Bay Bridge Project to Provide Comprehensive Support for Cosmetics Manufacturers' Global Expansion, Aiming for 1 Billion Yen in First-Year Sales

Overview of the New Project Bay Cosmetics Co., Ltd. will launch the 'Bay Bridge Project' in June 2026, a program providing comprehensive, end-to-end support for cosmetics manufacturers looking to expand overseas, ranging from manufacturing to local distribution channel development. Starting with Taiwan, where pilot tests have already been completed, the project will expand to North America and Southeast Asia, aiming to promote J-Beauty worldwide.

Background: Challenges for Japanese Cosmetics Brands Japanese cosmetics net exports peaked at approximately 790 billion yen in 2021, declining by about 34% to the 520 billion yen level in 2024. During the same period, South Korea doubled its export value. Despite global demand for 'Japanese quality,' Japanese brands are losing ground to competitors.

### Lack of Resources and Knowledge Most cosmetics manufacturers struggle to overcome five major hurdles on their own: regulatory compliance, reformulating products for overseas standards, logistics and customs, localized marketing, and securing shelf space at local retailers. Few companies possess the necessary knowledge to execute these strategies effectively.

### Rise of Korean and Chinese Competitors South Korea treats cosmetics exports as a national policy, 'exporting' its entire sales strategy, including social media marketing and influencer collaborations. Chinese brands are also rapidly capturing the Southeast Asian market through massive financial backing and digital marketing tactics such as TikTok and live commerce.

Potential of Global Expansion Expanding overseas is more than just increasing sales; it is a turning point to elevate a brand to the next level. Beyond the massive potential markets—700 million in ASEAN and 600 million in North America—there is the 'reverse-flow effect,' where overseas brand recognition drives direct purchases by foreign tourists in Japan.

Bay Bridge Project Support Areas By eliminating the inefficiencies caused by the traditional fragmented model—such as ambiguous responsibility and slow decision-making—the project provides: - Securing local shelf space: Negotiating with retail chains, listing on e-commerce platforms, and closing distributor contracts. - Sales promotion design: Planning and executing marketing tailored to local consumers.