10.28.10
8. Shiseido
Japan
www.shiseido.com
Corporate Sales: $6.9 billion
Key Personnel: Shinzo Maeda, president and chief executive officer; Tatsuomi Takamori, managing executive officer, director of domestic cosmetics business; Yu Okazawa, executive officer, director of international sales.
Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries, sold under brand names including Bénéfique, clé de peau Beauté, Tsubaki, Joico, Decleor, Nars, Narcisco Rodriguez, Aupres, Bare Escentuals.
New Products: Uno Fog Bar, Senka Skin Lotion Made from Moisturizing Cream, Shiseido luminizing eye contour trio.
Comments: Now in the midst of a three-year plan to get on a growth curve for the next one starting in 2011, Shiseido holds firm to its goals: to become a global player representing Asia with its origins in Japan. Despite its sluggish fiscal year, in which corporate sales dipped 6.7%, the firm has set out on a major expansion program, preparing for growth, by opening facilities throughout Asia and acquiring the highly successful Bare Escentuals brand. Through its Beauté Prestige International division in the U.S., Shiseido sold the John Varvatos brand of fragrances to Elizabeth Arden, and signed on to a long-term licensing deal with upscale perfumery house Annick Goutal.
While efforts remained strong, the economy did not cooperate. In Japan, consumption continued to decrease. Through concentrated efforts, sales fared well in chain and department stores, but proved unsatisfactory in general merchandise stores and drug stores. High-priced counseling cosmetics large-ly outperformed the overall market but mid-priced counseling and low-priced self-selection products were down year on year. Outside of Japan, the company focused on its key global brand, Shiseido.
Overall, domestic cosmetic sales accounted for 83.8% of sales. However, in the year ended March 2010, it had shrunk an additional 3-4% over the previous year. In response, Shiseido targeted stores and brands/lines to strengthen sales in each channel, and implemented focused initiatives.
Even stronger overseas, cosmetics were responsible for 88.5% of sales. In overseas cosmetics markets, Shiseido is strong in China and the rest of Asia. In Europe and North America, Shiseido is boosting its presence as a prestige skin care line, and subsidiary Beauté Prestige International S.A. has designer fragrance brands that are strong in Europe.
Outside Japan, sales rose 3% as sales in Europe and North America began to rebound in the fourth quarter. In Asia, sales were up on continuing strength in China. In May 2009 Shiseido entered Africa for the first time.
Shiseido is aiming to develop a strong masstige business in Asia during its next three-year plan. In preparation, it expanded the areas in which it sells Za and Majolica Majorca, and raised sales of these products. Its new global production plant in Vietnam, its 15th worldwide, will prove key to masstige success, as Vietnam is situated at the heart of Southeast Asia, and will thus reduce the cost and time for shipments to the other countries of Asia.
Hoping to meet a wider range of customer needs during the next fiscal year, in March 2010, Shiseido added a number of products in the hair care segment.
In June, Shinzo Maeda, president and chief executive officer announced that the forecast for net sales for the year ending March 2011 will increase 9.4% year on year to $8.5 billion, “including the impact from adding Bare Escentuals to the scope of consolidation.”
Japan
www.shiseido.com
Corporate Sales: $6.9 billion
Key Personnel: Shinzo Maeda, president and chief executive officer; Tatsuomi Takamori, managing executive officer, director of domestic cosmetics business; Yu Okazawa, executive officer, director of international sales.
Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries, sold under brand names including Bénéfique, clé de peau Beauté, Tsubaki, Joico, Decleor, Nars, Narcisco Rodriguez, Aupres, Bare Escentuals.
New Products: Uno Fog Bar, Senka Skin Lotion Made from Moisturizing Cream, Shiseido luminizing eye contour trio.
Comments: Now in the midst of a three-year plan to get on a growth curve for the next one starting in 2011, Shiseido holds firm to its goals: to become a global player representing Asia with its origins in Japan. Despite its sluggish fiscal year, in which corporate sales dipped 6.7%, the firm has set out on a major expansion program, preparing for growth, by opening facilities throughout Asia and acquiring the highly successful Bare Escentuals brand. Through its Beauté Prestige International division in the U.S., Shiseido sold the John Varvatos brand of fragrances to Elizabeth Arden, and signed on to a long-term licensing deal with upscale perfumery house Annick Goutal.
While efforts remained strong, the economy did not cooperate. In Japan, consumption continued to decrease. Through concentrated efforts, sales fared well in chain and department stores, but proved unsatisfactory in general merchandise stores and drug stores. High-priced counseling cosmetics large-ly outperformed the overall market but mid-priced counseling and low-priced self-selection products were down year on year. Outside of Japan, the company focused on its key global brand, Shiseido.
Overall, domestic cosmetic sales accounted for 83.8% of sales. However, in the year ended March 2010, it had shrunk an additional 3-4% over the previous year. In response, Shiseido targeted stores and brands/lines to strengthen sales in each channel, and implemented focused initiatives.
Even stronger overseas, cosmetics were responsible for 88.5% of sales. In overseas cosmetics markets, Shiseido is strong in China and the rest of Asia. In Europe and North America, Shiseido is boosting its presence as a prestige skin care line, and subsidiary Beauté Prestige International S.A. has designer fragrance brands that are strong in Europe.
Outside Japan, sales rose 3% as sales in Europe and North America began to rebound in the fourth quarter. In Asia, sales were up on continuing strength in China. In May 2009 Shiseido entered Africa for the first time.
Shiseido is aiming to develop a strong masstige business in Asia during its next three-year plan. In preparation, it expanded the areas in which it sells Za and Majolica Majorca, and raised sales of these products. Its new global production plant in Vietnam, its 15th worldwide, will prove key to masstige success, as Vietnam is situated at the heart of Southeast Asia, and will thus reduce the cost and time for shipments to the other countries of Asia.
Hoping to meet a wider range of customer needs during the next fiscal year, in March 2010, Shiseido added a number of products in the hair care segment.
In June, Shinzo Maeda, president and chief executive officer announced that the forecast for net sales for the year ending March 2011 will increase 9.4% year on year to $8.5 billion, “including the impact from adding Bare Escentuals to the scope of consolidation.”