10.18.11
5. Shiseido
Japan
www.shiseido.co.jp
Beauty Sales:
$ 8 billion
Key Personnel:
Shinzo Maeda, chairman; Hisayuki Suekawa, president & CEO; Heidi Manheimer, chief executive officer of Shiseido Cosmetics America; Patrice Bellard, president, Beaute Prestige International.
Major Brands/Products:
Prestige, masstige and drug store cosmetics, skin care and fragrance brands including Shiseido, Clé de Peau Beauté, Aupres, Maquillage, NARS, Bare Escentuals, Beauté Prestige International, Senka, Za.
New Products:
Shiseido Bio-Performance Advanced Super Revitalizing Cream, Jean Paul Gaultier Kokorico, bareMinerals Ready Eyeshadow, NARS Pago Pago lipstick, Clé de Peau Beauté cream eye color.
Comments:
While Shiseido followed suit, targeting Asia (outside Japan) for additional consumers, the Japanese company also made a big push toward expanding its markets in the Americas as well. And good progress was made, although domestic sales lagged behind expectations. Shiseido’s goal for the last few years, represented by its motto—“Building Momentum as a Global Player Representing Asia with Its Origins in Japan”—has never been stronger.
Europe, North America and China are top-of-mind locations for Shiseido in growing its prestige business. The mission was well on its way in 2010, achieving strong growth overseas, with overall sales rising 4.1% to $8 billion.
Even though Shiseido’s domestic cosmetics business declined, the region still led in sales, and was followed closely by the global market. By specific region, Japan accounted for $4.6 billion in net sales; Asia/Oceana, $1.4 billion; the Americas $1 billion; and Europe; $1 billion.
In January 2011, prior to the release of the company’s 2010 figures in March, Shiseido announced the appointments of Shinzo Maeda, its then-president & CEO to the position of chairman, and Hisayuki Suekawa, corporate executive officer, to the position of president & CEO. The changes became effective April 1, 2011, the start of the new fiscal year.
2010 marked the final year of the organization’s first three-year plan. Overseas sales increased solidly, with strong growth in China and the rest of Asia boosted by the sales of Bare Escentuals, Inc., which Shiseido acquired in 2010 for $1.8 billion. In the domestic market, some sectors such as the self-selection category showed signs of recovery. However, the mid-priced market, a critical segment for Shiseido, proved challenging.
Shiseido reported that it generated compound annual growth rates of 26% in the Americas, 11% in Asia/Oceania, and 5% in Europe. For the year ended March 2011, the overseas sales ratio increased to 42.9%. In Japan, however, sales continued to decrease. The company focused on key areas in each channel and concentrated resources. As a result, efforts proved successful at department stores and chain stores, but proved difficult with mid-priced products at drug stores and general merchandise stores.
Suekawa vowed to “achieve a domestic business turnaround and accelerate globalization to get Shiseido into a growth trajectory.”
He said that the company has launched an aggressive plan, with the goal of reaching $600 million to $1.2 billion in annual sales in each of several brands. Three brands each will be selected from the prestige (Shiseido, Clé de Peau Beauté and Bare Escentuals) and masstige categories (Za, Senka and a new launch). Focus will be on developing them as global megabrands.
In 2010, Shiseido opened a new factory in Vietnam as a base for its masstige market.
In the first quarter of 2011, Shiseido continued to struggle domestically, in part due to the disastrous earthquake and tsunami in March, as well as tax expenses. Global business again fared better than domestic, with revenue rising 15% to more than $820 million, while that in Japan advanced 2.6% to about $1.1 billion. Shiseido reported that sales in Europe and the Americas were still in recovery, while markets in Asia and other emerging areas continued to grow.
As part of Shiseido’s focus on customer service, the company responded to feedback, which resulted in a number of packaging changes to improve appearance and make products easier to understand and use. For example, Clé de Peau Beauté’s new skin care line features an easy-to-grip container design with an easy-to-push dispenser. Larger type size makes the package insert easy to read, the bottle color makes the item easy to identify, and the simple product names are easy to remember. In addition, a cream refill was added to extend use of the original container. With Haku Melanofocus, Shiseido developed a refill container that enables the user to easily see how much is remaining. Introducing the refill also reduced the amount of plastic used for containers by 60% to satisfy consumer complaints regarding wasteful packaging.
Shiseido announced that it intends to begin using sugar cane-based polyethylene from Braskem S.A.—P&G’s supplier—in cosmetics containers.
In August, Shiseido launched its first eCommerce site, to appeal to U.S. customers, and to further incorporate digital and social media into its marketing mix.
Increased sales in the coming year hold promise with several new prestige releases. Shiseido launched its new Bio-Performance Advanced Super Revitalizing Cream in September. Kokorico, Jean Paul Gaultier’s second major men’s fragrance(through Beauté Prestige International, Shiseido’s fragrance division), following Le Male 16 years ago, premiered in France and will spread globally, entering the U.S. in 2012. bareMinerals Ready Eyeshadow, a new concept in solid mineral technology, almost promises guaranteed success.
Japan
www.shiseido.co.jp
Beauty Sales:
$ 8 billion
Key Personnel:
Shinzo Maeda, chairman; Hisayuki Suekawa, president & CEO; Heidi Manheimer, chief executive officer of Shiseido Cosmetics America; Patrice Bellard, president, Beaute Prestige International.
Major Brands/Products:
Prestige, masstige and drug store cosmetics, skin care and fragrance brands including Shiseido, Clé de Peau Beauté, Aupres, Maquillage, NARS, Bare Escentuals, Beauté Prestige International, Senka, Za.
New Products:
Shiseido Bio-Performance Advanced Super Revitalizing Cream, Jean Paul Gaultier Kokorico, bareMinerals Ready Eyeshadow, NARS Pago Pago lipstick, Clé de Peau Beauté cream eye color.
Comments:
Clé dePeau Beauté gained ground atdepartment store counters. |
Europe, North America and China are top-of-mind locations for Shiseido in growing its prestige business. The mission was well on its way in 2010, achieving strong growth overseas, with overall sales rising 4.1% to $8 billion.
Even though Shiseido’s domestic cosmetics business declined, the region still led in sales, and was followed closely by the global market. By specific region, Japan accounted for $4.6 billion in net sales; Asia/Oceana, $1.4 billion; the Americas $1 billion; and Europe; $1 billion.
In January 2011, prior to the release of the company’s 2010 figures in March, Shiseido announced the appointments of Shinzo Maeda, its then-president & CEO to the position of chairman, and Hisayuki Suekawa, corporate executive officer, to the position of president & CEO. The changes became effective April 1, 2011, the start of the new fiscal year.
2010 marked the final year of the organization’s first three-year plan. Overseas sales increased solidly, with strong growth in China and the rest of Asia boosted by the sales of Bare Escentuals, Inc., which Shiseido acquired in 2010 for $1.8 billion. In the domestic market, some sectors such as the self-selection category showed signs of recovery. However, the mid-priced market, a critical segment for Shiseido, proved challenging.
Shiseido’s purchase of bareMinerals opened up new opportunities. |
Suekawa vowed to “achieve a domestic business turnaround and accelerate globalization to get Shiseido into a growth trajectory.”
He said that the company has launched an aggressive plan, with the goal of reaching $600 million to $1.2 billion in annual sales in each of several brands. Three brands each will be selected from the prestige (Shiseido, Clé de Peau Beauté and Bare Escentuals) and masstige categories (Za, Senka and a new launch). Focus will be on developing them as global megabrands.
In 2010, Shiseido opened a new factory in Vietnam as a base for its masstige market.
In the first quarter of 2011, Shiseido continued to struggle domestically, in part due to the disastrous earthquake and tsunami in March, as well as tax expenses. Global business again fared better than domestic, with revenue rising 15% to more than $820 million, while that in Japan advanced 2.6% to about $1.1 billion. Shiseido reported that sales in Europe and the Americas were still in recovery, while markets in Asia and other emerging areas continued to grow.
As part of Shiseido’s focus on customer service, the company responded to feedback, which resulted in a number of packaging changes to improve appearance and make products easier to understand and use. For example, Clé de Peau Beauté’s new skin care line features an easy-to-grip container design with an easy-to-push dispenser. Larger type size makes the package insert easy to read, the bottle color makes the item easy to identify, and the simple product names are easy to remember. In addition, a cream refill was added to extend use of the original container. With Haku Melanofocus, Shiseido developed a refill container that enables the user to easily see how much is remaining. Introducing the refill also reduced the amount of plastic used for containers by 60% to satisfy consumer complaints regarding wasteful packaging.
Shiseido announced that it intends to begin using sugar cane-based polyethylene from Braskem S.A.—P&G’s supplier—in cosmetics containers.
In August, Shiseido launched its first eCommerce site, to appeal to U.S. customers, and to further incorporate digital and social media into its marketing mix.
Increased sales in the coming year hold promise with several new prestige releases. Shiseido launched its new Bio-Performance Advanced Super Revitalizing Cream in September. Kokorico, Jean Paul Gaultier’s second major men’s fragrance(through Beauté Prestige International, Shiseido’s fragrance division), following Le Male 16 years ago, premiered in France and will spread globally, entering the U.S. in 2012. bareMinerals Ready Eyeshadow, a new concept in solid mineral technology, almost promises guaranteed success.