08.01.23
Japan
www.corp.shiseido.com
Sales: $8.2 billion
Key Personnel: Masahiko Uotani, chairman and chief executive officer; Kentaro Fujiwara, president and chief operating officer; Yukari Suzuki, senior executive officer, chief D&I officer; Norio Tadakawa, chief executive officer, Japan region; Takayuki Yokota, chief financial officer; Yoshiaki Okabe, chief innovation officer and chief brand innovation officer; Maria Chiclana, chief legal officer and global general counsel; Mizuki Hashimoto, chief brand officer, Clé de Peau Beauté; Angelica Munson, chief digital officer; Kenichi Saito, chief quality officer; Antonios Spiliotopoulos, chief supply network officer; Tomoko Tagami, chief corporate communication officer; Atsunori Takano, chief information technology officer; Yosuke Tojo, chief technology officer; Toshinobu Umetsu, chief executive officer, China Region; Naomi
Yamamoto, chief creative officer
Major Products: Prestige—Shiseido, Clé de Peau, Nars, Ípsa, Drunk Elephant, The Ginza, Baum, Benefique, Effectim, Ulé; Premium—Elixir, Anessa, d Program, Haku, Maquiillage, Aqualabel, Prior, Revital, Aupres, Sidekick; Fragrance—Issey Miyake, Narciso Rodriguez, Serge Lutens, Tory Burch; Inner Beauty—The Collagen, Inryu; Life quality beauty brands
New Products: Nars Light Reflecting Foundation, Clé de Peau The Foundation
Comments: Sales rose nearly 6% last year. Top brands like Clé de Peau Beauté and Nars, along with fragrance, posted good gains. In contrast, most skin care brands struggled navigating headwinds in Japan and China.
Shiseido is in the middle of a restructuring plan that puts the focus on skin care. As a result, skin care now accounts for 70% of corporate sales. At the same time, Shiseido boosted profitability in the Americas and EMEA. Corporate-wide the goal is to reach a core operating margin of 15% by 2027. Shorter term, the goal is to reach 12% by 2025.
The company’s commitment to skin care is already paying benefits. Makeup brand Nars utilized Shiseido’s vast skin care knowledge to create Light Reflecting Foundation. It became the No. 1 best-selling product in the US prestige beauty market.
While everyone is making ESG commitments for 2030 and beyond, Shiseido goes farther. It is determined to become a “personal beauty wellness company” by the start of the new decade. At the same time, Shiseido put a medium-term plan in place called Shift 2025 and Beyond. The company is investing ¥100 billion (about $100 million) into marketing during the next three years.
The new year created new leadership at the top. Kentaro Fujiwara was appointed president and COO. Masahiko Uotani became chairman and CEO.
“The reasons for choosing Mr. Fujiwara as president and COO include his experience in the global management, particularly in the China business, his charisma, and his ability to make tough decisions as a leader,” explained Uotani.
“However, most importantly, having worked with him directly for eight years, I feel that he is a trustworthy and capable person to whom I can entrust the future of Shiseido.”
Uotani is scheduled to step down as CEO at the end of 2024.
For his part, Fujiwara said a bottom-up approach is paramount, as everything Shiseido does begins with delighting consumers.
“It is crucial for the people closest to them in each region and brand to show their creativity and enjoy their work proactively,” said Fujiwara, who said he experienced that first-hand when restructuring Shiseido’s Korea business.
By sales channel, prestige and premium accounted for 60% and 29% of sales, respectively. Fragrance represented 6% and Other, 5%. By region, China accounted for 24.2% of sales, followed by Japan, 22.3%; Travel retail, 15.3%; Americas, 12.9%; EMEA, 12.0%; Asia Pacific, 6.4%; Other, 6.0%; and Professional, 0.9%.
In March, Shiseido began offering cosmetic packaging made with Amcor’s LiquiForm technology, which is said to reduce plastic packaging and CO2 emissions by 70%.
For Q1 2023, sales rose 2.6%. Gains were led by Shiseido, Clé de Peau Beauté, Nars and Drunk Elephant. Shiseido said sales continue to recover in Japan and China while the Americas and EMEA remained strong.
Soon to open at its HQ in Ginza is Shiseido Future University. It will develop new leaders, according to the company.
www.corp.shiseido.com
Sales: $8.2 billion
Key Personnel: Masahiko Uotani, chairman and chief executive officer; Kentaro Fujiwara, president and chief operating officer; Yukari Suzuki, senior executive officer, chief D&I officer; Norio Tadakawa, chief executive officer, Japan region; Takayuki Yokota, chief financial officer; Yoshiaki Okabe, chief innovation officer and chief brand innovation officer; Maria Chiclana, chief legal officer and global general counsel; Mizuki Hashimoto, chief brand officer, Clé de Peau Beauté; Angelica Munson, chief digital officer; Kenichi Saito, chief quality officer; Antonios Spiliotopoulos, chief supply network officer; Tomoko Tagami, chief corporate communication officer; Atsunori Takano, chief information technology officer; Yosuke Tojo, chief technology officer; Toshinobu Umetsu, chief executive officer, China Region; Naomi
Yamamoto, chief creative officer
Major Products: Prestige—Shiseido, Clé de Peau, Nars, Ípsa, Drunk Elephant, The Ginza, Baum, Benefique, Effectim, Ulé; Premium—Elixir, Anessa, d Program, Haku, Maquiillage, Aqualabel, Prior, Revital, Aupres, Sidekick; Fragrance—Issey Miyake, Narciso Rodriguez, Serge Lutens, Tory Burch; Inner Beauty—The Collagen, Inryu; Life quality beauty brands
New Products: Nars Light Reflecting Foundation, Clé de Peau The Foundation
Comments: Sales rose nearly 6% last year. Top brands like Clé de Peau Beauté and Nars, along with fragrance, posted good gains. In contrast, most skin care brands struggled navigating headwinds in Japan and China.
Shiseido is in the middle of a restructuring plan that puts the focus on skin care. As a result, skin care now accounts for 70% of corporate sales. At the same time, Shiseido boosted profitability in the Americas and EMEA. Corporate-wide the goal is to reach a core operating margin of 15% by 2027. Shorter term, the goal is to reach 12% by 2025.
The company’s commitment to skin care is already paying benefits. Makeup brand Nars utilized Shiseido’s vast skin care knowledge to create Light Reflecting Foundation. It became the No. 1 best-selling product in the US prestige beauty market.
While everyone is making ESG commitments for 2030 and beyond, Shiseido goes farther. It is determined to become a “personal beauty wellness company” by the start of the new decade. At the same time, Shiseido put a medium-term plan in place called Shift 2025 and Beyond. The company is investing ¥100 billion (about $100 million) into marketing during the next three years.
The new year created new leadership at the top. Kentaro Fujiwara was appointed president and COO. Masahiko Uotani became chairman and CEO.
“The reasons for choosing Mr. Fujiwara as president and COO include his experience in the global management, particularly in the China business, his charisma, and his ability to make tough decisions as a leader,” explained Uotani.
“However, most importantly, having worked with him directly for eight years, I feel that he is a trustworthy and capable person to whom I can entrust the future of Shiseido.”
Uotani is scheduled to step down as CEO at the end of 2024.
For his part, Fujiwara said a bottom-up approach is paramount, as everything Shiseido does begins with delighting consumers.
“It is crucial for the people closest to them in each region and brand to show their creativity and enjoy their work proactively,” said Fujiwara, who said he experienced that first-hand when restructuring Shiseido’s Korea business.
By sales channel, prestige and premium accounted for 60% and 29% of sales, respectively. Fragrance represented 6% and Other, 5%. By region, China accounted for 24.2% of sales, followed by Japan, 22.3%; Travel retail, 15.3%; Americas, 12.9%; EMEA, 12.0%; Asia Pacific, 6.4%; Other, 6.0%; and Professional, 0.9%.
In March, Shiseido began offering cosmetic packaging made with Amcor’s LiquiForm technology, which is said to reduce plastic packaging and CO2 emissions by 70%.
For Q1 2023, sales rose 2.6%. Gains were led by Shiseido, Clé de Peau Beauté, Nars and Drunk Elephant. Shiseido said sales continue to recover in Japan and China while the Americas and EMEA remained strong.
Soon to open at its HQ in Ginza is Shiseido Future University. It will develop new leaders, according to the company.