Top Companies Report

6. Shiseido

August 11, 2011

Japan

www.shiseido.co.jp


Sales: $7.5 billion


Key Personnel:

Hisayuki Suekawa, president and chief executive officer;Yoshinori Nishimura, corporate officer; Patrice Bellard, president, Beaute Prestige International.


Major Products:

Skin care, color cosmetics, sun care, fragrances and toiletries. Brand names include Future Solution LX, Bio-Performance, Benefiance, White Lucent, The Skincare, Eudermine and Pureness.


New Products:

Bare Escentuals (acquisition), Future Solutions.


Comments:

Sales fell 2.7% last year due to continued sluggishness in Japan, which accounted for more than 63% of sales.Sales in Japan declined 5.8%.


But the big news last year was the $1.8 billion acquisition of Bare Escentuals, which represents Shiseido’s latest effort to build a bigger consumer base in the US. Bare Escentuals gets about 88% of its sales from the US. Aided, in part, by Bare Escentuals, Shiseido’s sales in the Americas surged nearly 81%. Sales rose 6% in Europe and 5.9% in Asia/Oceania. During the year, the company entered nine new countries, including South Africa and Mongolia.


As it looks beyond its borders, Shiseido will have a new leader at the helm. In January, the board elected Hisayuki Suekawa as Shiseido’s 14th president and chief executive officer. He succeeded Shinzo Maeda, who was named chairman. Prior to this appointment, Suekawa was corporate officer and general manager of corporate planning. The new president’s goal is to boost international sales to 50% of corporate sales by 2017—that’s up from 42% in the most recently concluded fiscal year. The focus beyond its home market comes at a time when demand in Japan remains anemic and wages sluggish. In particular, Suekawa has his sights set on China, where he will try to increase sales at least 15% a year for the foreseeable future. Last year, Shiseido launched the DQ mass-market skin brand in China, where the economy is growing 10.3%. China accounts for about 10% of Shiseido’s sales.


In March, Patrice Bellard was selected as president of Beaute Prestige International, Shiseido’s designer fragrance division.


Following the earthquake and tsunami disaster in Japan, Suekawa toured the area and said despite the devastation, cosmetics remained essential items in women’s day-to-day lives. To help keep spirits up, Shiseido volunteers flocked to emergency shelters with cosmetics and other beauty activities.


Looking ahead, the company expects sales to rise 1.4% to 680 billion yen. In Japan, sales are expected to be flat, but elsewhere, sales are expected to rise 10% in local currency terms. To keep sales growing, the company is focused on three major brands: Shiseido, Bare Escentuals and Cle de Peau Beaute, a recently revamped line that company executives say will appeal to wealthy consumers in North America.

Related End-User Markets:

blog comments powered by Disqus
  • Shin-Etsu Updates Sunscreen Toolbox

    October 6, 2011
    Shin-Etsu Updates Sunscreen Toolbox

  • Witch

    Witch's Brew: Dickinson's celebrates milestone in 2016

    Christine Esposito, Associate Editor||February 1, 2016
    Dickinson’s celebrates 150 years of witch hazel skin care with the biggest line expansion in the company’s history.

  • From Research to Retail

    Tom Branna, Editorial Director||February 1, 2016
    What began as research on skin disorders led a dermatologist and his father to create their own skin care formulas.

  • 5 Things I Learned

    5 Things I Learned

    January 15, 2016
    The Avon & Women’s Dermatologic Society Mentorship Program. Dr. Sabrina Fabi (left) and Dr. Kimberly Jerdan.

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.

  • In-Cosmetics Paris Has Sights on US

    In-Cosmetics Paris Has Sights on US

    Imogen Matthews , In-Cosmetics||December 2, 2015
    Market focus is on the USA.

  • Just Wild About Harry’s Cosmeticology

    Just Wild About Harry’s Cosmeticology

    Tom Branna, Editorial Director||November 2, 2015
    The ninth edition, edited by Meyer Rosen, has been expanded and improved with an emphasis on the future of the industry.

  • Lush Is Flush with Novel Ideas

    Lush Is Flush with Novel Ideas

    Tom Branna, Editorial Director||November 2, 2015
    New products are the lifeblood of every company. Lush will launch more than 200 of them.

  • Contract Manufacturing/Private Label Directory

    Contract Manufacturing/Private Label Directory

    October 1, 2015
    Our directory is your source to find a manufacturer to get your product to market.

  • Winner Unmasked

    Winner Unmasked

    October 1, 2015
    Laneige’s Water Sleeping Mask takes home top honors as Happi’s first Anti-Aging Product of the Year.

  • An Arduous Task?

    An Arduous Task?

    Tom Branna, Editorial Director||October 1, 2015
    Elizabeth Arden's JuE Wong is confident that the way to right the company’s ship is by tapping into its rich heritage.

  • Slow Burn

    Slow Burn

    Tom Branna, Editorial Director||October 1, 2015
    No news from the FDA is bad news for the sun care industry.

  • Tried & True

    Tried & True

    Melissa Meisel, Associate Editor||October 1, 2015
    Test providers strive to prove a product’s efficacy for consumer confidence.

  • Market Your Cosmetics In Europe with Safety

    Market Your Cosmetics In Europe with Safety

    Pascal Yvon, IDEA TESTS Group||October 1, 2015
    Compliance to European safety regulations for cosmetic products, final formulations and ingredients.

  • Talking Point

    Talking Point

    Christine Esposito, Associate Editor||October 1, 2015
    For its inaugural Sustainability Dialog in Frankfurt, Clariant gathered stakeholders that included a mix of customers, third

  • A Consumer Revolution

    A Consumer Revolution

    Melissa Meisel, Associate Editor||June 1, 2015
    IRI’s 2015 Summit celebrates the progression of information.

  • Interior Design

    Interior Design

    Melissa Meisel , Associate Editor||May 1, 2015
    Nutritional products can improve and beautify skin from the inside out.

  • Face Valued

    Face Valued

    Christine Esposito, Associate Editor||May 1, 2015
    Skin care formulations that promise to protect a prized possession—one’s appearance—are always in demand.

  • Anti-Aging Moisturization

    Anti-Aging Moisturization

    Dr. Stefan Banziger, Dr. Stefan Hettwer, Brigit Suter, Barbara Obermayer, Rahn AG, Zurich, Switzerland||May 1, 2015
    Researchers at Rahn develop a symbiotic moisture concept from lichen, moss and fern that hydrates the skin.

  • A Multifunctional Ingredient for Delicate Eye Contour

    A Multifunctional Ingredient for Delicate Eye Contour

    Julia Comas, Cristina Davi, Elena Canadas, Albert Soley, Raquel Delgado , Lipotec SAU||May 1, 2015
    Lipotec’s Eyedeline marine ingredient provides several benefits for the delicate skin around the eyes. It reduces vascular pe

  • Yeah, But How Does It Make You Feel?

    Yeah, But How Does It Make You Feel?

    Imogen Matthews, In-Cosmetics||January 6, 2015
    An update on the growing importance of creating a sensory dimension in cosmetics and toiletries.

  • New and Improved?

    New and Improved?

    Melissa Meisel , Associate Editor||January 6, 2015
    Emerging skin care brands manage to find their way in an increasingly competitive marketplace.

  • Think Differently

    Think Differently

    Tom Branna , Editorial Director||January 6, 2015
    The 2014 Annual Meeting of the Society of Cosmetic Chemists attracted the largest crowd in years.

  • Left to Their Own Devices

    Left to Their Own Devices

    Imogen Matthews, In-Cosmetics||November 3, 2014
    Demand for mechanical gadgets of all types continues to grow in the global personal care market.

  • Over Exposed

    Melissa Meisel, Associate Editor||November 3, 2014
    NYSCC explores opportunity in sun care at symposium.

  • Never Ending Journey

    Never Ending Journey

    Melissa Meisel and Christine Esposito , Associate Editors||November 3, 2014
    Sustainability is the present and future of household and personal care packaging.

  • An Aromatic Frontier

    An Aromatic Frontier

    Melissa Meisel , Associate Editor||November 3, 2014
    Marketers are revolutionizing the category with a variety of novel scent stories for the season.

  • How Now, Kao?

    How Now, Kao?

    Tom Branna, Editorial Director||November 3, 2014
    The multinational consumer product giant is bringing its extensive product line to consumers around the world.