The Japanese beauty major announced that it had acquired a 10% stake in Indian skin care company Foxtale on January 15.
“We are very pleased to have concluded a capital and strategic alliance with Foxtail, a company experiencing remarkable growth in the premium mass skincare market, in the memorable 10th anniversary year of our entry into India,” said Kazutoshi Kobayashi, president and CEO of Kosé.
In December, CosmeticsDesign-Asia reported that Kosé was mulling over acquisition opportunities in India and ASEAN to fast-track its expansion in those markets.
The company established a local subsidiary in 2013 and launched Spawake, a skin care brand developed specifically for the Indian market.
The investment in Foxtale signals a major move to drive growth and expand its presence in India, which Kosé considers a “priority” market.
“With this alliance, we will take a big step toward the next 10 years and aim to further establish our presence and expand our business in the Indian market,” said Kobayashi.
Market support
India is one of today’s fastest-growing markets, offering immense opportunities, but its complexity and unique challenges make it a difficult landscape to navigate.
The partnership with Kosé will provide valuable support in navigating those complexities.
Kobayashi underscored Foxtale’s success since it launched in 2022, noting its rapid growth, fuelled by consumer-focused product development and advanced digital marketing.
“These are very attractive factors for us to conquer the Indian market,” said Kobayashi.
In addition to supporting the growth of Foxtale with its R&D and product development expertise, Kosé will tap into Foxtale’s understanding of the local market to expand Spawake.
“Going forward, we will establish a unique position through synergy between the strengths of Kosé and Foxtale and will promote our business to meet the needs of Indian consumers and increase the corporate value of both companies,” said Romita Mazumdar, founder and CEO of Foxtale.
New strategy
Kosé regards India as a key market for its medium- to long-term growth.
Last year, Kobayashi said the firm would “place the highest priority on capturing the global south market” as it shifts its reliance away from China and travel retail.
China and overseas duty-free markets used to contribute approximately 25% of total sales. However, this percentage has declined significantly over the past few years and currently stands at around 15%.
Furthermore, the company outlined how it could potentially move its operations in the global south to optimise cost, comply with local regulations and improve market penetration.
