08.02.13
Japan
www.shiseido.com
Sales: $7.1 billion
Key Personnel: Shinzo Maeda, chairman, president and chief executive officer; Carsten Fischer, chairman and chief executive officer, Shiseido Americas; Tatsuomi Takamori, chief officer, domestic cosmetics business; Masaru Miyagawa, corporate executive officer, marketing; Youichi Shimatani, corporate officer, research and development; Hiroshi Maruyama, corporate officer, international business; Ryuichi Yabuki, corporate office, sales, domestic cosmetics business.
Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries. Brand names include Shiseido, Clé de Peau Beauté, Za, Tsubaki, Senka, Jean Paul Gaultier, Elixir Superieur, Maquillage, Nars, Bare Escentuals.
New Products: White Lucent Rapidly Radiant skin set, Bio-performance Super Corrective Eye Cream, Perfect Hydrating BB Cream, Perfect Rouge and Perfect Tender Sheer lipsticks, Urban Environment Tinted UV Protector, Ultimate Sun Protection Lotion+, Urban Environment Oil-Free UV Protector, White Lucent Power Brightening Mask.
Comments: Sales fell less than 1% in local currency due to a 1.8% decline in Japan that was partially offset by an 0.7% increase in international sales. Despite that, Shiseido executives noted that the business climate had worsened in China after anti-Japanese sentiment broke out in mid-September.
Although Bare Escentuals maintained growth and profitability since it was acquired in March 2010, CEO Shinzo Maeda said sales have remained lower than expected primarily due to weakness in North America and the decision to not enter China due to regulatory issues.
By region, sales in Japan fell 6.7% and European sales dropped 3.1%. In contrast, sales in the Americas increased 2.5%, rose 2.7% in Asia/Oceania and increased 1.6% in China, despite a difficult climate in the second half of the year.
To get growing again, Shiseido is making “substantial changes” without changing its medium- to long-term goal of becoming a global player representing Asia with its origins in Japan. These changes include rebuilding business in three key countries—Japan, where struggling retail sales are beginning to recover; China, where the situation has been very difficult for Japanese companies of late; and the US, where Shiseido is increasing its investment in Bare Escentuals.
To boost business in its home market, Shiseido is developing a new vision for cosmetic specialty stores, which enhances beauty consultants’ activities. At the same time, Shiseido is increasing support for Elixir Maquillage its mid-priced products. To improve consumer loyalty, Shiseido introduced Beauty & Co and watashi+, each of which encouraged more than one million consumers to register as members. Finally, corporate executives and the sales staff are working together to reduce product lines and distribution channels in an effort to focus activities.
To improve business in China, Shiseido is reducing the number of brands it offers in the country, but will increase its investment in what remain on shelves. The first brands to get more attention are Aupres and Urara, which will be promoted in 217 cities with populations in excess of one million. But even as it works to boost sales in China, Shiseido is looking elsewhere for growth including Russia, Brazil, Indonesia and India.
In India, initial efforts will target the “upper masstige” bracket with the skin care and makeup brand Za (pronounced zee-ei), which is currently offered in 12 markets in the Asia/Oceania region. The line is expected to bow in April 2014 with plans to be offered in 250 doors by the end of 2014, 650 doors in 2015, and expansion plans in place to reach over 1,700 doors by 2018. The global Shiseido brand has been present in the market since 2001 through a local distributor focusing on the prestige segment and will remain under the stewardship of the company. Prior to this latest announcement, Shiseido had focused marketing efforts toward India’s prestige segment. In 2001, it launched the global Shiseido brand in India through local distributor Baccarose Perfumes & Beauty Products Pvt. Ltd. Currently available at approximately 30 high-end department stores, the brand has recorded steady sales performance. In 2002, Shiseido launched Issey Miyake and other designer fragrances produced by its wholly-owned French subsidiary Beauté Prestige International (hereafter BPI) via Baccarose. The fragrances are currently available at some 120 stores across India.
According to a study carried out by Shiseido in 2011, the masstige market is eight times larger than the prestige market in which Shiseido currently operates. Therefore, to strategically expand its presence and better serve the profile of the local market, Shiseido established a representative office in Mumbai in 2011, carrying out marketing surveys and research into consumer habits and preferences.
Shiseido aims to become “a global player representing Asia, with its origins in Japan.” The ratio of its overseas sales has reached 44.9% in the most recently concluded fiscal year, bringing the near-term goal of 50% within reach. With the establishment of the Indian subsidiary, Shiseido has commenced direct investment in each of the BRIC (Brazil, Russia, India and China) markets. To pursue its steady growth strategy, the company intends to maintain its active investment not only in established markets but also in emerging markets as well.
www.shiseido.com
Sales: $7.1 billion
Key Personnel: Shinzo Maeda, chairman, president and chief executive officer; Carsten Fischer, chairman and chief executive officer, Shiseido Americas; Tatsuomi Takamori, chief officer, domestic cosmetics business; Masaru Miyagawa, corporate executive officer, marketing; Youichi Shimatani, corporate officer, research and development; Hiroshi Maruyama, corporate officer, international business; Ryuichi Yabuki, corporate office, sales, domestic cosmetics business.
Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries. Brand names include Shiseido, Clé de Peau Beauté, Za, Tsubaki, Senka, Jean Paul Gaultier, Elixir Superieur, Maquillage, Nars, Bare Escentuals.
New Products: White Lucent Rapidly Radiant skin set, Bio-performance Super Corrective Eye Cream, Perfect Hydrating BB Cream, Perfect Rouge and Perfect Tender Sheer lipsticks, Urban Environment Tinted UV Protector, Ultimate Sun Protection Lotion+, Urban Environment Oil-Free UV Protector, White Lucent Power Brightening Mask.
Comments: Sales fell less than 1% in local currency due to a 1.8% decline in Japan that was partially offset by an 0.7% increase in international sales. Despite that, Shiseido executives noted that the business climate had worsened in China after anti-Japanese sentiment broke out in mid-September.
Although Bare Escentuals maintained growth and profitability since it was acquired in March 2010, CEO Shinzo Maeda said sales have remained lower than expected primarily due to weakness in North America and the decision to not enter China due to regulatory issues.
By region, sales in Japan fell 6.7% and European sales dropped 3.1%. In contrast, sales in the Americas increased 2.5%, rose 2.7% in Asia/Oceania and increased 1.6% in China, despite a difficult climate in the second half of the year.
To get growing again, Shiseido is making “substantial changes” without changing its medium- to long-term goal of becoming a global player representing Asia with its origins in Japan. These changes include rebuilding business in three key countries—Japan, where struggling retail sales are beginning to recover; China, where the situation has been very difficult for Japanese companies of late; and the US, where Shiseido is increasing its investment in Bare Escentuals.
To boost business in its home market, Shiseido is developing a new vision for cosmetic specialty stores, which enhances beauty consultants’ activities. At the same time, Shiseido is increasing support for Elixir Maquillage its mid-priced products. To improve consumer loyalty, Shiseido introduced Beauty & Co and watashi+, each of which encouraged more than one million consumers to register as members. Finally, corporate executives and the sales staff are working together to reduce product lines and distribution channels in an effort to focus activities.
To improve business in China, Shiseido is reducing the number of brands it offers in the country, but will increase its investment in what remain on shelves. The first brands to get more attention are Aupres and Urara, which will be promoted in 217 cities with populations in excess of one million. But even as it works to boost sales in China, Shiseido is looking elsewhere for growth including Russia, Brazil, Indonesia and India.
In India, initial efforts will target the “upper masstige” bracket with the skin care and makeup brand Za (pronounced zee-ei), which is currently offered in 12 markets in the Asia/Oceania region. The line is expected to bow in April 2014 with plans to be offered in 250 doors by the end of 2014, 650 doors in 2015, and expansion plans in place to reach over 1,700 doors by 2018. The global Shiseido brand has been present in the market since 2001 through a local distributor focusing on the prestige segment and will remain under the stewardship of the company. Prior to this latest announcement, Shiseido had focused marketing efforts toward India’s prestige segment. In 2001, it launched the global Shiseido brand in India through local distributor Baccarose Perfumes & Beauty Products Pvt. Ltd. Currently available at approximately 30 high-end department stores, the brand has recorded steady sales performance. In 2002, Shiseido launched Issey Miyake and other designer fragrances produced by its wholly-owned French subsidiary Beauté Prestige International (hereafter BPI) via Baccarose. The fragrances are currently available at some 120 stores across India.
According to a study carried out by Shiseido in 2011, the masstige market is eight times larger than the prestige market in which Shiseido currently operates. Therefore, to strategically expand its presence and better serve the profile of the local market, Shiseido established a representative office in Mumbai in 2011, carrying out marketing surveys and research into consumer habits and preferences.
Shiseido aims to become “a global player representing Asia, with its origins in Japan.” The ratio of its overseas sales has reached 44.9% in the most recently concluded fiscal year, bringing the near-term goal of 50% within reach. With the establishment of the Indian subsidiary, Shiseido has commenced direct investment in each of the BRIC (Brazil, Russia, India and China) markets. To pursue its steady growth strategy, the company intends to maintain its active investment not only in established markets but also in emerging markets as well.
