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Shiseido To End Sales and Marketing Quotas

July 14, 2008

JAPAN: Shiseido Co. plans to eliminate sales and marketing quotas for cosmetics and institute a system that focuses more on repeat customers to drive growth.

According to published reports, the change will impact approximately 1000 employees at sales subsidiary Shiseido Sales Co., which markets and sells cosmetics to supermarkets and specialty stores. Starting this fall, the percentage of repeat customers and the number of on-site beauty consultations will be the basis for evaluations. Regional and branch managers will still be subject to sales targets.

In April 2006, Shiseido stopped its practice of setting sales targets for its beauty consultants. Based on an in-house survey, the company found that both customer satisfaction and sales improved.

According to the report, Shiseido expects the marketing reforms will lead to annual growth of approximately 2% over the next three years.
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