Kanebo Ltd., once an icon of Japanese industry, faces a grim future as it begins to restructure under the direction of a government-run corporate bailout agency. The cosmetics business is already in the hands of a new independent company owned by the agency. The latest revival plan, unveiled earlier this week, covers four remaining operations: textiles, household goods, pharmaceuticals and food.

The revival plan itself, to be carried out in three years, is no guarantee that Kanebo will return with flying colors. In fact, given the intensifying competition at home and abroad, there is no way, it seems, to rebuild it as the sprawling business conglomerate of before. The much-touted "pentagon strategy" of promoting five different operations, including cosmetics, is a thing of the past in this age of global competition.

That must be a painful thought for thousands of Kanebo employees and clients who remember the glory days. But this is not a time for nostalgia. The reality demands that remedial action be taken without delay. The key word is revival. The task for the Industrial Reconstruction Corp. of Japan -- Kanebo's leading shareholder -- is not to prop up a struggling company but to bring up a competitive enterprise. The golden rule is to supply products tailored to consumer needs.