10.25.23
Shiseido ranks at #6 on our Top Global Beauty Companies 2023 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Shiseido's Beauty Sales
$8.1 billionKey Personnel
- Masahiko Uotani, chairman and CEO
- Kentaro Fujiwara, president and COO
- Yukari Suzuki, senior executive officer, chief D&I officer
- Norio Tadakawa, CEO, Japan region
- Ron Gee, president and chief executive officer of Shiseido Americas
Shiseido's Brands
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—Ingestibles
- The Collagen
- Inryu
New Products
- Nars Light Reflecting Foundation
- Drunk Elephant B Goldi Bright Drops
- Clé de Peau The Foundation
- Elixir Lotion and Emulsion
- Sidekick Skincare for Men
Shiseido Marked Its 150th Anniversary
Shiseido marked the 150th anniversary of its founding in 2022 and celebrated an overall sales boost of 5.7% thanks to solid performances from key brands like Clé de Peau Beauté and Nars. Its fragrances also performed well.Regional year-on-year net sales figures were mixed. Japan was down -8.2%, China fell 6%, Asia Pacific was up 7%, The Americas were up 13.6%, EMEA grew 9.8%, Travel Retail grew a phenomenal 35.7%, Professional declined 38.9% and sales in the company’s “Other” segment grew a whopping 66.4%
By sales channel, prestige and premium accounted for 60% and 29% of sales, respectively. Fragrance represented 6% and Other, 5%.
In 2021, Shiseido committed to a multi-pronged restructuring and revitalization plan that included reforms and funding expenditures to transform its product, distribution, digital and R&D capacities. As a result of the plan, its skincare brands accounted for 70% of its total corporate sales in 2022, and its Americas and EMEA business were more profitable.
More 2022-2023 Highlights
In his address to shareholders, COO Kentaro Fujiwara said the company would be full steam ahead toward the goal of reaching a core operating profit margin of 15% with a 2025 milestone of 12%. He also affirmed that the company’s regionally focused investments would be in brands, innovations and people.In Japan, the company will invest aggressively in skin beauty in order to improve. In China, the challenge will be to keep pace with fierce competition by, among other things, expanding the brand portfolio. In the Asia Pacific region, which the company views as most promising, the company will lean heavily on strengthening its prestige brands. And in its Americas business, Shiseido plans to strengthen its NARS, Shiseido and Drunk Elephant brands. In EMEA, the company will promote its skincare and fragrances.
In addition, Shiseido has fully committed to becoming a “personal beauty wellness company” by 2030. In the meantime, its medium-term plan called Shift 2025 and Beyond is targeted to provide a personalized experience for consumers with the goal of making Shiseido a top global beauty contender. To that end, the company pledged to invest ¥100 billion (about $100 million) into marketing during the next three years.
Shiseido's Sustainability Efforts
On the sustainability front, Shiseido affirmed that its medium-to-long term targets were on track, with the ultimate goal of going carbon neutral at all its sites by 2026.What’s more, the company is 64% closer to its ultimate goal of developing sustainable products with sustainable packaging 2025, and is closing in on its goal of using 100% sustainable paper by 2023.
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%.
And in a November 2022 announcement, Shiseido said Masahiko Uotani, the-then president and CEO, would be appointed chairman and CEO. Kentaro Fujiwara would also be promoted to president and COO beginning on January 1, 2023. Uotani will then retire as CEO at the end of 2024.
Looking Ahead
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 sales in the Americas and EMEA remained strong.In Q2 2023, like-for-like YoY sales increased 9% thanks again to the brands mentioned above.
See Next: Beiersdorf is #7 on our Top Global Beauty Companies 2023 Report.