6. Shiseido
Japan
www.shiseido.co.jp
Beauty Sales: $6.4 billion

Key Personnel: Shinzo Maeda, president and chief executive officer; Kimie Iwata, vice president, consumer information, corporate culture, public relations, corporate culture reform and committees; Yasuhiko Harad, chief financial officer; Toshimitsu Kobayashi, corporate senior executive officer, domestics cosmetics business, sales and president and representative, Shiseido Sales Co. Ltd.

Products/Brands: Skin care, color cosmetics, sun care, fragrances, hair care and toiletries under brands including Shiseido, Decleor, IPSA, Ettusais, D’icila Parfums Issey Miyake, Parfums Jean Paul Gaultier, Parfums Narciso Rodriguez, Nars, Clé de Peau Beauté Za, Supreme Aupres.

New Products: Clé de Peau Beauté La Crèmes, Revital, Aqua Label skin care, Uno men’s skin care, Tsubaki Golden Repair hair care, Urara Makeup, Shiseido BOP intensive skin collective program, Mika Ninagawa collection.

Comments: In March, Shiseido completed a three-year plan that was initiated in April 2005 to maximize growth potential and increase profitability. Shiseido said its performance exceeded all the initial goals of the plan. The company is currently in the midst of an extensive restructuring program that aims to make it “a global player representing Asia with its origins in Japan.” While the company’s domestic cosmetics business—which accounted for over 60% of the company’s net revenues—declined 1.9%, consolidated net sales for the year ended March 31, 2008, rose 4.2% to $6.4 billion. Overseas sales, especially in China, were especially strong. China sales have been growing at 30% annually according to the company, and dedicated brands specifically aimed at Chinese consumers performed especially well in the region over the year.
 

Shiseido is focusing on its Nars color cosmetics line, pushing for Nars to become a leading makeup brand within the company.

 
With sales of prestige products, self-selection products and toiletries failing to match their previous-year levels, Shiseido worked to create “broad and strong” lines by nurturing mature brands, but struggled with the downturn of consumer sentiment and increasing competition. Reportedly, the company had more than 100 lines five years ago and has now trimmed back to about 27, including six “mega-brands.” Shiseido plans to cut further to about 21 lines.
  
In the professional division, which supplies and operates beauty salons, sales fell below the previous year’s level.
  
Sales in the overseas cosmetics business rose 17.6%, with steady sales increases in all regions, led by China. In China, Shiseido advanced its channel-specific brand strategy with a focus on Aupres, a dedicated brand for department stores, as well as Supreme Aupres, billed as an upper prestige line. In Asia, Europe and North America, Shiseido strengthened its marketing activities by zeroing in on strengths in anti-aging and skin-whitening products. During 2007, Shiseido enhanced its designer fragrances business and expanded shelf space in duty-free shops.
  
During the next decade, Shiseido aims to improve quality “across the board” from fiscal 2008 to fiscal 2010; get into a “growth trajectory” between fiscal 2011 and fiscal 2013, and make “a leap forward” in fiscal 2014. Within 10 years, Shiseido says it plans to “surpass net sales of one trillion yen (about $8.9 billion), with more than half of sales being achieved overseas.”
  
Part of its new plan will be to create a brand loved by customers throughout the world and establish an undisputed presence in Asia. The firm announced plans to continue to liquidate and withdraw from unprofitable businesses and brands, and that it would withdraw from fashion and accessories. Shiseido is focusing on its Nars color cosmetics line, pushing for Nars to become a leading makeup brand.
  
In addition, on July 1, Shiseido Co., Ltd. consolidated the business operations and assets of Shiseido Cosmetics (America) Ltd., Nars Cosmetics, Inc. and ZIC Corporation into Shiseido International Corporation, and changed the name of the company to Shiseido Americas Corporation (SAC). In October, Shiseido Co. announced that it had merged its Shiseido Europe and Shiseido France subsidiaries.