KEYNOTE INTERVIEW

Exclusive, Experience and Environment

Introduction: In this wide-ranging interview, KOSÉ Travel Retail President & CEO Hiroto Kitaki (pictured) outlines how the Group’s ‘Lifelong Beauty Partner’ philosophy is being translated into action across airports, duty free and hospitality. Central to the strategy are the 3E pillars – Exclusive, Experience and Environment – designed to shift the channel beyond price-led competition towards differentiated products, immersive activations and meaningful sustainability initiatives.

Kitaki positions travel retail as KOSÉ’s highest-priority growth engine, with overseas sales targeted to exceed 50% of total revenue by 2030. Landmark anniversary pop-ups for DECORTÉ and SEKKISEI, the global Liposome campaign, and sustainability-led ‘SAVE the BLUE’ initiative underline the scale of ambition. At the same time, a newly established hotel amenity division is set to to transform airports and resorts into touchpoints for what the company calls “ultimate beauty entertainment”.

As KOSÉ enters its ninth decade, the message to the industry is clear – think as a traveller, co-create with partners and deliver experiences that endure far beyond the point of purchase.

KOSÉ Travel Retail President & CEO Hiroto Kitaki

“With deep respect for our legacy and a strong sense of responsibility for the future, we are determined to take a bold and deliberate step forward toward the next century”

– KOSÉ Travel Retail President & CEO Hiroto Kitaki

Play time: DECORTÉ brings gamification to San Francisco International Airport

The Moodie Davitt Report: KOSÉ is marking its 80th anniversary in 2026, a milestone for the company. What does this anniversary represent for KOSÉ today, both in Japan and on the global stage?

Hiroto Kitaki: For us, 2026 is far more than a milestone in our history.

It represents a pivotal turning point, one built upon the passion for beauty we have cultivated over the past 80 years and as we enter the next chapter.

Grounded in the exceptional quality and trust we have established in Japan, we are now accelerating our transformation into a truly global company with a strong and distinctive presence worldwide, guided by our mid- to long-term vision, Milestone 2030.

Through this journey, we remain committed to delivering value that transcends borders while staying true to who we are.

As we celebrate our 80th anniversary, this year also serves as a powerful opportunity to reaffirm and communicate our core philosophy to the world: to create a culture and values embodying a distinctive beauty through a sophisticated fusion of sensuousness and intelligence.

With deep respect for our legacy and a strong sense of responsibility for the future, we are determined to take a bold and deliberate step forward toward the next century.

KOSÉ often speaks about its mission of being a ‘Lifelong Beauty Partner’. How is this purpose being translated into strategy and innovation within the travel retail channel?

Our vision is: To make every encounter during travel the starting point of lifelong beauty by delivering the finest experiences to the world as a globally radiant Lifelong Beauty Partner.

In fiscal year 2026 we will bring this into action, guided by the 3E pillars: Exclusive, Experience and Environment.

Exclusive is about providing unique value found only in travel retail and amenities.
Experience is about creating unforgettable customer experiences through bespoke services and events.
Environment is for advancing sustainable business activities and addressing SDGs.

Through these pillars, we will foster enduring relationships that go far beyond one-time purchases, steadily expanding a community of lifelong KOSÉ supporters across markets worldwide.

In 2024, SEKKISEI and Wangfujing Duty Free teamed up for this vibrant, ocean-themed pop-up promoting the SAVE the BLUE campaign

The DECORTÉ pop-up in Okinawa with DFS Group combines exclusive merchandise, experiential elements and beauty services

How important is travel retail to KOSÉ’s medium- to long-term global ambitions, particularly as the Group looks toward its Milestone 2030 roadmap?

KOSÉ Travel Retail represents KOSÉ’s highest-priority growth engine within our global strategy.

Under our Milestone 2030 vision, we have set an ambitious goal to significantly enhance our international presence, aiming for overseas sales to account for more than 50% of total revenue by 2030.

Travel retail business plays a critical role in driving this goal forward. Airports and duty-free stores, where customers from diverse nationalities converge, serve as a powerful showcase for expanding brand awareness across regions and cultivating new loyal customers.

Looking ahead, we are positioning travel retail at the heart of our global strategy, expanding beyond Japan, China and Asia to the Americas, Europe, the Global South and the Middle East, with KOSÉ Travel Retail leading the way in realising our long-term ambitions.

KOSÉ is celebrating the 80th anniversary with a mega pop-up in travel retail. Can you tell us more about this?

We are planning a landmark large-scale promotion across major international airports, centred on our flagship brands, DECORTÉ and SEKKISEI. This initiative represents one of the most emblematic expressions of our overarching business theme for the year, 3E: Exclusive, Experience and Environment.

For DECORTÉ, we aim to roll out the Liposome Global Campaign 2026 from spring through summer, covering global travel retail, including the Korean duty-free market. By placing our hero product, the Liposome serum, at the heart of the campaign, we seek to maximise brand presence through distinctive and original creative expressions.

For SEKKISEI, we are planning to launch the SAVE the BLUE Campaign 2026 from summer through autumn. In resort destinations such as Okinawa and Hainan Island, we will further strengthen sustainability-driven communications through close collaboration not only between our travel retail and amenity businesses, but also with local communities.

Through DECORTÉ and SEKKISEI, we aspire to create the ‘ultimate beauty entertainment’ that will leave a lasting impression on our customers’ travel memories – together with our valued partner companies.

SEKKISEI engaged guests at Hotel Nikko Alivila Yomitan Resort Okinawa and Ryukyu Hotel & Resort Nashiro Beach in 2025 as part of its SAVE the BLUE campaign

In one of the first major DECORTÉ campaigns in Hainan since the creation of KOSÉ Travel Retail, the brand took over the giant 3D screen at the Hainan Tourism Duty Free Shopping Complex

KOSÉ has recently launched a hotel amenity business division. What prompted the decision to expand into this space, and how does it align with the Group’s broader strategy?

A customer’s journey begins even before arriving at the airport, continues throughout their stay, and extends well beyond their return home. Our entry into the hotel amenity business represents a strategic move to support beauty at every stage of the customer journey. It also represents our ambition to transform each travel encounter into the starting point of a lifelong relationship with beauty.

Our objective is to seamlessly connect the pre-trip, in-trip and post-trip experiences through our brands. By creating meaningful touchpoints and trial opportunities in the relaxed environment of hotels through premium amenities, we enhance customer satisfaction and deepen brand engagement. We are building a virtuous cycle in which these memorable experiences naturally lead to brand-designated purchases at duty-free stores on the return journey, as well as to subsequent purchasing behaviour beyond travel.

As airports evolve from mere transit points into destinations for well-being moments, this seamless brand engagement that connects hotels and duty-free retail stands as our distinctive strength.

At a time when global tourism is experiencing strong momentum, we position hotels as brand showrooms we can proudly present to the world. Beginning in Japan and expanding worldwide, we aim to make this channel a key driver in growing our community of loyal KOSÉ customers.

In 2022, DECORTÉ partnered with TripurX-owned Chinese content platform Globuy for the O2O ‘Globuy Reviewers’ campaign at the Rosewood Sanya Hotel, marking the beginnings of its hotel amenities venture

How do you see the hospitality channel complementing travel retail, particularly as airports increasingly position themselves as lifestyle and wellbeing destinations?

As airports evolve from transit hubs into wellbeing and lifestyle destinations, the integration of our amenity business and travel retail business stands at the very core of our strategy.

Hotel amenities deliver a deeply personal interaction, allowing customers, at their most relaxed and with bare skin, to truly feel the quality of our products. The profound impressions formed during a hotel stay naturally lead to brand-designated purchases at the airport on the return journey.

In other words, our greatest differentiator lies in our ability to envelop the entire journey – from its beginning at the hotel to its conclusion at airport shopping – in a single, coherent story of KOSÉ beauty, a distinctive strength that sets us apart.

Moreover, what we value most is the human warmth and professional expertise that can never be replaced by digital technology or artificial intelligence. The trust cultivated through premium hotel experiences is elevated into an enduring, lifelong bond when our beauty consultants at airport counters respond with genuine care to each individual’s needs, transforming our relationship into that of a true lifelong partner.

Through amenities, we dramatically expand our points of connection with travellers around the world, and through travel retail we turn those brand engagements into lasting conviction. It is this virtuous cycle that allows us to transform every stage of the journey into a meaningful, well-being-driven moment; one that empowers customers to rediscover their inner beauty.

An activation at Beijing Capital International Airport last year highlighted Liposome via a high-profile OOH and digital media campaign throughout the travel hub

What are the biggest trends currently shaping the beauty category in global travel retail today?

Today, the most significant trend shaping consumer behaviour is a shift away from the mere ownership of ‘products’ toward moments and values that directly enhance one’s personal wellbeing. Environmental responsibility, often referred to as clean beauty, is no longer optional; it is a given.

Beyond that foundation, consumers increasingly place value on exceptional experiences that can only be found in a specific place. Particularly in China and Asia Pacific travel retail, it is an undeniable reality that price remains one of the most influential factors.

However, we believe that transcending the conventional equation of ‘duty free = low price’ and delivering more meaningful value is the true mission for both brands and retailers.

As consumers seek fulfilment that goes beyond ownership, we are creating new value, free from price-driven competition, by bringing our 3E pillars (Exclusive, Experience and Environment) to life. By integrating scientific expertise grounded in advanced skin science with a deep sense of empathy, we will transform time spent travelling into an irreplaceable moment of rediscovering one’s inner radiance.

The future vision that travel retail must aspire to is: to deliver meaningful brand engagement, which is not swept away by the tide of price competition, but instead remains in customers’ hearts for a lifetime.

At DFS Okinawa, event-linked gifts – from original tote bags to deluxe skincare minis – connected hotel activations to high-value downtown retail as part of the 17th annual SEKKISEI SAVE the BLUE project

How is KOSÉ embracing new digital technologies to enhance the beauty shopping experience in travel retail?

We view digital technology not merely as a tool for efficiency, but as a bridge that maximises both convenience and experiential value unique to travel retail.

Specifically, through close collaboration with our retail partners, we are strengthening support for online shopping – including pre-order services – to create an environment in which customers can enjoy a stress-free shopping journey even within the limited time before departure or after arrival.

Digital technology is a powerful tool for making shopping during the extraordinary time of travel smarter, more seamless and more comfortable. At the same time, empowered by strong partnerships with retailers, we are introducing and actively leveraging travel retail-specific CRM capabilities.

This enables us to go beyond one-time encounters at travel destinations and to build enduring relationships as a lifelong beauty partner, by delivering personalised communications and thoughtful follow-up even after customers return home. Yet at the core of our digital strategy lies a firm belief: the more digital solutions evolve, the more the value of face-to-face service by our staff is elevated.

We aim to provide a smooth and efficient online purchasing journey. At the same time, our expert beauty consultants engage directly with customers and respond with empathy to their individual concerns in-store. This creates emotional impact and added value; experiences that digital alone can never replicate.

As KOSÉ enters its ninth decade, what are your key priorities for the travel retail business over the next five years?

The keyword that will guide our focus and relentless pursuit over the next five years is newness. To achieve this, we will concentrate on three key areas.

New Markets: While maintaining our strong positions in Japan, China and Asia, we will expand our presence in untapped regions such as the Americas, Europe, the Global South and the Middle East. By restructuring our global portfolio, we aim to establish a strong and enduring brand presence worldwide.

New Touchpoints: Through close integration with our amenity business, we will approach the next generation of customers via the new entry point of the hotel experience. By creating touchpoints throughout every stage of travel, we will continue to cultivate a new wave of KOSÉ enthusiasts.

New Value: By bringing the 3E pillars (Exclusive, Experience, Environment) to life, we will challenge the successes of yesterday and set new standards for the future.

These endeavours cannot be achieved alone. Meaningful co-creative dialogue with our long-standing retail partners, as well as with new partners who will help pave the way forward, will serve as the engine of our progress.

By turning our collective insights and differences into strengths, we aim to become the one and only partner for travellers worldwide. Together, we look forward to walking confidently into the next five years, hand in hand with our partners.

“Meaningful co-creative dialogue with our long-standing retail partners, as well as with new partners who will help pave the way forward, will serve as the engine of our progress.”