KOSÉ

KOSÉ Corporation (Headquarters: Chuo-ku, Tokyo; President: Kazutoshi Kobayashi) has invested in Foxtale Consumer Pvt. Ltd. (Headquarters: Mumbai, India; CEO: Romita Mazumdar; “Foxtale”), a company that develops the skincare brand “foxtale” centered on D2C*1, to strengthen business in the Indian market in the Global South, a key area of focus, and also concluded a strategic partnership agreement with the company. Going forward, KOSÉ will provide support for the formulation and product development of foxtale based on its knowledge of R&D and product development, while also gaining knowledge of marketing in the Indian market from Foxtale, thereby further strengthening KOSÉ’s business in India and accelerating its development.
*1 Direct to Consumer

Currently, under the medium-term strategy of its medium- to long-term vision “Vision for Lifelong Beauty Partner―Milestone 2030*2,” KOSÉ aims to “Shift to locally-driven marketing and manufacturing” to achieve the business growth on a global scale by optimizing its operations in each region based on the approach of “no longer doing everything on its own.” KOSÉ will strengthen its global business growth by collaborating with external partners and utilizing external assets instead of sticking to its own resources.
*2 https://corp.kose.co.jp/ja/info/mid/

Foxtale is a cosmetics company centered on D2C that was founded in Mumbai, India, by Romita Mazumdar in 2021. The company has achieved remarkable growth, attracting attention as a brand that stands out in India’s competitive premium mass cosmetics market, by developing and selling new products through repeated trial production while listening to consumer feedback, with an emphasis on effectiveness and safety.

KOSÉ has been cultivating the market through sales in India, establishing a local subsidiary, KOSÉ Corporation India Pvt. Ltd., in 2013 and launching an exclusive local skincare brand, “Spawake”, in 2014 that was developed to meet the needs of the Indian market. By investing in the rapidly growing Foxtale in India, KOSÉ aims to contribute to the growth of Foxtale while also utilizing Foxtale’s marketing knowledge and expertise through a strategic partnership to further improve KOSÉ’s presence in the Indian market. Going forward, KOSÉ explores joint businesses with the company through the establishment of a joint venture.

India is one of the world’s fastest growing countries and boasts the world’s largest population. The size of the beauty and personal care market is approximately 2.5 trillion yen*3, and it is expected to continue to grow going forward. High growth rates are expected for skin care and makeup cosmetics in particular. The market for cosmetics in the middle and high price ranges is currently thriving, and there is an increase in consumers seeking high-value-added products that meet their needs, such as those that emphasize the ingredients and effects. In addition, e-commerce for cosmetics has also been growing significantly in recent years in line with the expansion of the digital environment.
Through this agreement, KOSÉ will further advance its strategy for the Indian market while also expanding the presence of the KOSÉ Group in the Global South and enhancing its corporate value.
*3 Source: Euromonitor （Retail Value RSP, Fixed 2023 Exchange Rates, Constant 2023 Prices）, USD 1 = JPY 150

Details of Investment
◇Acquisition of 10% of Foxtale’s shares

Details of Strategic Partnership
◇ Provide support for foxtale product development and formulation based on KOSÉ’s R&D and product development expertise
◇ Receive support from Foxtale’s founder, brand team, digital marketing team, offline sales team, and operations team to further expand sales of Spawake, KOSÉ’s skincare brand in India
◇ Explore joint businesses through the establishment of a joint venture

Comments by Kazutoshi Kobayashi, President & CEO of KOSÉ Corporation

We are very happy to have concluded a capital and strategic partnership with fast-growing Foxtale in the premium mass skin care market on the occasion of the 10th anniversary of our entry into the Indian market. Under the leadership of the highly motivated and ambitious Founder and CEO, Ms. Romita Mazumdar, Foxtale’s rapid growth is driven by product development that places importance on dialogue with customers, cutting-edge digital marketing, and strong sales capabilities that are closely aligned with business partners. These are all very attractive factors for us as we move forward in taking on the Indian market. In addition, both companies share many commonalities, such as a consistently thorough customer-centric orientation and a willingness to invest in human resources, giving us confidence that we can take on new challenges together by combining the strengths of both companies toward a shared vision. Through this partnership, we will take a major step forward into the next decade as we aim to establish a greater presence in the Indian market and expand our business.

Comments by Romita Mazumdar, Founder & CEO of Foxtale

We are very pleased to be able to form a long-term partnership with KOSÉ through this capital and strategic partnership. The Indian cosmetics market is one of the fastest growing markets in the world, and we are honored to be able to contribute to Indian consumers through high-quality products. I am confident that this partnership will enable us to quickly gain a large share of the Indian market by combining KOSÉ’s commitment to a customer-centric orientation and its extensive global experience in the cosmetics field with Foxtale’s expertise in the local market. I am also very inspired by KOSÉ President, Mr. Kazutoshi Kobayashi, and I believe that his leadership, spirit of taking on challenges, and integrity will guide our partnership. Going forward, we will promote our business to meet the needs of Indian consumers and enhance the corporate value of both companies by establishing unique positions through synergies that leverage the strengths of KOSÉ and Foxtale.

Foxtale
Name: 　　　　　　　　　　　　　　　Foxtale Consumer Private Limited
Location: 　　　　　　　　　　　　　   Mumbai, India
Title and name of representative: 　　　Romita Mazumdar, Founder & CEO
Established: 　　　　　　　　　　　　 May 5, 2021
Business: 　　　　　　　　　　　　　  Planning, development, and sales of cosmetics
Website: 　　　　　　　　　　　　　　https://foxtale.in

“foxtale” Brand
“foxtale” is an Indian cosmetics brand that focuses on skincare products development through repeated prototypes based on consumer experiences and feedback. As a result, effective skincare items have been developed that are tailored to the skin concerns of Indian consumers and reliably meet their consumers’ needs. It started cosmetics business in January 2022 and has quickly grown into a skincare brand with a strong presence in India’s D2C sector due to its ability to execute quickly on the ground.
The niacinamide-based serum is one of the flagship foxtale products, which has grown most rapidly since its launch. In addition, the moisturizer has received high praise on Indian social networking sites for its rich blend of active ingredients such as vitamin C and ceramide, as well as its comfort of use. Other products such as cleansers, sunscreens, and packs also boast high customer loyalty and have been well received.

KOSÉ India
Name: 　　　　　　　KOSÉ Corporation India Pvt. Ltd.
Headquarters: 　　　  318 & 319, 3rd Floor, MGF Metropolis Mall, MG Road, Gurgaon 122002,
Haryana, INDIA
Established: 　　　　  October 2013
Representative: 　　　Tsutomu Yoshioka
Capital: 　　　　　　  INR 1,300 million
Business: 　　　　　   Planning and sales of cosmetics
Website: 　　　　　　https://www.koseindia.com/