THE WHAT?  Oasis Management, a Hong Kong-based activist investor, is launching a campaign against Japanese cosmetics giant Kao Corp, urging it to refine its brand portfolio and enhance marketing efforts. Oasis believes such changes could dramatically increase Kao’s stock price, citing a potential 76% upside, which led to a notable rise in Kao’s share price by over 6% after the announcement.

THE DETAILS Oasis recommends Kao focus on international expansion of its core brands and appoint a Chief Marketing Officer with global experience, arguing that Kao’s product range has the potential to compete with leading global companies like Beiersdorf, L’Oreal, and Estee Lauder. Kao, however, expressed skepticism about Oasis’s suggestions, pointing to a misunderstanding of its strategic plans, yet showed openness to engaging with Oasis to discuss the new perspectives.

THE WHY? The activist investor criticizes Kao’s management strategy for having a “bloated” brand portfolio and missing global market opportunities, suggesting it has led to a loss in market share due to insufficient marketing. Despite outlining these criticisms, Oasis did not reveal the size of its stake in Kao, leaving the financial impact and influence of its campaign somewhat uncertain.