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    Top Companies Report

    6. Shiseido

    ...

    08.01.14
    Japan
    www.shiseido.com
    Sales: $7.4 billion

    Key Personnel: Masahiko Uotani, president and chief executive officer; Chikako Sekine, corporate officer, beauty consultation, beauty creation, consumer information and domestic non-Shiseido brand business; Ryuichi Yabuki, corporate executive officer, domestic cosmetics business; Jean-Philippe Charrier, corporate officer, professional business operations; Takahiro Hayashi, corporate officer, corporate culture, advertising creation and public relations; Masaya Hosaka, corporate culture, technical planning, quality management, pharmaceutical affairs and frontier science business; Kiyoshi Ishimoto, corporate officer, supply chains; Norio Iwasaki, corporate officer, domestic cosmetics business; Hiroshi Maruyama, corporate officer, international business strategy and marketing; Shigeto Ohtsuki, corporate officer, personnel and corporate culture reforms; Kazuhisa Shibata, corporate officer, general affairs, legal affairs, executive affairs, CSR and environmental affairs; Youichi Shimatani, corporate officer, research and development; Shigekazu Sugiyama, corporate officer, marketing, domestic cosmetics business; Norio Tadakawa, corporate officer, chief financial officer.

    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 total brightening serum, Bio-performance Firm & Restore, Future Solution LX superior radiance serum; Ultimate Sun Protection Spray 50+ and Sun Protection Stick SPF 37; Sweat & Oil Blotting Film and Paper; Zen and Zen for Men fragrances; Radiant Orchid color cosmetics collection, NARS Smokey Eye Kit and Fall 2014 color collection. To be launched: Zadig & Voltaire fragrances.

    Comments: Sales rose more than 12% for the year ended March 31, 2014. Domestic sales increased 1.1%, while international sales surged 26.4%. The increase was attributed to a marginal gain in higher net sales and favorable exchange rates. Domestic sales represented 51% of total sales. Shiseido continues to focus on core brands and two mid-priced lines, Elixir skin care and makeup and Maquillage makeup led gains. To attract older consumers, Shiseido created a dedicated website for seniors that offers “next generation” beauty solutions. At the same time, the company set up a toll-free information line for seniors and began publishing Kirameki Ms. Tsushin, a dedicated tabloid.

    Within its health care business, Shiseido focused on The Collagen, its line of beauty foods, and rolled out Tsuyatsuya Purun Jelly within the Kirei No Susume line of beauty drinks.

    International sales jumped, thanks to big gains in the US via the Shiseido and Nars brands. Sales also got a lift once Shiseido began handling the Ferragamo and Burberry fragrance brands. Results in China where hurt by the Senkaku Islands dispute and sales there declined slightly. Outside China, sales rose in other Japanese markets.

    In February, Shiseido agreed to sell its Carita and Decléor brands to L’Oréal. Together, the brands had sales of nearly $140 million. Carita is available in 56 countries and Decléor is available in 80 countries.

    On April 1, Masahiko Uotani became president and chief executive officer, replacing Shinzo Maeda, who retired.

    Also in April, Shiseido opened a research facility dedicated to hair regeneration at the Kobe Biomedical Innovation Cluster in Kobe, Japan. The move came after Shiseido acquired the rights from RepliCel Life Sciences to use RepliCel Hair-01 (RCH-01) technology throughout Asia. RCH-01 is described as an autologous cell transplantation technology, in which specific cells isolated from the hair follicles taken from the scalp of a patient are cultured and injected into the bald scalp area, potentially stimulating residing hair follicles and promoting new growth in the balding area.

    Also in April, Shiseido expanded its operations in Indonesia with 65% ownership of PT Shiseido Cosmetics Indonesia. Sinar Mas Group owns the rest of the JV. The company notes that Indonesia has the world’s fourth largest population (about 250 million) of which 60% is below 35 years of age.

    In June, Shiseido signed a licensing agreement to develop fragrances under the Zadig & Voltaire French ready-to-wear fashion label.

    Looking ahead to the new fiscal year, the company expects domestic sales to decline nearly 2%, while international sales are expected to increase 6.6%. Shiseido derives more than half of its sales from outside Japan.
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