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Shiseido Makes Gains

November 14, 2005

JAPAN: Cosmetics maker Shiseido reported it bounced back from a net loss in 2002 to a profit of $204.8 million for the year ended March 31, 2003. Sales rose 5% to $5.1 billion, driven by overseas sales in China, Asia-Oceania, Europe and the U.S.
Executives said the gains were the result of implementing a “dynamic production structure” that can quickly adjust to fluctuations in demand and reduce inventories. Also, the company cut inventories of toiletries, pared down brands and cut back ad spending. Shiseido plans to focus on specialty shop sales, which account for 50% of cosmetics sales, using point-of-sale terminals.
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