Shiseido

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Company Headquarters

7-5-5, Ginza, Chuo-ku, Tokyo, , , Japan

Driving Directions

Key Personnel

NAME
JOB TITLE
  • Kentaro Fujiwara
    Representative Corporate Executive Officer, Executive Officer President and CEO
  • Ayako Hirofuji
    Representative Corporate Executive Officer, Executive Officer Chief Financial Officer Chief DE&I Officer
  • Yoshiaki Okabe
    Corporate Executive Officer, Executive Officer Chief Marketing & Innovation Officer
  • Norio Tadakawa
    Corporate Executive Officer, Executive Officer Chief Business Transformation Officer Chief Corporate Communication Officer Chief Quality Officer
  • Toshinobu Umetsu
    Corporate Executive Officer, Executive Officer China Region Chief Executive Officer
  • Maria Chiclana
    Executive Officer Chief Legal Officer Global General Counsel
  • Mizuki Hashimoto
    Executive Officer Chief Brand Officer - Clé de Peau Beauté, THE GINZA, BAUM
  • Tomoko Ikeda
    Executive Officer Chief Brand & Product Innovation Officer
  • Yuko Kato
    Executive Officer Chief Corporate Governance Officer Corporate Secretary
  • Echo Lo
    Executive Officer Chief Brand Officer - brand SHISEIDO
  • Angelica Munson
    Executive Officer Chief Digital Officer
  • Antonios Spiliotopoulos
    Executive Officer Chief Supply Network Officer
  • So George Sugitomo
    Executive Officer Chief Creative Officer
  • Atsunori Takano
    Executive Officer Chief Information Technology Officer
  • Yosuke Tojo
    Executive Officer Chief Technology Officer
  • Chiaki Tomita
    Executive Officer Chief Brand Officer Global Premium Brands Assistant Chief DE&I Officer
  • Shinji Wada
    Executive Officer Chief People Officer
  • Kentaro Fujiwara
    CEO, Shiseido Japan
  • Toshinobu Umetsu
    CEO, Shiseido China
  • Nicole Tan
    CEO, Shiseido Asia Pacific
  • Ron Gee
    CEO, Shiseido Americas
  • Franck Marilly
    Chairman, Shiseido EMEA
  • Alberto Noe
    CEO, Shiseido EMEA
  • Philippe Lesné
    CEO, Shiseido Travel Retail
  • Barbara Calcagni
    President Global Brands NARS & Drunk Elephant
  • Yaël Tuil
    Vice President Global Fragrances

Yearly results

Sales: 6.9 Billion

Beauty Sales: $6.9 Billion

Major Products & Brands: Prestige, Premium, and Inner Beauty brands including Baum, Benefique, Clé de Peau Beauté, Dr. Dennis Gross, Drunk Elephant, Effectim, Gallinée, Inoui, Ipsa, Issey Miyake, Nars, Narciso Rodriguez, Serge Lutens, Shiseido, The Ginza, Tory Burch, Ulé, Zadig&Voltaire;

Anessa, Aqua Label, Aupres, D Program, Elixir, Haku, Integrate, Majolica Majorca, Maquillage, Prior, Revital, Sidekick, Urara, Inryu, Shiseido Beauty Wellness.

New Products:

  • Shiseido Revitalessence Skin Glow Foundation
  • Nars Light-Reflecting Prismatic Powder
  • Elixir Anti-Aging Cream
  • Narciso Rodriguez All of Me
  • Inner Beauty (new division)
  • Sidekick men’s moisturizers
  • Drunk Elephant Dive Right in Gift Package

Comments: Although overall net sales dropped 8.8%, sales in Shiseido’s largest market, Japan, climbed 9.4% due, in part, to improved tourism to Japan. Growth there was led by Clé de Peau Beauté and Shiseido brands. The Elixir brand also performed steadily, buoyed by the renewal of an anti-wrinkle cream as well as the launch of an anti-aging cream designed to boost skin firmness by leveraging a unique technology based on advanced dermatological science and research, approaching the multiple causes of loose skin.

Nars and Drunk Elephant performed well for Shiseido in 2023.

Elsewhere, sales in Shiseido’s China region fell 4% due to the effects of the company’s shift from a growth model primarily driven by large-scale promotions to a more sustainable growth model, which focuses on value-based brand and product communication tailored to consumer needs. And although brands like Shiseido and Clé de Peau Beauté continued to be the drivers of growth during the first half of the year, that growth was offset by the unfavorable impact of consumer pullback on purchases of Japanese products due to the release of treated water from the Fukushima nuclear plant as well as the weakening sentiment toward China’s economy.

Business in Shisiedo’s Asia Pacific region returned to growth, and South Korea and Southeast Asia delivered strong results. Overall, Nars and Shiseido continued to drive growth. As a result, net sales dipped just 1.1%.

In the EMEA region, Narciso Rodriguez delivered strong growth, benefiting from the success of the newly launched All of Me. Nars and Drunk Elephant also performed well; however, net sales fell 8.9%.

And despite strong interest in Drunk Elephant and steady growth from Shiseido and Nars, the company’s Americas business saw sales spiral down 20%.

Shisiedo’s Travel Retail business also suffered losses of 19%

To help increase investments in brands, innovation, and people, Shiseido launched SHIFT 2025 and Beyond, a three-year, medium-term strategy that’s structured to boost operating margin to 6% in 2024 and 9% in 2025. The longer-term goal is to attain a core operating margin of 15% by 2029.

2023-2024 Highlights:

In October, the company opened its first standalone store in Mumbai, India. The boutique, which opened with Shiseido’s Indian distributor Baccarose, brings Nars into the country for the first time.

In December 2023, Shiseido acquired DDG Skincare Holdings LLC, a company offering dermatologist-led, science-based prestige skincare under the brand Dr. Dennis Gross Skincare.

In July 2024, Shiseido announced it had entered into a long-term fragrance partnership with Italian luxury fashion house, Max Mara, giving Shiseido the ability to develop, produce, market, and distribute fragrances under the Max Mara brand.

And, at the end of July 2024, Shiseido announced that its current CEO, Masahiko Uotani would retire at the end of 2024. Taking his place will be Kentaro Fujiwara, who will assume the title of CEO on January 1, 2025.

Looking Ahead:

In Q1 2024, Shiseido’s net sales rose 3.9%, despite elevated global economic uncertainty, rising prices, and the sharp depreciation of the Japanese yen against major currencies.

In Q2 Shiseido reported a 1% drop in shares following its first-half earnings due to restructuring costs and a slumping demand in China due to unfavorable purchasing behaviors.

Sales: 8.1 Billion

Beauty Sales: $8.1 billion

Shiseido’s Brands
Prestige

  • Shiseido
  • Clé de Peau
  • Nars
  • Ípsa
  • Drunk Elephant
  • The Ginza
  • Baum
  • Benefique
  • Effectim
  • Ulé

Premium

  • Elixir
  • Anessa
  • d Program
  • Haku
  • Maquiillage
  • Aqualabel
  • Prior
  • Revital
  • Aupres
  • Sidekick

Fragrance

  • Issey Miyake
  • Narciso Rodriguez
  • Serge Lutens
  • Tory Burch

Inner Beauty—Ingestibles

  • The Collagen
  • Inryu

New Products

  • Nars Light Reflecting Foundation
  • Drunk Elephant B Goldi Bright Drops
  • Clé de Peau The Foundation
  • Elixir Lotion and Emulsion
  • Sidekick Skincare for Men

Shiseido Marked Its 150th Anniversary

Shiseido marked the 150th anniversary of its founding in 2022 and celebrated an overall sales boost of 5.7% thanks to solid performances from key brands like Clé de Peau Beauté and Nars. Its fragrances also performed well.

Regional year-on-year net sales figures were mixed. Japan was down -8.2%, China fell 6%, Asia Pacific was up 7%, The Americas were up 13.6%, EMEA grew 9.8%, Travel Retail grew a phenomenal 35.7%, Professional declined 38.9% and sales in the company’s “Other” segment grew a whopping 66.4%

By sales channel, prestige and premium accounted for 60% and 29% of sales, respectively. Fragrance represented 6% and Other, 5%.

In 2021, Shiseido committed to a multi-pronged restructuring and revitalization plan that included reforms and funding expenditures to transform its product, distribution, digital and R&D capacities. As a result of the plan, its skincare brands accounted for 70% of its total corporate sales in 2022, and its Americas and EMEA business were more profitable.

More 2022-2023 Highlights

In his address to shareholders, COO Kentaro Fujiwara said the company would be full steam ahead toward the goal of reaching a core operating profit margin of 15% with a 2025 milestone of 12%. He also affirmed that the company’s regionally focused investments would be in brands, innovations and people.

In Japan, the company will invest aggressively in skin beauty in order to improve. In China, the challenge will be to keep pace with fierce competition by, among other things, expanding the brand portfolio. In the Asia Pacific region, which the company views as most promising, the company will lean heavily on strengthening its prestige brands. And in its Americas business, Shiseido plans to strengthen its NARS, Shiseido and Drunk Elephant brands. In EMEA, the company will promote its skincare and fragrances.

In addition, Shiseido has fully committed to becoming a “personal beauty wellness company” by 2030. In the meantime, its medium-term plan called Shift 2025 and Beyond is targeted to provide a personalized experience for consumers with the goal of making Shiseido a top global beauty contender. To that end, the company pledged to invest ¥100 billion (about $100 million) into marketing during the next three years.

Shiseido’s Sustainability Efforts

On the sustainability front, Shiseido affirmed that its medium-to-long term targets were on track, with the ultimate goal of going carbon neutral at all its sites by 2026.

What’s more, the company is 64% closer to its ultimate goal of developing sustainable products with sustainable packaging 2025, and is closing in on its goal of using 100% sustainable paper by 2023.

In March, Shiseido began offering cosmetic packaging made with Amcor’s LiquiForm technology, which is said to reduce plastic packaging and CO2 emissions by 70%.

And in a November 2022 announcement, Shiseido said Masahiko Uotani, the-then president and CEO, would be appointed chairman and CEO. Kentaro Fujiwara would also be promoted to president and COO beginning on January 1, 2023. Uotani will then retire as CEO at the end of 2024.

Looking Ahead

For Q1 2023, sales rose 2.6%. Gains were led by Shiseido, Clé de Peau Beauté, Nars and Drunk Elephant. Shiseido said sales continue to recover in Japan and China, while sales in the Americas and EMEA remained strong.

In Q2 2023, like-for-like YoY sales increased 9% thanks again to the brands mentioned above.

Sales: 9 Billion

Beauty Sales: $9 billion

Major Products/Brands:

  • Prestige cosmetics and fragrances—Baum, Benefique, Clé de Peau, Dolce&Gabbana, Drunk Elephant, Effectim, Ípsa, Issey Miyake, Nars, Narciso Rodriguez, Serge Lutens, Shiseido, The Ginza, Tory Burch
  • Mid-priced cosmetics—Anessa, Aqualabel, Aupres, D Program, Elixir, Gracy, Haku, Integrate, Majolica Majorca, Maquillage, Prior, Revital, Urara
  • Professional—Shiseido Professional
  • Health Care—The Collagen
  • Life Quality Beauty—Perfect Cover Shiseido

New Products: Sidekick cosmetics, Ulé skin care, Inryu inner beauty; Shiseido—Essential Energy hydrating cream, Future Solutions LX Infinite Treatment Primer; Drunk Elephant—A-Gloei Maretinol Oil; Clé de Peau—Key Radiance Care limited 40th anniversary packaging, Sérum Éclat S; Elixir—Day Care Revolution; Nars—Light Reflecting foundation; Maquillage—Dramatic Essence Liquid; Sun Care—Anessa Day Serum; Shiseido Men

Comments: In the fiscal year 2021, global economic conditions remained challenging as the Covid-19 pandemic continued to impact economic activity, and consumer sentiment was low due to worsening corporate earnings and employment. In Japan’s cosmetics market, consumer traffic was affected by shortened operating hours in the retail sector and consumers staying at home under the intermittent states of emergency. Other factors included a decline in visitors to Japan, which affected inbound demand.

Despite the impact of the pandemic overall, progress in vaccination rollout drove recovery, particularly in Europe and the United States. As a result, Shiseido managed to recover net sales in all regions except Japan. Based on reported figures, net sales increased 12.4% year on year to $9 billion.

Regionally, despite a sizable sales dip of 8.9% in Japan, Shiseido’s domestic market still accounted for 26.7% (¥276.1 billion) of sales, followed by China, Americas, Travel Retail, EMEA, Asia Pacific, Other and Professional.

In Japan, Shiseido strategically strengthened investment in the skin beauty category in line with new consumer needs prompted by the Covid-19 pandemic and achieved market share gains, mainly in base makeup and sun care. In addition, the company engaged with a large number of consumers through various omnichannel initiatives in collaboration with business partners, such as live commerce events and online video counseling. Consequently, e-commerce sales grew by double digits. Shiseido also continued activities started last year aimed at maximizing the value it provides to consumers, in particular, agile development and launch of products that address changes in consumer needs, such as BB cream that stays put even under a mask, and revolutionary products with the Second Skin technology.

Sales in China were affected by partial retail closures and a plunge in consumer traffic due to unprecedented torrential rains in the third quarter and new Covid-19 variant outbreaks in key metropolitan areas. However, e-commerce remained strong thanks to strategic investment and accounted for high 40% of total sales, mainly due to sales growth well above the market for the Singles’ Day, China’s largest e-commerce event. Overall, continued strategic investment in prestige brands drove market share gains in the high-end category, specifically for Clé de Peau Beauté and NARS. Net sales in China grew 16.6% year-on-year to $2,386.5 million.

Net sales in Shiseido’s Asia Pacific business increased 9.9% year-on-year to $564.7 million thanks to further expansion into key e-commerce platforms in various regions and robust growth of prestige brands, including Shiseido and NARS.

In the Americas, vaccination rollout drove the recovery of the cosmetics market, including makeup, which had struggled. U.S.-based skincare brand Drunk Elephant opened new doors, while NARS grew its share due to virtual store openings and other digital marketing initiatives. In addition, SHISEIDO, Clé de Peau Beauté, and fragrance brands also performed well on the back of strengthened promotions. As a result, net sales rose 32.8% year-on-year to $1,054.3 million.

In the EMEA region, vaccination rollout aided market recovery in skincare and fragrances. Shiseido succeeded in capturing this turnaround to increase share in all categories through further rollout of its Clé de Peau Beauté and Drunk Elephant brands and e-commerce sales expansion thanks to online video counseling and digital promotions.

Shiseido’s travel retail business, which consists of cosmetics and fragrances mainly through airport and downtown duty-free stores, was affected by considerable reductions in international flights and the resulting decline in travelers worldwide, but sales still accelerated significantly, mainly for e-commerce. Net sales grew 22.3% year-on-year to $1,046.4 million.

2021/2022 Highlights:

In August 2021, Shiseido Americas, a subsidiary of Shiseido Company, sold three of its iconic brands—BareMinerals. Buxom Cosmetics, and Laura Mercier—to private equity firm Advent International. Shiseido said it would reinvest the funds from the sale into areas crucial for long-term growth, such as development of key brands and acquisitions, mainly in the skin beauty category, digital transformation, and enhancement of production capabilities and innovations.

In November, Shiseido unveiled Inryu, a new ingestible beauty brand which aims to improve the overall health of skin from the inside. When taken consistently, Inryu reportedly spreads beauty ingredients throughout the body. According to the brand, IN stands for inner beauty, and RYU means to flow.

Shiseido kicked off 2022 with a new advertising campaign celebrating the company’s 150th anniversary. The new campaign communicates the company’s goals for making a sustainable world where people can experience happiness through the power of beauty under its mission “Beauty Innovations for a Better World.”

In January, Shiseido entered a three-year global strategic partnership with internet and technology company Tencent through its China subsidiary, Shiseido China Co., Ltd. Through this partnership, Shiseido will work with Tencent to build a D2C model and strengthen its social commerce business to provide new services to Chinese consumers globally. Applying the know-how learned from this partnership to the entire Shiseido group, the company will strengthen its global growth by accelerating its group-wide digital transformation and enhancing the capability development in terms of digitalization.

In April, Revieve, a personalized digital brand experience company, launched an AI Makeup Advisor experience in collaboration with Shiseido. Consumers can access the Makeup Advisor via Shiseido’s website, where they will be prompted to upload a selfie and answer questions based on desired beauty goals. Based on Revieve’s AI selfie analysis, and user input, customers will receive a comprehensive list of recommended products based on full makeup application including eyes, lips and face. They can then try a product before purchase using true-to-life virtual try-on technology and add products to the virtual shopping cart.

Shiseido also unveiled a new prestige skincare brand “Ulé,” which has a mission to promote botanical, conscious beauty—and is the first skincare brand to grow its ingredients in its own indoor high-tech vertical farm. Ulé’s formulas and packaging are made in France, and the brand minimizes its packaging’s environmental impact. All eight of Ule’s products, consisting of serums, mists and creams, have lids made with Sulapac materials. The launch of Ulé marks the largest product range to date using Sulapac’s solutions.

In June, Shiseido launched Sidekick, a premium skincare brand for Gen-Z men based on the brand’s core value of “hybrid” that combines two different elements to create new value. The Sidekick hybrid skincare products are formulated by combining naturally derived ingredients with advanced technologies, and not only address the specific skin problems of Gen-Z men, such as oily skin and dry skin, but also support the skin’s moisture barrier function with each use, creating a skin environment that is more resilient.

Looking Ahead:

In the first three months of the fiscal year 2022, the global economy showed signs of overall recovery as the impacts of the Covid-19 pandemic eased worldwide. However, the spread of Covid-19 variants and the degree of their impact on the economy varied by country and region resulting in differences in economic climate. In addition, such factors as increasing tension in Ukraine, soaring commodity prices, and lockdowns, specifically in China’s Shanghai region, added to economic uncertainties. As a result, Shiseido’s Q1 net sales decreased 1.3% year-on-year to $1.9 billion.

Sales: 8.9 Billion

Beauty Sales: $8.9 billion

Major Products/Brands: Prestige cosmetics and fragrances including Bare Minerals, Benefique, Clé de Peau, Drunk Elephant, Ípsa, Issey Miyake, Laura Mercier, Nars, Narcisco Rodriguez, Serge Lutens, Shiseido and Tory Burch; Mid-priced cosmetics including Anessa, Aqua Label, Aupres, D Program, Elixir, Gracy, Haku, Integrate, Molica Majorca, Maquillage, Prior, Pure & Mild, Revital, Urara, Za; Professional: Shiseido professional; Health care: The Collagen; Life quality beauty: Perfect Cover Shiseido

New Products: Shiseido Pop PowderGel Eye Color, Ultimune Power Infusing Concentrate III, Vital Perfection Uplifting and Firming Cream, Nars Radiant Creamy Color Correct, Tory Burch x Shiseido Sunscreen, Ultimune Power Infusing Concentrate Floral Limited Edition, Baum skincare, Drunk Elephant C-Firma Fresh Day Serum

Comments: Although Shiseido celebrated expansions in growth for prestige brands in China and the Travel Retail Business in Asia, an increase in the skin care sales ratio stemming from the growth of skin beauty brands, and an increase in e-commerce sales, challenging global economic conditions and “stagnated” economic activity took a toll on the company’s economic performance in 2020. Net sales declined 17.8% year-on-year on a local currency basis (-18.8% year-on-year on a like-for-like basis, excluding such factors as the acquisition of Drunk Elephant).

Regionally, despite a sizable sales dip of 29.7% in Japan, Shiseido’s domestic market still accounted for 32.9% ($2.9 billion) of sales, followed by China (25.6%); Travel Retail (10.7%), EMEA (10.3%), Americas (9.9%), Asia Pacific (6.4%), Other (2.8%) and Professional (1.4%).

In Japan, Shiseido focused on consumer-oriented activities to address changes in consumer values and purchasing behavior. The emphasis was on hand creams and BB creams with staying power, even under masks. The company also took the time to strengthen its digital marketing, which drove double digit growth of e-commerce sales. But reduced foot traffic from shoppers and tourists led to a negative effect on sales.

China was similarly impacted; however prestige brands such as Shiseido, Clé de Peau Beauté, IPSA and Nars grew “significantly” as Covid-19 infections declined and the market showed signs of recovery. Net sales in China grew 9% year-on-year to $2.3 billion.

Net sales in Shiseido’s Asia Pacific business declined 15.3% year-on-year to $574.3 million despite considerable growth in e-commerce sales driven by Shiseido and Senka. Covid-19, however, blunted performances in South Korea and Thailand. Vietnam saw relatively little impact, with sales outperforming year on year due to steady recovery.

In the Americas, the company restructured its bareMinerals brand through closures of unprofitable boutiques and by strengthening the marketing behind its prestige brand Drunk Elephant – an acquisition from 2019 that also helped drive e-commerce sales. The bottom line though was an overall regional year on year sales decline of 25.7%.

In the EMEA region, e-commerce outpaced the market with strong performance turned in by Shiseido skincare as well as by the launches of Clé de Peau Beauté in Italy and Spain, and of Drunk Elephant in Germany, but COVID-19 made a heavy impact, eroding year-on-year sales 20.4%.

Shiseido’s travel retail business, which consists of cosmetics and fragrances mainly through airport and downtown duty-free stores, saw net sales fall 19.8% to $955.6 million.

2021 Highlights

In July, Shiseido announced the promotion of Ron Gee to president & CEO of Shiseido Americas. In addition to his role as CEO, Gee will continue to serve as global M&A leader for Shiseido Group. Gee previously served as interim CEO and as CFO, having held the latter position since 2016. He will continue to report to Masahiko Uotani, president and group CEO of Shiseido Company, Limited.

In August, Shiseido Americas Corporation, the company’s regional headquarters for the Americas and its consolidated subsidiary announced that it would be selling the related assets of prestige makeup brands bareMinerals, BUXOM, and Laura Mercier, thereby adhering to its “WIN 2023 and Beyond” business strategy that emphasizes skin beauty as its core category. The brands were transferred to Advent, a private equity partnership. Shiseido said it would reinvest the funds from the sale into areas crucial for long-term growth, such as development of key brands and acquisitions, mainly in the skin beauty category, digital transformation, and enhancement of production capabilities and innovations.

In September, Shiseido announced that Drunk Elephant would be available in all Ulta Beauty stores nationwide in the U.S. and online.

Looking Ahead

Despite challenging global economic conditions, Shiseido’s 2021 Q1 sales grew 7.5%; however, its outlook was cautious given that the pandemic continues to stagnate economic activity.

Sales: 10.8 Billion

Beauty Sales: $10.8 billion

Major Products/Brands:

  • Shiseido, Clé de Peau Beauté, BareMinerals
  • Buxom, Nars, Ipsa
  • Laura Mercier, Benefique, Dolce & Gabbana
  • Issey Miyake and Narciso Rodriguez
  • Elixir, Maquillage, Haku
  • Prior, Anessa, Aqualabel
  • Integrate, D Program, Aupres
  • Urara, Pure & Mild, Za
  • Senka, Tsubaki, Sea Breeze
  • Shiseido and Joico, MatchCo.

New Products:

  • Dolce&Gabbana fragrance
  • Optune IoT personalized skin care
  • Medicated Cate-Hybrid Foundation
  • Nars Extreme Effects Eyeshadow Palette
  • Acquisition: Drunk Elephant

Comments: Shiseido’s continued investment in its prestige brands paid off in 2019. The business unit accounted for a whopping 46% of Shiseido’s total sales and delivered a much welcomed, 3.4% boost in the company’s overall year-on-year consolidated net sales. In fact, Prestige sales grew 10% in 2019, followed by Fragrance with 10% of sales and +9% growth, Cosmetics with 30% of sales and +3% growth, Personal Care with 9% and +6% growth, and Professional with 1% of total sales and +6% growth.

Regionally, Shiseido achieved growth across most of its major markets. Despite relatively flat demand for cosmetics in Japan, Shiseido managed a modest 0.6% year-on-year sales growth thanks to strong performances turned in by SHISEIDO, the serum Ultimune and foundation products, HAKU and d program. The company also capitalized on China’s high demand for beauty products, turning in a 13% sales increase hinged on the sales growth of its prestige SHISEIDO, Clé de Peau Beauté, IPSA and NARS brands, as well as its cosmetics ELIXIR and ANESSA brands. Its Americas business was the lone region with a reported sales decrease (-5.6%) and the company pledged strengthening efforts that include the closing of unprofitable bareMinerals boutiques, concluding a licensing agreement with Tory Burch and acquiring prestige skin care brand, Drunk Elephant.

The Drunk Elephant deal, closed in November 2019 for a reported $825 million, came after a tug-of-war with Estée Lauder and Unilever. Drunk Elephant was founded by Tiffany Masterson as a solutions-oriented, cross-generational brand for all skin types, and has experienced exponential growth across a full range of consumer demographics, including Gen Z and Millennials since its founding in 2012  According to the brand, its “curated assortment of iconic hero products use biocompatible ingredients that directly benefit the skin’s health and support the integrity and effectiveness of the formulations”—and its playful brand voice, and strong community engagement have helped to build a loyal following. Masterson has remained with the brand as president and chief creative officer.

2020 Highlights

In May 2020, Shiseido announced a Q1 net profit plunge of 17%. Sales most notably fell in Japan (-21%) as well as in China (-12%). The company pointed to Covid-19-related closures of 70% of Chinese retailers from January to March, but by the end of March, over 90% had resumed operations. Sales also experienced similar declines in Asia-Pacific (-19.2%) and in The Americas (-19%). New fragrance launches by Dolce & Gabbana helped buoy January sales in EMEA, but quarterly sales still declined almost15%.

Commenting on the future, president and CEO Masahiko Uotani, said, “Going forward, business results are still subject to uncertainties, such as the viral spread and the timing of resumption of economic activities due to regulatory measures taken by each country. It is currently very difficult to assess trends and the impact of these uncertainties.”

A silver lining among the uncertainty was the June opening of a new “Beauty Square” facility targeting Japanese Millennials. Located on the first floor of the With Harajuku commercial complex in front of Harajuku Station, the facility offers cosmetics and other services including digital experience-based content and a hair and makeup salon where Shiseido hair and makeup artists offer beauty for visitors.

Sales: 9.9 Billion

Beauty Sales: $9.9 billion

Major Products/Brands
Prestige Skincare, Cosmetics, Fragrances and Personal Care including:

  • Shiseido, Clé de Peau Beauté, BareMinerals
  • Buxom, Nars, IPSA
  • Laura Mercier, Benefique, Dolce & Gabbana
  • Issey Miyake and Narciso Rodriguez, Elixir, Maquillage
  • Haku, Prior, Anessa
  • Aqualabel, Integrate, D Program
  • Aupres, Urara, Pure & Mild
  • Za, Senka, Tsubaki
  • Sea Breeze, Joico MatchCo.
  • Drunk Elephant (as of 10-2019)

New Products:

  • Shiseido Benefiance wrinkle smoothing eye cream
  • ColorGel lip balm, Sports HydroBB compact
  • Ultimune Eye power infusing eye concentrate
  • Waso beauty sleeping mask
  • Nars Mini Radiant creamy concealer
  • Narsissist Wanted mini eyeshadow
  • Clé de Peau Wrinkle Smoothing Serum Supreme
  • Enhancing Eye Contour Cream Supreme
  • Narciso Eau De Parfum Rouge.

Comments: Unifying under the new mission statement, “Beauty Innovations For A Better World,” 2018 saw Shiseido boldly achieve its VISION 2020 sales and profit targets two years ahead of schedule. Net sales grew 8.8% to $9.9 billion, driven by the prestige category which was bolstered by strategic investments.

Each of Shiseido’s major business categories posted impressive gains in fiscal 2018. According to the company, prestige brands like Shiseido, Clé de Peau Beauté and Nars and Laura Mercier accounted for 45% (+16%) of the company’s total sales, followed by cosmetics 31% (+12%), fragrance 9% (+9%), personal care 9% (+12%) and professional products 2% (+4%).

Regionally, Japan accounted for 41.6% of net sales (+9%), with China ranking a distant second with 17.4% of sales (+32.3%), followed by Americas at 12% (-0.4%). Shiseido said the growth of sales in Japan was particularly noteworthy considering the cosmetics market is only expanding at a 1% rate. The top performers responsible for this achievement included Ultimune serum and Elixir lotions and moisturizers. Gains in China came from top brands spanning Shiseido, Clé de Peau Beauté Ipsa and Nars, and also “Made in Japan” brands including Elixir and Anessa.

EEMEA 10.3% (+1.4%), Travel Retail 8.0%; (+35.4%), Asia-Pacific 6.2% (+13.1%), Other 2.6% (+0.8%); and Professional 1.9% (-57.7%) rounded out the company’s global sales reach.

In his address to shareholders, president and CEO Masahiko Uotani affirmed Shiseido was about more than simply selling cosmetics. Its corporate value is “a synergistic combination of economic and social values.” To that end, the company launched a new mission statement, “Beauty Innovations for a Better World,” to further a vision of developing innovations that are in step with “contributing to society and the people of the future.”

To that end, in May the company joined the Sustainable Packaging Initiative for Cosmetics (SPICE), co-founded by L’Oréal and environmental sustainability consulting firm Quantis, with the goal of collectively guiding sustainable packaging policies, driving packaging launches and innovation, and meeting consumer expectations on understanding the environmental performance of products.

In October the company also completed construction on its new Shiseido Global Innovation Center, a research hub in Yokohama that began operating full-scale this spring.

News of Note in 2019

It will be a busy 2019 for Shiseido. For starters, the company announced it would aim for a net sales increase of 9% (local currency basis), to ¥1,172.0 billion (about $11 billion USD), and an operating profit increase of 10.8% to ¥120.0 billion (about $1.4 billion USD). So far, the company’s most recent quarterly results are trending in the right direction: net sales were up 6% year-on-year to ¥564.6 billion (about $79.5 billion USD) compared with ¥532,596 billion (about $75 billion USD), for the same period. Meanwhile, its net profit per yen grew 10%, despite its operating profit taking a 3% hit, due to marketing investments. The company pointed to strong growth in the Chinese region, which has posted a 22% sales increase since Q1. Sales growth was also robust in the travel retail sector, which saw net sales surge almost 25% for the second quarter, driven largely by the Shiseido, Nars and Anessa brands.

On the packaging front, in May the company partnered with Kaneka to co-develop biodegradable polymer cosmetics packaging made of “Kaneka Biodegradable Polymer PHBH” with the goal of helping solve the problem of ocean plastics. According to Kaneka, PHBH is a 100% plant-based biopolymer—and delivers “excellent” biodegradability under different environmental conditions.

Looking Ahead

Uotani said in light of reaching its Vision 2020 goals so far ahead of schedule, the goals have been revised. The company is now working toward “achieving two trillion yen in sales and 300 billion yen in operating profit as ambitious long-term targets.”

Sales: 8.9 Billion

Beauty Sales: $8.9 billion (FY 2017: $7.3 billion)

Major Products/Brands:

  • Shiseido, Clé de Peau Beauté, Bare Minerals,
  • Buxom Cosmetics, NARS, IPSA, Laura Mercier,
  • Benefique, Dolce & Gabanna, Issey Miyake,
  • Narciso Rodriguez, Elixir, MAQuillAGE Haku,
  • Prior, Anessa, Aqualabel, Za, Aupres,
  • Urara, Pure&Mild, Senka, Tsubaki
  • Sea Breeze, Shiseido Professional
  • Joico, and MatchCo

New Products:

  • Perfect Cover Foundation MV Series
  • Shiseido Essential Energy Skincare
  • PICO cosmetics
  • Optune IoT*1 skin care
  • Giaran
  • Amazon Alexa Skill
  • Shiseido Makeup Collection
  • NARS High Voltage Highlighting Palette
  • NARS Powermatte Lip Luster
  • BareMinerals Blemish Rescue Skin Clearing Loose Powder Foundation

Shiseido, By the Numbers

Shiseido enjoyed an 18.2% overall increase in net sales and a whopping 118.7% increase in operating income, thanks to factors including global growth in the company’s Prestige category, sales from brands added to the company fold in 2016 and doubled-down commitment to the company’s cost structure reform. Japan represented 42.9% of sales; followed by China (14.3%), Americas (14.0%), EMEA (12.8%), Asia Pacific (5.4%), travel retail (4.4%), professional (4.3%) and other (1.4%). Category-wise, prestige brands including Shiseido, Clé de Peau Beauté, bareMinerals and NARS, accounted for 42% of sales, while the company’s core cosmetics brands such as Elixir, Haku and Prior supplied 30%. Fragrances, like Dolce & Gabbana, Issey Miyake and Narciso Rodriguez represented 11% of sales; mid-priced personal care shampoos and body care brands were responsible for 9%; and professional products brought in 5% of sales.

In Q1 2018, sales continued to climb in nearly every region: Japan (+17%), China (+124.8%), Asia-Pacific (+16.1%), EMEA (+11.7%) and travel retail (44.3%). The regional exception was The Americas, which saw sales decline 1.1%. Sales in the company’s professional segment also took a hit, tumbling 55.4%. The company still has high hopes for a turnaround, expecting 2018 year-end sales to grow 2.8%, operating income to increase 11.9% and net income to jump 137.4%.

News of Note in 2017-2018

After selling its Zotos haircare brand to Henkel last October, Shisiedo moved full steam ahead to explore new ways to merge tech and beauty. In November, the company announced the acquisition of Giaran Inc., a Boston-based leader in artificial intelligence (AI) platforms designed to improve concepts of personalized beauty. Current technology within Giaran includes Makeup Virtual Try On, Tutorials, Color Matching, Personalized Recommendations, Makeup Removal, Face Tracking and Skin Tone Detection. The technology can be used across mobile, tablet and desktop as well as through a smart mirror powered by full HD augmented reality.

November also saw the launch of Shiseido Skill, a voice service that provides beauty advice in step with Amazon’s Alexa technology. The service enables consumers to engage with their device to request a “beauty weather forecast” and basic makeup advice for conditions spanning dryness, dark spots/freckles, pores, wrinkles, laugh lines, sagging, dullness, dark circles, redness and acne.

In December, the company released a new IoT*1 Skincare System called Optune that couples digital technology with the company’s own skincare science and beauty research for personalized beauty solutions. The company says the technology “uses a special machine backed up by unique algorithms to satisfy skincare needs in real time.” Test sales of the beta version began in spring 2018 in Japan.

In January, Shiseido acquired Second Skin technology from Olivo Laboratories, LLC. The patented technology is said to create a flexible artificial skin through the use of the layered application of an exclusive emulsion on top of a polymer-based cream, immediately tightening skin to smooth irregularities and conceal wrinkles.

Looking Ahead

Shiseido has implemented VISION 2020, a three-year plan to help invigorate sales. For Japan and China, this means growing the company’s core skincare and prestige brands, connecting with younger (and older) consumers and boosting e-commerce to ultimately grow sales by 4% annually. For The Americas, this will be accomplished through balancing costs, boosting digital sales and promoting growth in makeup brands to achieve a 2% increase in CAGR. In addition to VISION 2020, another leg of the company’s long-term growth plan is to become a top three company on the global prestige cosmetic market by 2030.

In the meantime, Shiseido is endeavoring to help “shape the future of sustainable packaging,” having joined the Sustainable Packaging Initiative for Cosmetics (SPICE), which was founded by L’Oréal and includes Avon Products, Chanel, Clarins and Coty among its membership. The core tenet of SPICE is transparency—facts and metrics—to keep tabs on cosmetics brands’ commitments and goals on reducing packaging’s impacts on the environment.

Sales: 7.3 Billion

Major Products/Brands: Shiseido, Clé de Peau Beaute, Bare Minerals, Buxom Cosmetics, Nars, IPSA, Laura Mercier, RéVive, Benefique, Dolce & Gabanna, Issey Miyake, Narciso Rodriguez, Elixir, MAQuillAGE, Haku, Prior, Anessa, Aqualabel, Za, Aupres, Urara, Pure&Mild, Senka, Tsubaki, Sea Breeze, Shiseido Professional, Joico.

New Products: Shiseido Syncro Glow Luminizing Fluid Foundation; Buxom Full-On Lip Cream & Polish; Joico InstaTint line extensions (Rose Gold, Amethyst and Violet Opal); Nars color cosmetics Fall 2017 collection, WASO skin-care line.

Comments: With more than a century of business under its belt, Shiseido is one of Japan’s most revered companies as well as its primary market, accounting for 48% of sales. With an eye on the goal of further global expansion, the company has continued to work toward broadening its reach in other global regions: The Americas (19.1%), China (14.2%), EMEA (10%), Asia Pacific (5.8%) and travel retail (2.9%).

Having expressed the desire to make its prestige brands like its namesake Shiseido and Clé de Peau BEAUTÉ a priority, Shiseido’s prestige product sales comprised 39.9% of its total sales last year (+15%). Moving forward, the company promised to aggressively increase its investment in Laura Mercier and Dolce&Gabbana, the newest brands in its prestige portfolio. Going forward, the company stated that it will also prioritize the rejuvenation of bareMinerals, its personal care products in the Japanese market, and AUPRES, a China-exclusive brand that was rebranded in 2016.

Prestige sales were followed by cosmetics at 31% (+1%), personal care at 9.4% (+2%), fragrance at 7.9% (-15%) and professional with 5.5% (+2%).

News of Note in 2017

Endeavoring to personalize the beauty experience, Shiseido acquired MATCHCo. MATCHCo is a U.S. company responsible for developing a direct marketing approach that enables consumers to measure their own skin tones with a smartphone app then purchase custom-made foundation online. Shiseido said it would combine MATCHCo.’s digital technologies with its own R&D capabilities to enhance its own business model as it relates to broadening the appeal of personalized cosmetics.

Though not entirely personalized, the new WASO brand from Shiseido was developed specifically to empower “Millennials to feel beautiful in their own skin whatever their gender, nationality, age or status.”

With its name drawn from a combination of two words, “WA” meaning a Japanese sense of peaceful harmony, and “SO” meaning inspiration, idea and thought, WASO is said to embody authentic Japanese heritage and aesthetics.WASO is more than just a skincare line for Millennials; it “champions beauty-from-the-inside-out.” The line hinges on Whole Cell Release System W technology, which the company defines as “a method for formulating whole botanical cells…to deliver a total skincare solution.” It contains Japanese ingredients such as ninjin (carrot), biwa no ha (loquat leaf), tofu, shiro-kikurage (white jelly mushroom) and hachimitsu (honey) to treat Millennial skincare issues like dryness, oiliness and visible pores.

In February 2017, the Japanese Ministry of Health, Labour and Welfare approved Shiseido Retinol Vital Cream V, which contains the active ingredient retinol as a “quasi-drug for improving wrinkles.” The company characterized this as a significant coup because the Ministry rarely recognizes the impact of skincare on improving wrinkles, however Shiseido successfully proved that retinol improves deep wrinkles in accordance with the guidelines established by the Japanese Cosmetic Science Society. Because of the approval, Shiseido is the only company that can manufacture and sell wrinkle-improving products with the active ingredient retinol in Japan.

Looking Ahead

In the past decade, Shiseido has continued to expand into other parts of Asia and other parts of the world. To date, about 120 countries around the world carry Shiseido products, and the company is keen on riding that wave, setting a goal of reaching ¥1 trillion in sales by 2020 (sales reached ¥855 billion last year) with over ¥100 billion in operating income. The company also promised to invest in digital marketing and other domains to help grow its global profile, with the goal of raising the ratio of e-commerce to more than 20% of prestige sales by the end of 2020. So far, they’re off to a good start: In Q1 2017, sales rose 9% to more than ¥232 billion ($2.05 billion).

Sales: 6.3 Billion

Beauty Sales: $6.3 billion

Major Products/Brands: Shiseido, Clé de Peau Beauté, Bare Minerals, Nars, Benefique, Issey Miyake, Narciso Rodriguez, Elie Saab, Shiseido Professional, Joico, Elixir, MAQuillAGE, Haku, Prior, Anessa, Aqualabel, Integrate, Za, Aupres, Urara, Pure&Mild, Subaki, Senka, Sea Breeze

New Products: Shiseido Ever Bloom, Shiseido LiftDynamic Cream and LiftDynamic Eye Treatment, Shiseido Rouge lipstick, Nuit d’Issey Parfum, L’Eau d’Issey Summer 2015 Issey Miyake for Women, L’Eau d’Issey Pour Homme Sport Polar Expedition, L’Eau d’Issey Pour Homme Oceanic Expedition, Narciso Rodriguez for Him, Joico LumiShine Repair+ Permanent Crème and Demi-Permanent Liquid Color

Comments: After posting $6.5 billion in net sales in 2014, Shiseido launched Vision 2020, a rallying call to rejuvenate the more than 140-year-old beauty company. And after posting nominal revenue losses in 2015, the reorganizational effort seems perfectly timed. “Our roadmap for the six years through 2020 has two phases,” explained Masahiko Uotani, Shiseido Group CEO. “The first three-year phase is already under way, and involves rebuilding our business foundation so that we can grow. During the second three-year phase we will leverage this foundation to generate greater growth. Our targets for 2020 are net sales over ¥1 trillion, operating income over ¥100 billion, and ROE of 12% or higher.”

In keeping with the Vision 2020 plan, in March, Shiseido announced it would establish a new research facility in Japan, which it will refer to as its Global Innovation Center. The projected cost of the facility (excluding the cost of the land) when it opens by the end of 2018 is expected to be between $29-39 million U.S.

Shiseido’s key markets continue to be Japan, China and Asia-Pacific, as well as the Americas and EMEA (Europe, Middle East and Africa). The company reported that its Japanese market is growing moderately, supported by inbound demand, while the Chinese market has been growing at a mid-single digit rate. The company described the Americas as the “world’s largest cosmetics market,” and added that its strong performers have been Nars and Bare Minerals in the prestige makeup category, with Shiseido sun care holding the No. 1 position in department stores.

News of Note in 2016

In May, Shiseido announced that Bare Escentuals, an icon of West Coast beauty, would be moving its headquarters to New York. The company claims that BareMinerals is the No. 2 makeup brand in the U.S. behind MAC Cosmetics.

In June, Shiseido announced it had signed an agreement with Alticor Inc. to acquire its wholly-owned subsidiary Gurwitch Products, a marketer of global prestige cosmetics and skin care brands sold under the Laura Mercier and RéVive brand names. Annual net sales for Gurwitch totaled $175 million in the fiscal year ending 2015.

With increased sights set on The Americas, and on Color Cosmetics, Shiseido unveiled its Americas Innovation Center, a newly enhanced facility in East Windsor, NJ, in collaboration with its recently launched Center of Excellence for Makeup, which is based in New York City.

As of October, Shiseido is the owner of a worldwide license agreement for Dolce & Gabbana products, including the development, manufacturing and distribution of Dolce & Gabbana fragrance, makeup and skin care lines. This development comes on the heels of the December 2015 trademark acquisition of Serge Lutens, and the June agreement with Burberry to distribute the brand’s color cosmetics and fragrances in Japan.

Looking Ahead

In his address to shareholders, Norio Tadakawa, Shiseido Group CFO, said he expected “an uncertain operating environment during the year ending December 2016” due to a variety of factors not the least of which is the deceleration of China’s economy. He said the company would continue to invest in marketing and structural reforms to rebuild Shisiedo’s business foundation for long term growth, and went on to forecast a 3% year on year increase in net sales (in local currency).

Sales: 6.5 Billion

Beauty Sales: $6.5 billion

Major Products/Brands: Skin care, color cosmetics, sun care, fragrances and personal care marketed under brand names including Shiseido, Clé de Peau Beauté, Za, Tsubaki, Senka, Sea Breeze, Jean Paul Gaultier, Narciso Rodriguez, Elixir Superieur, Prior, Urara, MAQuillAGE, Issey Miyake, Benefique, Nars, Bare Escentuals, Decléor, Carita, Beauté Prestige International.

New Products: Shiseido Ultimune Power Infusing Concentrate 1&2, Clé de Peau Beauté Synactif Eye Care Ritual, Za True White Ex Perfect Protector, Za Perfect Solution Serum, MAQuillAGE Dramatic Melting Rouge Lipstick, Nars Audacious Mascara, Nars Liquid Gold Face Set, Bare Escentuals Bareskin Pure Brightening Serum Foundation.

Comments: Shiseido has been busy with lots of executive personnel changes as president and chief executive officer Masahiko Uotani continues to implement his ambitious Vision 2020 plan, which he created and set into effect shortly after his arrival at the company. Uotani believes that Shiseido’s stalled position in the global market hinges on the company’s failure to stay relevant with constantly changing consumers and markets—and has created an aggressive consumer-focused plan and a hefty investment in advertising/marketing to bring the company to a greater position in global beauty. There will also be a shift toward key products, as Uotani said, “Our inefficient organization also diluted our brand portfolio with too many products and brands.”

Shiseido’s Ultimune Power Infusing Concentrate helped sales in The Americas.

Further, in commenting on 2014 sales, he reiterated his five-year plan, saying, “Shiseido must do everything possible to reverse the long-term market share decline of its business in Japan to remain vital for the next 100 years. Our mission is to be number one in Japan by 2020. We will implement radical reforms to ensure all activities are totally consumer-oriented to once again be the Shiseido that consumers support. We will build the foundation to achieve these goals during the three years beginning 2015.”

For FY 2015, Shiseido reported sales of  $6.5 billion. Domestic sales reached $2.8 billion, a decrease of 3% over the previous year. Global sales increased 6.4% to come in at $3.6 billion, a new record, and on target with gradually tipping the sales ratio in the global direction—this year it hit 53% of sales. (The increase was partially due to the depreciation of the yen). Domestic Cosmetics, however, continued to slump, mostly due to weakening demand as a result of Japan’s consumption tax. By region, sales were highest in Asia and Oceania, which includes Shiseido’s China business.

The revitalization and introduction of brands led to stronger domestic sales of mid-priced and high-priced products. Sales also showed an increase in October 2014, when cosmetics were added to the list of items available free of consumption tax for overseas tourists visiting Japan. The ICHIGAN Project, which involved all employees, from R&D to sales, in a united effort to deliver brand value to consumers, was credited for growth in a number of beauty products, including Prior, a brand for “mature” women.

High-end brand Clé de Peau Beaute also performed well, emphasizing the trend that Shiseido’s high-priced items continue to gain ground, while its mid- and lower- priced brands suffer from increased competition.

In the Americas, both Nars and the fragrance business did well. Other contributors to sales growth included Shiseido, thanks especially to the launch of Ultimune Beauty Serum, and bareMinerals, with BareSkin, its first liquid foundation.

In Europe, Germany and Italy were weak due to challenging market conditions. However, Narciso Rodriguez and other designer fragrance brands performed well.

In China, which Shiseido says is its top-priority market, the focus was on consumer marketing and key brands in the portfolio. Shiseido said that while sales in China have fallen, they now have a concrete plan in place to achieve growth going forward.
Indonesia proved to be a hot spot as far as success in emerging countries.

News of Note

In June, Shiseido signed on to distribute Burberry makeup and fragrance products across Japan. Shiseido has been the sole distributor of Burberry fragrances in several countries through its subsidiary Beauté Prestige International, which is known for luxury brand fragrances.

Changes in executive management came in a spurt this past summer. In June, Louis Desazars, formerly president and CEO of Nars Cosmetics, was appointed president & CEO of Shiseido Europe Region (Europe, Africa and Middle East). Barbara Calcagni, former senior vice president, global marketing at Nars, succeeded Desazars as president of the brand.

In August, Shiseido announced the appointment of Marc Rey as president & CEO of Shiseido Americas, with the additional global brand responsibilities for Nars and Bare Escentuals. He replaced Heidi Manheimer who left the company.

Shiseido continues with its success in prestige fragrances, most recently launching Shiseido Ever Bloom in 32 countries throughout Europe and the Middle East. According to the parent company, fragrance accounts for 50% of all beauty sales in Europe.

Looking Ahead: Based on a moderate recovery of its domestic business and its strong efforts in China, Shiseido forecasts that consolidated net sales will increase 7.8% year on year. In Europe, they expect conditions in the cosmetics market to remain difficult due to the economy. In The Americas, however, the cosmetics market is expected to maintain moderate growth.

Sales: 7.4 Billion

Beauty Sales: $7.4 billion

Major Products: Skincare, fragrance, hair care, sun care, body care and makeup sold in both mass and prestige channels, domestically and globally, through divisions and under brands including: Shiseido, Clé de Peau Beauté, Za, Aupres, Tsubaki, Senka, Haku, Elixir Superieur, Anessa, Maquillage, Sea Breeze, Beauté Prestige International (Narciso Rodriguez, Jean Paul Gaultier, Issey Miyake, Azzedine Alaïa, Elie Saab), Nars, Bare Escentuals.

New Products: Shiseido Ibuki, Shiseido Ultimune Power Infusing Concentrate, Za Cosmetics, Bare Escentuals bareSkin, Clé de Peau Beauté le serum, Narciso fragrance, Elixir Superieur Enriched Serum, Nars Fall 2014 color collection, Maquillage True Cheek Blush, Adenovital Scalp Essence V.

Comments: Shiseido underwent some major changes during 2013-14, most notably the installation of a new president and CEO who aims to take the company to new heights. The newly named executive, Masahiko Uotani, with an MBA from New York’s Columbia University, had previously spent 17 years at Coca-Cola Japan where he had risen to the position of chairman, and then later served at BrandVision as Shiseido’s chief outside marketing advisor.

New president/CEO and marketing mastermind Masahiko Uotani has big plans for Shiseido’s global future.

Uotani took control of the company at a good time. The Japanese economy had recovered moderately, due partly to governmental assistance. Things had started looking up for the domestic cosmetics market, and there was a temporary surge in demand ahead of the consumption tax hike in April 2014.

Sales rose more than 12% for the year ended March 31, 2014, to $7.4 billion. Sales in Japan accounted for 46% of corporate sales, $3.4 billion, an increase of 1.1% from the previous year, while international sales reached $3.9 billion, exceeding 52% of total sales for the first time—not to mention skyrocketing more than 26%.

Sales in The Americas reached $1.2 billion; in Europe, $993 million; and in Asia/Oceana, $1.6 billion.

Shiseido’s annual increase was attributed to a marginal gain in higher net sales and favorable exchange rates. Much success is due to the global brand Shiseido.

In presenting the annual report, Uotani said he planned to overhaul Shiseido’s marketing strategy and focus on the company’s image as one that sells everything from mass-market toiletries to prestige skincare items. Another goal is to become the global expert in skin brightening/lightening.

Based on two decades of research, Shiseido says its Ultimune Power Infusing Concentrate features the world’s first technology to enhance skin immunity. It was the first product launched under Uotani’s tenure.

During FY14, the Shiseido Group had continued implementing its Three-Year Plan, targeting cost and business structure reforms.  Successful and static brands were assessed, as were regions. A plan was put in place to reinforce the company’s strengths in three areas: Japan, China and Bare Escentuals, Inc.

Segment sales increased 1.1% year on year while sales in the counseling category increased 4.7% as the company strengthened prestige products and promotions. However, sales in the self-selection category decreased by 4.6%, which Shiseido attributed to an excess lineup of summer products in the previous fiscal year. Sales in the toiletries category decreased 6.3% despite healthy sales of Senka.

In the cosmetics business, counseling is Shiseido’s strongest category, in which beauty consultants who personify omotenashi, the Japanese word for hospitality, offer counseling to propose the most suitable cosmetics, thus playing a key role in increasing the value of Shiseido’s brands. A company policy was added in the last quarter to evaluate beauty consultants based on retail sales targets for each store. As a result, sales increased 4-5%, with growth most apparent in mid- and high-priced cosmetics.

Domestic Market

However positive this all seems, Uotani cautioned that the company has not yet achieved a full-scale recovery. One major concern of his is that Shiseido has not responded rapidly enough to changing markets, consumer values and purchasing behavior—so he has effected strategies for both domestic and overseas business, and hired lots of women and young people. The No. 1 focus remains on its leading pillar, Shiseido, as the springboard to global markets. Other brands in the spotlight for growth include Maquillage, Elixir, Benefique and Haku. Aupres, Bare Minerals,  Nars, clé de peau Beauté (which accounts for the largest share of sales in the domestic cosmetics business and is Shiseido’s top-end prestige brand) and its designer fragrance brands (Beauté Prestige International) are also at the top of the list as revenue generators and brand leaders.

Hair care and hair color were also a priority in Japan. In May, Shiseido opened the Shiseido Cell-Processing and Expansion Center, which will centralize research and development on hair regenerative medicine.

With aging baby boomers a large part of Japan’s population, Shiseido has also focused on this demographic and is in the process of launching a targeted anti-aging line.

Global Market

International sales jumped, thanks to big gains in the U.S. via the Shiseido and Nars brands. Results in China were hurt by the Senkaku Islands dispute and sales there declined slightly. As stated earlier, Beauté Prestige International had a very good year, adding a fragrance license for fashion designer Azzedine Alaïa, on top of other successes. In April it became the exclusive distributor of Burberry fragrances and cosmetics in Spain, France and the U.S., as well as for most travel retail markets in Europe.

Most recently, BPI announced it had added a fragrance license for French fashion brand Zadig & Voltaire.

Sustainable Packaging

Shiseido also revealed a new focus on sustainable packaging, with about 50 cosmetic product containers—including those for Elixir, Tsubaki and Anessa brands—made of sugar cane-derived polyethylene. Attention is also on refill products and expanding the use of environmentally friendly bagasse paper.

Into the Future

All plans aside, at the end of July, Shiseido announced a mixed bag for first quarter 2015. The company reported a loss of about $17 million, blaming higher personnel expenses stemming from bonus payments.


However, first-quarter sales rose 3.7% to over $1.6 billion. First-quarter sales from the company’s Global Business unit grew 9.8%, but lost 1.8% in local currency terms. Shiseido said it posted growth in its Chinese business, and the Aupres brand performed well. As for the Americas and Europe, the company said Nars sold well, but sales of fragrances and bareMinerals products declined. Shiseido said first-quarter sales for its Japanese cosmetics business lost 3.3%. The company said consumers pulled back after April’s sales tax hike, but demand “appears to be recovering with each passing month.”

With Uotani’s projection that the number of cosmetics users in the Chinese market will top 330 million in 2020, it’s a good bet that Shiseido’s move toward reaching global success will include building on the renewal of the skin-brightening line of the China-only department store brand Aupres.

Sales: 7.2 Billion

Beauty Sales: $7.2 billion

A series of executive changes continues with Shiseido’s incumbent representative director, chairman, president and CEO Shinzo Maeda searching for his replacement.

Major Products: Prestige and masstige skin care, makeup, hair care and fragrance sold under local and global brands including: Shiseido, Cle de Peau Beauté, Bare Minerals, Aupres, Jean Paul Gaultier, Za, Tsubaki, Senka, Maquillage, Elixir Superieur, Aqualabel, Benefique, Sea Breeze, Nars, Issey Miyake.

New Products: Shiseido Future Solution LX, Elixir Day Care Revolution, Aqualabel Special Gel Cream, Maquillage True Powdery UV foundation, FullMake Washable Base.

Comments: It was not a good year for Shiseido, which posted its first full year net loss in eight years—and its first-time year-on-year loss in China in 32 years—but Shinzo Maeda, representative director, chairman, president and CEO, made a vow that things will turn around by March 2014, the finale of the company’s next fiscal year. By then, too, Maeda hopes to name his successor, as he had stepped up to the plate in a pinch for a one-year term when his immediate predecessor, Hisayuki Suekawa, asked to resign in February 2013 due to health issues.

Maeda declared the results for the year “wholly unsatisfactory.” Overall, net sales decreased 0.7% to $7.2 billion. The loss was estimated at $177.87 million, for the fiscal year.

Ibuki is the latest skin care launch from Shiseido, and is designed specifically to address the skin-care concerns of “millennial,” women ages 25 to 34.

In a letter to shareholders, he further stated: “The reason we are struggling is that we have lost customer support because we have failed to respond adequately to changes in our markets. In the past, Shiseido provided numerous brands and lines worldwide to every type of customer through multiple channels. However, this kind of omnidirectional marketing has dispersed Shiseido’s crucial human, material and capital resources, and sapped our ability to act and respond to change. Our number one priority for quickly getting back on a growth trajectory is building customer support so that we can prevail as competition intensifies.”

In Shiseido’s domestics cosmetics segment—which accounts for 51% of business—net sales totaled about $3.7 billion, a decline of about 2.2% compared with the previous year; global sales (outside Japan) reached $3.4 billion, down 2.5% on a local currency basis. Sales of each division in the company’s domestic cosmetics business segment—counseling, self-selection and toiletries—decreased year on year due to increased competition.

Still, Shiseido is poised to fight back and regain sales, and says it expects better times ahead in terms of profit and sales growth.

Japan’s largest cosmetics company said it expects net income for the 12 months ending March 31, 2014 to reach more than $200 million. A three-year plan was put into effect, specifically concentrating on Japan, China and Bare Escentuals.

Maeda said that underperforming divisions of the company are Bare Escentuals, which Shiseido acquired in 2010 for $1.7 billion (Shiseido blamed its net loss for the fiscal year on the impairment loss related to Bare Escentuals), and its China business. These two areas, in addition to the company’s domestic business, which was affected by economic woes, will be key to the cosmetics giant’s return to growth, said Maeda, who outlined a comprehensive plan to improve the big picture. Overall, the company that bills itself as “a global player representing Asia with its origins in Japan” will hone in on key products, sales outlets and markets.

Going forward, in Japan, Shiseido will focus on cosmetics specialty stores, and will include adviser support. At drug stores and general merchandise stores, it will aim to improve product variety and shelf-space allocation, as well as the visual merchandising of its products. As aging baby boomers are also a leading demographic in Japan, Shiseido will also work to develop new lines and products specifically for this group.

Shiseido blamed slumping sales in China, in part, on a territorial dispute over the Senkaku Islands, which has turned Chinese consumers against Japanese products. But Maeda said sales have begun to recover, and here, too, they will focus on key regions and top-selling brands.

Shiseido has been generating double-digit annual growth in its China business since launching export sales of cosmetics there in 1981. China now accounts for over 10% of Shiseido’s consolidated net sales. Japan’s largest beauty company plans to concentrate on two brands that are not significantly exposed to anti-Japanese sentiment because they are not marketed under the Shiseido name: Aupres, a national brand in the department store channel; and Urara, which is marketed exclusively through cosmetics specialty stores.

While China remains a challenging market, Shiseido says that the number of people using cosmetics in China is projected to increase to 330 million by 2020, so the region will of course, remain a high priority for improving sales.

In the prestige business in Japan, which Shiseido deems its greatest strength, the company will determine focus brands and lines and enhance customer service. Primary focus will be on the Clé de Peau Beaute brand, the global brand, Shiseido, and the Benefique line—all with enhanced customer counseling.

Focus will also extend to Thailand as the Thai cosmetics market follows China in terms of what Shiseido calls “remarkable growth.”

Whether connecting—or re-connecting—with consumers, it all comes down to the products, and Shiseido devotes a considerable amount of resources to R&D. In the past year, the results have paid off handsomely.

Innovations such as FullMake Washable Base (FWB), a makeup base that enables makeup removal with warm water, was a new introduction that began as a manager’s random insight. FWB already had a high level of awareness by the time it launched at sales counters in February 2013. Shiseido says the result was record-setting shipments of 1.28 million units in the first month after launch.

In July, Shiseido announced its new, affordably priced skin care product range, called Ibuki (which translates to “inner strength”), which launched in September. The seven products and a starter kit target millennials—women between 25 and 34 years old. Heidi Manheimer, chief executive officer of Shiseido Cosmetics America, noted that Ibuki was the brand’s first completely new skin care line in eight years.

Also in July, Shiseido announced that it had established a wholly owned subsidiary—Shiseido India Private Limited—in Mumbai, India, as part of its strategy to target the expanding middle-class masstige market, which is forecast to grow significantly in the coming years. Shiseido’s initial entry into the segment will target the “upper masstige” bracket with the skin care and makeup brand Za, which is currently offered in 12 markets in the Asia/Oceania region.

Maeda is confident of a return to profitability. He said signs of a domestic economic recovery are evident since Japan’s new government took office in December 2012, and these should have a positive effect on the country’s cosmetics market. Slight year-on-year growth is expected for the year ending March 2014.

Sales: 8.3 Billion

Beauty Sales: $8.3 billion

Major Products: Prestige, mass and masstige skincare, hair care, color cosmetics, sun care, fragrances and toiletries. Brand names include Shiseido, Clé de Peau Beauté, Nars, Za, Tsubaki, Senka, Sea Breeze, Elie Saab, Anessa, Benefique, Jean Paul Gaultier, Elixir Superieur, Maquillage, Bare Escentuals.

New Products: Nars Andy Warhol Color Collection, Clé de Peau Beauté Palette Voyage, Shiseido Benefiance Anti-Aging Line, Shiseido Future Solution LX Premium Skincare Line, Bare Escentuals bareMinerals Ready SPF 20 Foundation, BareEscentuals bareMinerals Ready Eyeshadows 4.0-Supernatural Trend Collection, Maquillage True Rouge, Sea Breeze Deep-Clean Astringent Actives.

Comments: Shiseido, which describes itself as “a global player representing Asia, with its origins in Japan,” celebrated its 140th year in business in 2012, and welcomed Hisayuki Suekawa as president and CEO. For the year ended March 31, 2012, net sales rose 1.7% to $8.3 billion. Domestic sales, which account for more than 50% of Shiseido’s total sales, remained pretty much flat at $4.3 billion, due in part, according to Shiseido, to the lingering results of the Great East Japan Earthquake. The company held a celebration to mark its 30th anniversary of doing business in China. It also announced a new tagline for its 2010 acquisition, Bare Escentuals—“Be a Force of Beauty”—to celebrate the brand’s 35th anniversary amidst a major campaign.

Overseas sales continued to grow strongly, increasing by double digits (11%) on a local currency basis in all regions, from the Americas and Europe to Asia and Oceania. The overseas sales ratio increased 1.4 percentage points to 44.3 percent. Shiseido credited the increase to strong growth in Europe and North America, sustained high growth rates in Asia and a healthy performance by the professional business. Also adding to global success was the addition of the Nars makeup brand and a good start to online sales in the U.S.

In the year ended March 2012, the first year of the company’s Three-Year Plan, investment was heavy in marketing for its top priorities: future growth in Japan and overseas (where it is aiming for increasing its ratio to 50%). This foundation is intended to set the stage for solid growth in the year ending March 2013.

To boost sales and perceived value, Shiseido cut the number of new product launches in half and focused on existing lines. This freed up manpower and reallocated funds for R&D, sales activities, and assistance at sales counters. Shiseido says that changes such as these led to multiple hit products including Essence Glamorous Rouge in the Maquillage line, which it describes as “an overwhelming success” that has sold more than one million units.

In department stores, Shiseido implemented activities programs that made direct contact with customers’ skin, and used beauty equipment at sales counters, with great results. In addition, Shiseido focused on season-specific promotions at counters. At the same time, the company worked to increase sales at drugstores and general merchandise stores, increasing the use of in-store promotions and providing samples via its website.

Shiseido was selected as one of the 2012 World’s Most Ethical Companies by the Ethisphere Institute, a U.S.-based international think tank dedicated to advocating best practices in business in such areas as corporate ethics and CSR.

Jennifer Connelly serves as global spokesperson for the Shiseido Future Solution LX Line.

In February, Shiseido announced Jennifer Connelly as the new global spokesperson for the Shiseido Future Solution LX Line.

In April 2012, in efforts to improve sales in Japan, a new business model using the Internet became a core domestic initiative. It is described as an entirely new initiative designed to expand the number of regular Shiseido customers by combining the strengths of the Internet and brick-and-mortar stores.

In addition to intense online sales efforts in the U.S., in June, the company announced three key changes to its organizational structure in the U.S. Specifically, the company will align the U.S. finance, legal and human resources functions of its premier consumer brands, including Bare Escentuals, Beauté Prestige International USA, Nars and Shiseido, into a unified, shared services platform. The company will consolidate its U.S. distribution operations for most of its brands at its distribution center in Columbus, OH, which will become the Shiseido Americas Distribution Center. Finally, Shiseido will merge its U.S. manufacturing business, Shiseido America Inc. into its Americas umbrella organization, Shiseido Americas Corporation.

Shiseido’s Radiant Lifting Foundation and Lacquer Rouge feature advanced concepts.

With R&D at its innovative core, in June, The Shiseido Research Center announced the development of Shiseido Lacquer Rouge—a liquid rouge that it describes as perfect in terms of “color,” “luster” and “moisture” and that will make an impression on women worldwide.

In order to move ahead in the global beauty marketplace, Shiseido is focusing on a number of key mega brands, such as skin care and makeup brand Za. In September, the company launched Za in the Japanese market.

Also in September, Chinese model Sui He was introduced as the newest face of the Shiseido Makeup line globally, and for Shiseido skin care and sun care in Asia.

In fiscal 2013, Shiseido said it will continue its efforts to enhance its presence in the prestige cosmetics market centering on the European market; strengthen and support its family of brands in the U.S. market; ensure sustainable growth in Asian markets, including China; and expand points of contact with customers in the masstige market in Asia.

Sales: 8 Billion

Beauty Sales: $ 8 billion

Major Brands/Products: Prestige, masstige and drug store cosmetics, skin care and fragrance brands including Shiseido, Clé de Peau Beauté, Aupres, Maquillage, NARS, Bare Escentuals, Beauté Prestige International, Senka, Za.

New Products: Shiseido Bio-Performance Advanced Super Revitalizing Cream, Jean Paul Gaultier Kokorico, bareMinerals Ready Eyeshadow, NARS Pago Pago lipstick, Clé de Peau Beauté cream eye color.

Comments: Clé de Peau Beauté gained ground atde partment store counters.

While Shiseido followed suit, targeting Asia (outside Japan) for additional consumers, the Japanese company also made a big push toward expanding its markets in the Americas as well. And good progress was made, although domestic sales lagged behind expectations. Shiseido’s goal for the last few years, represented by its motto—“Building Momentum as a Global Player Representing Asia with Its Origins in Japan”—has never been stronger.

Europe, North America and China are top-of-mind locations for Shiseido in growing its prestige business. The mission was well on its way in 2010, achieving strong growth overseas, with overall sales rising 4.1% to $8 billion.

Even though Shiseido’s domestic cosmetics business declined, the region still led in sales, and was followed closely by the global market. By specific region, Japan accounted for $4.6 billion in net sales; Asia/Oceana, $1.4 billion; the Americas $1 billion; and Europe; $1 billion.

In January 2011, prior to the release of the company’s 2010 figures in March, Shiseido announced the appointments of Shinzo Maeda, its then-president & CEO to the position of chairman, and Hisayuki Suekawa, corporate executive officer, to the position of president & CEO. The changes became effective April 1, 2011, the start of the new fiscal year.

2010 marked the final year of the organization’s first three-year plan. Overseas sales increased solidly, with strong growth in China and the rest of Asia boosted by the sales of Bare Escentuals, Inc., which Shiseido acquired in 2010 for $1.8 billion. In the domestic market, some sectors such as the self-selection category showed signs of recovery. However, the mid-priced market, a critical segment for Shiseido, proved challenging.


Shiseido’s purchase of bareMinerals opened up new opportunities.

Shiseido reported that it generated compound annual growth rates of 26% in the Americas, 11% in Asia/Oceania, and 5% in Europe. For the year ended March 2011, the overseas sales ratio increased to 42.9%. In Japan, however, sales continued to decrease. The company focused on key areas in each channel and concentrated resources. As a result, efforts proved successful at department stores and chain stores, but proved difficult with mid-priced products at drug stores and general merchandise stores.

Suekawa vowed to “achieve a domestic business turnaround and accelerate globalization to get Shiseido into a growth trajectory.”

He said that the company has launched an aggressive plan, with the goal of reaching $600 million to $1.2 billion in annual sales in each of several brands. Three brands each will be selected from the prestige (Shiseido, Clé de Peau Beauté and Bare Escentuals) and masstige categories (Za, Senka and a new launch). Focus will be on developing them as global megabrands.

In 2010, Shiseido opened a new factory in Vietnam as a base for its masstige market.

In the first quarter of 2011, Shiseido continued to struggle domestically, in part due to the disastrous earthquake and tsunami in March, as well as tax expenses. Global business again fared better than domestic, with revenue rising 15% to more than $820 million, while that in Japan advanced 2.6% to about $1.1 billion. Shiseido reported that sales in Europe and the Americas were still in recovery, while markets in Asia and other emerging areas continued to grow.

As part of Shiseido’s focus on customer service, the company responded to feedback, which resulted in a number of packaging changes to improve appearance and make products easier to understand and use. For example, Clé de Peau Beauté’s new skin care line features an easy-to-grip container design with an easy-to-push dispenser. Larger type size makes the package insert easy to read, the bottle color makes the item easy to identify, and the simple product names are easy to remember. In addition, a cream refill was added to extend use of the original container. With Haku Melanofocus, Shiseido developed a refill container that enables the user to easily see how much is remaining. Introducing the refill also reduced the amount of plastic used for containers by 60% to satisfy consumer complaints regarding wasteful packaging.

Shiseido announced that it intends to begin using sugar cane-based polyethylene from Braskem S.A.—P&G’s supplier—in cosmetics containers.

In August, Shiseido launched its first eCommerce site, to appeal to U.S. customers, and to further incorporate digital and social media into its marketing mix.

Increased sales in the coming year hold promise with several new prestige releases. Shiseido launched its new Bio-Performance Advanced Super Revitalizing Cream in September. Kokorico, Jean Paul Gaultier’s second major men’s fragrance(through Beauté Prestige International, Shiseido’s fragrance division), following Le Male 16 years ago, premiered in France and will spread globally, entering the U.S. in 2012. bareMinerals Ready Eyeshadow, a new concept in solid mineral technology, almost promises guaranteed success.

Sales: 6.9 Billion

Corporate Sales: $6.9 billion

Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries, sold under brand names including Bénéfique, clé de peau Beauté, Tsubaki, Joico, Decleor, Nars, Narcisco Rodriguez, Aupres, Bare Escentuals.

New Products: Uno Fog Bar, Senka Skin Lotion Made from Moisturizing Cream, Shiseido luminizing eye contour trio.

Comments: Now in the midst of a three-year plan to get on a growth curve for the next one starting in 2011, Shiseido holds firm to its goals: to become a global player representing Asia with its origins in Japan. Despite its sluggish fiscal year, in which corporate sales dipped 6.7%, the firm has set out on a major expansion program, preparing for growth, by opening facilities throughout Asia and acquiring the highly successful Bare Escentuals brand. Through its Beauté Prestige International division in the U.S., Shiseido sold the John Varvatos brand of fragrances to Elizabeth Arden, and signed on to a long-term licensing deal with upscale perfumery house Annick Goutal.

While efforts remained strong, the economy did not cooperate. In Japan, consumption continued to decrease. Through concentrated efforts, sales fared well in chain and department stores, but proved unsatisfactory in general merchandise stores and drug stores. High-priced counseling cosmetics large-ly outperformed the overall market but mid-priced counseling and low-priced self-selection products were down year on year. Outside of Japan, the company focused on its key global brand, Shiseido.

Overall, domestic cosmetic sales accounted for 83.8% of sales. However, in the year ended March 2010, it had shrunk an additional 3-4% over the previous year. In response, Shiseido targeted stores and brands/lines to strengthen sales in each channel, and implemented focused initiatives.

Even stronger overseas, cosmetics were responsible for 88.5% of sales. In overseas cosmetics markets, Shiseido is strong in China and the rest of Asia. In Europe and North America, Shiseido is boosting its presence as a prestige skin care line, and subsidiary Beauté Prestige International S.A. has designer fragrance brands that are strong in Europe.

Outside Japan, sales rose 3% as sales in Europe and North America began to rebound in the fourth quarter. In Asia, sales were up on continuing strength in China. In May 2009 Shiseido entered Africa for the first time.

Shiseido is aiming to develop a strong masstige business in Asia during its next three-year plan. In preparation, it expanded the areas in which it sells Za and Majolica Majorca, and raised sales of these products. Its new global production plant in Vietnam, its 15th worldwide, will prove key to masstige success, as Vietnam is situated at the heart of Southeast Asia, and will thus reduce the cost and time for shipments to the other countries of Asia.

Hoping to meet a wider range of customer needs during the next fiscal year, in March 2010, Shiseido added a number of products in the hair care segment.

In June, Shinzo Maeda, president and chief executive officer announced that the forecast for net sales for the year ending March 2011 will increase 9.4% year on year to $8.5 billion, “including the impact from adding Bare Escentuals to the scope of consolidation.”

Sales: 6.9 Billion

Beauty Sales: $6.9 billion

Major Products/Brands: Skin care, color cosmetics, sun care, fragrances, hair care and toiletries marketed under Shiseido and non- Shiseido brands including Nars, Joico, Jean Paul Gaultier, Issey Miyake and John Varvatos and Aupres (China) brands.

New Products: Zen eau de parfum limited edition, White Lucent brightening serum for neck and décolletage, Shiseido Future Solution LX, Benefiance NutriPerfect eye serum.

Comments: In 2008, Shiseido announced its 10- year goal to become a global player representing Asia with its origins in Japan, but the economic climate and decreased consumer interest slowed the plan. Shiseido suffered serious losses for the year ended March 31, with net sales dropping 4.6% to $6.9 billion. More than 62% of the company’s net sales are domestic.

Part of Shiseido’s plan to increase sales focuses on airports. Here, the new Nars counter in Bangkok’s Suvarnbhumi Airport.

Domestic cosmetics, which accounted for 59.7% of company revenues, declined 6.9%. Most products performed poorly, according to the company, except for Haku Ex brightening beauty essence, which was a bright spot as whitening and anti-aging products continue to hold their own. In general, the company reported that at-counter medium-priced cosmetics and lower-priced self-selection cosmetics struggled. Even in the traditionally well-performing high-priced cosmetics market, sales fell below expectations.

In China, Shiseido saw some promise, as it continued to implement a channel-specific brand marketing strategy. In the department store channel, Aupres, underwent a full renewal for the first time in 14 years, and reportedly, performed well according to plan. In the cosmetic specialty store channel, the number of contracts for Shiseido Chain Stores increased and sales grew at existing stores.

Shiseido’s French subsidiary Beauté Prestige International S.A. launched Jean Paul Gaultier’s designer fragrance Ma Dame. In the travel retail business, Shiseido worked to attract new customers by opening stores at major airports and expanding the number of products carried at duty-free stores and in-flight. Just announced: Couturier Elie Saab has signed a 10-year fragrance and cosmetics-licensing deal with Beauté Prestige.

Going forward, Shiseido aims to target masstige brands and boost sales of its so-called power shops—chain stores that have voluntarily strengthened ties with the cosmetics firm. The company plans to increase the number of power shops from 600 to 2,000 within three years.

In department stores and structured retailers, Shiseido will continue to strengthen its measures to innovate sales via beauty consultants. It will zero in on Revital Granas. Shiseido will continue to create counters for Clé de Peau Beauté and expand the number of stores carrying the Synergique line, which sold well in 2008 as the high-end line of the brand.

In drugstores, especially major chains, Shiseido will focus on hair care, skin care, and men’s products. In addition, the company plans to relaunch its Aqua Label and unveil a hair styling product—which it calls groundbreaking— called Uno.

To make Shiseido a more competitive global player, the company plans to remodel counters and roll out Solution LX, a premium line of day and night face creams. For fiscal 2009, Shiseido plans to continue its focus on key metropolitan areas in Europe, the U.S. and Asia.

In March, Shiseido became the first company in the cosmetics industry to be certified under the Japanese Ministry of the Environment’s Eco-First Program, which enables certified companies to use the Eco- First mark in publications and advertising.

Sales: 6.4 Billion

Beauty Sales: $6.4 billion

Products/Brands: Skin care, color cosmetics, sun care, fragrances, hair care and toiletries under brands including Shiseido, Decleor, IPSA, Ettusais, D’icila Parfums Issey Miyake, Parfums Jean Paul Gaultier, Parfums Narciso Rodriguez, Nars, Clé de Peau Beauté Za, Supreme Aupres.

New Products: Clé de Peau Beauté La Crèmes, Revital, Aqua Label skin care, Uno men’s skin care, Tsubaki Golden Repair hair care, Urara Makeup, Shiseido BOP intensive skin collective program, Mika Ninagawa collection.

Comments: In March, Shiseido completed a three-year plan that was initiated in April 2005 to maximize growth potential and increase profitability. Shiseido said its performance exceeded all the initial goals of the plan. The company is currently in the midst of an extensive restructuring program that aims to make it “a global player representing Asia with its origins in Japan.” While the company’s domestic cosmetics business—which accounted for over 60% of the company’s net revenues—declined 1.9%, consolidated net sales for the year ended March 31, 2008, rose 4.2% to $6.4 billion. Overseas sales, especially in China, were especially strong. China sales have been growing at 30% annually according to the company, and dedicated brands specifically aimed at Chinese consumers performed especially well in the region over the year.

Shiseido is focusing on its Nars color cosmetics line, pushing for Nars to become a leading makeup brand within the company.

With sales of prestige products, self-selection products and toiletries failing to match their previous-year levels, Shiseido worked to create “broad and strong” lines by nurturing mature brands, but struggled with the downturn of consumer sentiment and increasing competition. Reportedly, the company had more than 100 lines five years ago and has now trimmed back to about 27, including six “mega-brands.” Shiseido plans to cut further to about 21 lines.

In the professional division, which supplies and operates beauty salons, sales fell below the previous year’s level.

Sales in the overseas cosmetics business rose 17.6%, with steady sales increases in all regions, led by China. In China, Shiseido advanced its channel-specific brand strategy with a focus on Aupres, a dedicated brand for department stores, as well as Supreme Aupres, billed as an upper prestige line. In Asia, Europe and North America, Shiseido strengthened its marketing activities by zeroing in on strengths in anti-aging and skin-whitening products. During 2007, Shiseido enhanced its designer fragrances business and expanded shelf space in duty-free shops.

During the next decade, Shiseido aims to improve quality “across the board” from fiscal 2008 to fiscal 2010; get into a “growth trajectory” between fiscal 2011 and fiscal 2013, and make “a leap forward” in fiscal 2014. Within 10 years, Shiseido says it plans to “surpass net sales of one trillion yen (about $8.9 billion), with more than half of sales being achieved overseas.”

Part of its new plan will be to create a brand loved by customers throughout the world and establish an undisputed presence in Asia. The firm announced plans to continue to liquidate and withdraw from unprofitable businesses and brands, and that it would withdraw from fashion and accessories. Shiseido is focusing on its Nars color cosmetics line, pushing for Nars to become a leading makeup brand.

In addition, on July 1, Shiseido Co., Ltd. consolidated the business operations and assets of Shiseido Cosmetics (America) Ltd., Nars Cosmetics, Inc. and ZIC Corporation into Shiseido International Corporation, and changed the name of the company to Shiseido Americas Corporation (SAC). In October, Shiseido Co. announced that it had merged its Shiseido Europe and Shiseido France subsidiaries.

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