Kose Corporation, a Japanese multinational personal care company, examined the performance of its US subsidiary Tarte Cosmetics at its fiscal year 2023 financial results briefing and presented its projected sales growth plan for fiscal year 2024.
Tart celebrating its 25th anniversarythIt’s been 10 years since the company became a subsidiary of Kose Co., Ltd., and sales have quadrupled since the acquisition.“The company has become a company that greatly contributes to the group’s performance,” said Kose Co., Ltd.’s representative director. President and CEO Kazutoshi Kobayashi said.
Focus on marketing and brand collection
Kobayashi said that Kose will continue to expand its business in North America, Europe, the Middle East, and Asia with the aim of achieving further sales growth.
This includes continuing to “actively pursue the development of new channels” for product promotion, such as Tarte Cosmetics’ TikTok store, which “officially opens in September 2023,” and “promoting products within the app.” “Providing live streaming and user-submitted video links for purchase.” ,” he said. Kobayashi explained that the U.S. Tik Tok store “is expected to continue seeing sales growth due to a smooth purchase process and enhanced social networking features.”
Regarding the brand’s product lineup, Kose Co., Ltd. will continue to maintain Tarte Cosmetics’ “No. 1 market share in the North American concealer category” next fiscal year, while also focusing on lipstick, which has grown the most in 2023, and mascara, which is its main product. It’s a thought. ” Kobayashi shared. He said lip products “have become Cosmetics’ second-biggest category behind concealers,” and mascara has become its third priority “with the goal of growing more loyal customers.” He said that
Tarte Cosmetics 2024 sales plan
According to Kobayashi, Tarte Cosmetics’ sales growth rate in 2023 was only slightly lower than the 15% increase in sales in the U.S. prestige makeup market. However, he said that last year, “Tart’s growth rate was the highest among the top 10 brands in this category,” and that “Tart was ranked third in the U.S. prestige makeup market, with product shipments and stores increasing.” “Sales reached an all-time high.” ”
In 2024, he said, “Competition will intensify due to the emergence of new brands, but I believe Tart will maintain its top position.” Kose’s sales plan for fiscal 2024 is for a 3% decline, but the company says that “the 3% sales reduction plan for Tart is a yen-based plan” and that “we are planning for 4% growth on a local currency basis.” “The dollar-yen market is expected to trend toward a stronger yen,” Kobayashi said.
The plan states that “the negative impact of high interest rates in 2023; [which] “Although the economy is likely to slow, the labor market and consumer spending are expected to remain strong,” he reported. Kose also predicts that “a recession will be avoided and the recovery will be gradual.”
He said, “Even though there are concerns about the possibility of a slowdown in U.S. economic growth, we believe this is a solid sales plan,” and “the profitability plan is a goal to prevent a decline from the 2023 level.” Stated.
Kobayashi also said that Kose Corporation is currently implementing temporary maintenance work that will reduce Tart’s profitability in 2024, as “maintenance work in some key sales areas was completed ahead of schedule in the fourth quarter of 2023.” It has been made clear that no major factors have been anticipated.
