THE WHAT? Kao is mulling the sale of several non-core cosmetics brands in a bid to return to profit. The Japanese owner of Molton Brown is forecasting a further drop in net profit for 2023.
THE DETAILS Nikkei Asia reports that the Biore manufacturer could sell off up to a third of its cosmetics and personal care portfolio – with 10 brands earmarked for disposal.
THE WHY? Kao is hoping to shift focus to a set number of brands which it has identified as having further potential for international expansion, among them Molton Brown.
President and CEO, Yoshihiro Hasebe told Nikkei Asia, “We focused too heavily on the Japanese market and China-related demand as well as on boosting our sales and market share. We were slow to shift our strategy, which, all together, highlighted Kao’s weaknesses.”