Jamie Matusow, Editor-in-Chief11.02.15
Update: Shiseido ranks at #5 on our latest report Top 20 Global Beauty Companies 2021.
Japan
www.shiseido.com
Beauty Sales: $6.5 billion
Key Personnel: Masahiko Uotani, president and chief executive officer; Chikako Sekine, chief beauty officer; Yoichi Shimatani, chief research and development officer; Jean-Philippe Charrier, president, Asia Pacific; Norio Iwasaki, senior vice president, personal care brands, Japan; Naoki Murakami, senior vice president, prestige brands, Japan; Yoshiaki Okabe, Shiseido brand director; Mikiko Soejima, senior vice president, beauty, Japan; Shigekazu Sugiyama, senior vice president, cosmetics, Japan; Mari Tamura, senior vice president, global prestige brands; Marc Rey, president & CEO, Shiseido Americas; Louis Desazars, president & CEO, Shiseido Europe.
Major Products/Brands: Skin care, color cosmetics, sun care, fragrances and personal care marketed under brand names including Shiseido, Clé de Peau Beauté, Za, Tsubaki, Senka, Sea Breeze, Jean Paul Gaultier, Narciso Rodriguez, Elixir Superieur, Prior, Urara, MAQuillAGE, Issey Miyake, Benefique, Nars, Bare Escentuals, Decléor, Carita, Beauté Prestige International.
New Products: Shiseido Ultimune Power Infusing Concentrate 1&2, Clé de Peau Beauté Synactif Eye Care Ritual, Za True White Ex Perfect Protector, Za Perfect Solution Serum, MAQuillAGE Dramatic Melting Rouge Lipstick, Nars Audacious Mascara, Nars Liquid Gold Face Set, Bare Escentuals Bareskin Pure Brightening Serum Foundation.
Comments: Shiseido has been busy with lots of executive personnel changes as president and chief executive officer Masahiko Uotani continues to implement his ambitious Vision 2020 plan, which he created and set into effect shortly after his arrival at the company. Uotani believes that Shiseido’s stalled position in the global market hinges on the company’s failure to stay relevant with constantly changing consumers and markets—and has created an aggressive consumer-focused plan and a hefty investment in advertising/marketing to bring the company to a greater position in global beauty. There will also be a shift toward key products, as Uotani said, “Our inefficient organization also diluted our brand portfolio with too many products and brands.”
Further, in commenting on 2014 sales, he reiterated his five-year plan, saying, “Shiseido must do everything possible to reverse the long-term market share decline of its business in Japan to remain vital for the next 100 years. Our mission is to be number one in Japan by 2020. We will implement radical reforms to ensure all activities are totally consumer-oriented to once again be the Shiseido that consumers support. We will build the foundation to achieve these goals during the three years beginning 2015.”
For FY 2015, Shiseido reported sales of $6.5 billion. Domestic sales reached $2.8 billion, a decrease of 3% over the previous year. Global sales increased 6.4% to come in at $3.6 billion, a new record, and on target with gradually tipping the sales ratio in the global direction—this year it hit 53% of sales. (The increase was partially due to the depreciation of the yen). Domestic Cosmetics, however, continued to slump, mostly due to weakening demand as a result of Japan’s consumption tax. By region, sales were highest in Asia and Oceania, which includes Shiseido’s China business.
The revitalization and introduction of brands led to stronger domestic sales of mid-priced and high-priced products. Sales also showed an increase in October 2014, when cosmetics were added to the list of items available free of consumption tax for overseas tourists visiting Japan. The ICHIGAN Project, which involved all employees, from R&D to sales, in a united effort to deliver brand value to consumers, was credited for growth in a number of beauty products, including Prior, a brand for “mature” women.
High-end brand Clé de Peau Beaute also performed well, emphasizing the trend that Shiseido’s high-priced items continue to gain ground, while its mid- and lower- priced brands suffer from increased competition.
In the Americas, both Nars and the fragrance business did well. Other contributors to sales growth included Shiseido, thanks especially to the launch of Ultimune Beauty Serum, and bareMinerals, with BareSkin, its first liquid foundation.
In Europe, Germany and Italy were weak due to challenging market conditions. However, Narciso Rodriguez and other designer fragrance brands performed well.
In China, which Shiseido says is its top-priority market, the focus was on consumer marketing and key brands in the portfolio. Shiseido said that while sales in China have fallen, they now have a concrete plan in place to achieve growth going forward.
Indonesia proved to be a hot spot as far as success in emerging countries.
News of Note
In June, Shiseido signed on to distribute Burberry makeup and fragrance products across Japan. Shiseido has been the sole distributor of Burberry fragrances in several countries through its subsidiary Beauté Prestige International, which is known for luxury brand fragrances.
Changes in executive management came in a spurt this past summer. In June, Louis Desazars, formerly president and CEO of Nars Cosmetics, was appointed president & CEO of Shiseido Europe Region (Europe, Africa and Middle East). Barbara Calcagni, former senior vice president, global marketing at Nars, succeeded Desazars as president of the brand.
In August, Shiseido announced the appointment of Marc Rey as president & CEO of Shiseido Americas, with the additional global brand responsibilities for Nars and Bare Escentuals. He replaced Heidi Manheimer who left the company.
Shiseido continues with its success in prestige fragrances, most recently launching Shiseido Ever Bloom in 32 countries throughout Europe and the Middle East. According to the parent company, fragrance accounts for 50% of all beauty sales in Europe.
Looking Ahead: Based on a moderate recovery of its domestic business and its strong efforts in China, Shiseido forecasts that consolidated net sales will increase 7.8% year on year. In Europe, they expect conditions in the cosmetics market to remain difficult due to the economy. In The Americas, however, the cosmetics market is expected to maintain moderate growth.
Japan
www.shiseido.com
Beauty Sales: $6.5 billion
Key Personnel: Masahiko Uotani, president and chief executive officer; Chikako Sekine, chief beauty officer; Yoichi Shimatani, chief research and development officer; Jean-Philippe Charrier, president, Asia Pacific; Norio Iwasaki, senior vice president, personal care brands, Japan; Naoki Murakami, senior vice president, prestige brands, Japan; Yoshiaki Okabe, Shiseido brand director; Mikiko Soejima, senior vice president, beauty, Japan; Shigekazu Sugiyama, senior vice president, cosmetics, Japan; Mari Tamura, senior vice president, global prestige brands; Marc Rey, president & CEO, Shiseido Americas; Louis Desazars, president & CEO, Shiseido Europe.
Major Products/Brands: Skin care, color cosmetics, sun care, fragrances and personal care marketed under brand names including Shiseido, Clé de Peau Beauté, Za, Tsubaki, Senka, Sea Breeze, Jean Paul Gaultier, Narciso Rodriguez, Elixir Superieur, Prior, Urara, MAQuillAGE, Issey Miyake, Benefique, Nars, Bare Escentuals, Decléor, Carita, Beauté Prestige International.
New Products: Shiseido Ultimune Power Infusing Concentrate 1&2, Clé de Peau Beauté Synactif Eye Care Ritual, Za True White Ex Perfect Protector, Za Perfect Solution Serum, MAQuillAGE Dramatic Melting Rouge Lipstick, Nars Audacious Mascara, Nars Liquid Gold Face Set, Bare Escentuals Bareskin Pure Brightening Serum Foundation.
Comments: Shiseido has been busy with lots of executive personnel changes as president and chief executive officer Masahiko Uotani continues to implement his ambitious Vision 2020 plan, which he created and set into effect shortly after his arrival at the company. Uotani believes that Shiseido’s stalled position in the global market hinges on the company’s failure to stay relevant with constantly changing consumers and markets—and has created an aggressive consumer-focused plan and a hefty investment in advertising/marketing to bring the company to a greater position in global beauty. There will also be a shift toward key products, as Uotani said, “Our inefficient organization also diluted our brand portfolio with too many products and brands.”
Shiseido’s Ultimune Power Infusing Concentrate helped sales in The Americas.
For FY 2015, Shiseido reported sales of $6.5 billion. Domestic sales reached $2.8 billion, a decrease of 3% over the previous year. Global sales increased 6.4% to come in at $3.6 billion, a new record, and on target with gradually tipping the sales ratio in the global direction—this year it hit 53% of sales. (The increase was partially due to the depreciation of the yen). Domestic Cosmetics, however, continued to slump, mostly due to weakening demand as a result of Japan’s consumption tax. By region, sales were highest in Asia and Oceania, which includes Shiseido’s China business.
The revitalization and introduction of brands led to stronger domestic sales of mid-priced and high-priced products. Sales also showed an increase in October 2014, when cosmetics were added to the list of items available free of consumption tax for overseas tourists visiting Japan. The ICHIGAN Project, which involved all employees, from R&D to sales, in a united effort to deliver brand value to consumers, was credited for growth in a number of beauty products, including Prior, a brand for “mature” women.
High-end brand Clé de Peau Beaute also performed well, emphasizing the trend that Shiseido’s high-priced items continue to gain ground, while its mid- and lower- priced brands suffer from increased competition.
In the Americas, both Nars and the fragrance business did well. Other contributors to sales growth included Shiseido, thanks especially to the launch of Ultimune Beauty Serum, and bareMinerals, with BareSkin, its first liquid foundation.
In Europe, Germany and Italy were weak due to challenging market conditions. However, Narciso Rodriguez and other designer fragrance brands performed well.
In China, which Shiseido says is its top-priority market, the focus was on consumer marketing and key brands in the portfolio. Shiseido said that while sales in China have fallen, they now have a concrete plan in place to achieve growth going forward.
Indonesia proved to be a hot spot as far as success in emerging countries.
News of Note
In June, Shiseido signed on to distribute Burberry makeup and fragrance products across Japan. Shiseido has been the sole distributor of Burberry fragrances in several countries through its subsidiary Beauté Prestige International, which is known for luxury brand fragrances.
Changes in executive management came in a spurt this past summer. In June, Louis Desazars, formerly president and CEO of Nars Cosmetics, was appointed president & CEO of Shiseido Europe Region (Europe, Africa and Middle East). Barbara Calcagni, former senior vice president, global marketing at Nars, succeeded Desazars as president of the brand.
In August, Shiseido announced the appointment of Marc Rey as president & CEO of Shiseido Americas, with the additional global brand responsibilities for Nars and Bare Escentuals. He replaced Heidi Manheimer who left the company.
Shiseido continues with its success in prestige fragrances, most recently launching Shiseido Ever Bloom in 32 countries throughout Europe and the Middle East. According to the parent company, fragrance accounts for 50% of all beauty sales in Europe.
Looking Ahead: Based on a moderate recovery of its domestic business and its strong efforts in China, Shiseido forecasts that consolidated net sales will increase 7.8% year on year. In Europe, they expect conditions in the cosmetics market to remain difficult due to the economy. In The Americas, however, the cosmetics market is expected to maintain moderate growth.
