, but it contributed nearly 80% of the group's core profit [10] Group 4 - Kao Corporation reported a global sales increase of 2.7% to 809 billion yen (approximately 39.3 billion RMB) in the first half of 2025, with operating profit rising by 19.9% to 69.5 billion yen (approximately 3.3 billion RMB) [10][13] - Kosé's sales were 160.5 billion yen (approximately 7.8 billion RMB), a slight increase of 0.9%, but operating profit fell by 17.7% to 11.3 billion yen (approximately 0.55 billion RMB) [15] Group 5 - POLA ORBIS Group's total revenue was 832.53 billion yen (approximately 38.3 billion RMB), a slight decrease of 0.7%, with net profit dropping by 38.1% to 4.64 billion yen (approximately 0.23 billion RMB) [16] - The performance of these companies illustrates a clear divide between global profitability and challenges in the Chinese market, with POLA facing additional difficulties due to delayed strategic adjustments [16] Group 6 - Japanese beauty companies are optimistic about the long-term potential of the Chinese market and are accelerating transformations to navigate current challenges [17] - Strategies include focusing on high-end products, channel innovation, and localization to better respond to the evolving consumer landscape in China [17][19]