Below is a look at the company's 2020 highlights, recent acquisitions, best-selling brands, and latest innovations.
- Masahiko Uotani, president and chief executive officer
- Kentaro Fujiwara, chief executive officer, Shiseido China
- Ron Gee, chief executive officer, Shiseido Americas
- Franck Marilly, chief executive officer, Shiseido Europe, Middle East and Africa
- Philippe Lesne, chief executive officer, Shiseido travel retail
- Yaël Tuil, vice president Global Fragrance Business Excellence, Shiseido EMEA
- Audrey Briotet, vice president Global Fragrance Brands
- Shiseido, Clé de Peau Beauté, BareMinerals
- Buxom, Nars, Ipsa
- Laura Mercier, Benefique, Dolce & Gabbana
- Issey Miyake and Narciso Rodriguez
- Elixir, Maquillage, Haku
- Prior, Anessa, Aqualabel
- Integrate, D Program, Aupres
- Urara, Pure & Mild, Za
- Senka, Tsubaki, Sea Breeze
- Shiseido and Joico, MatchCo.
- Dolce&Gabbana fragrance
- Optune IoT personalized skin care
- Medicated Cate-Hybrid Foundation
- Nars Extreme Effects Eyeshadow Palette
- Acquisition: Drunk Elephant
Shiseido’s continued investment in its prestige brands paid off in 2019. The business unit accounted for a whopping 46% of Shiseido’s total sales and delivered a much welcomed, 3.4% boost in the company’s overall year-on-year consolidated net sales. In fact, Prestige sales grew 10% in 2019, followed by Fragrance with 10% of sales and +9% growth, Cosmetics with 30% of sales and +3% growth, Personal Care with 9% and +6% growth, and Professional with 1% of total sales and +6% growth.
Regionally, Shiseido achieved growth across most of its major markets. Despite relatively flat demand for cosmetics in Japan, Shiseido managed a modest 0.6% year-on-year sales growth thanks to strong performances turned in by SHISEIDO, the serum Ultimune and foundation products, HAKU and d program. The company also capitalized on China’s high demand for beauty products, turning in a 13% sales increase hinged on the sales growth of its prestige SHISEIDO, Clé de Peau Beauté, IPSA and NARS brands, as well as its cosmetics ELIXIR and ANESSA brands. Its Americas business was the lone region with a reported sales decrease (-5.6%) and the company pledged strengthening efforts that include the closing of unprofitable bareMinerals boutiques, concluding a licensing agreement with Tory Burch and acquiring prestige skin care brand, Drunk Elephant.
The Drunk Elephant deal, closed in November 2019 for a reported $825 million, came after a tug-of-war with Estée Lauder and Unilever. Drunk Elephant was founded by Tiffany Masterson as a solutions-oriented, cross-generational brand for all skin types, and has experienced exponential growth across a full range of consumer demographics, including Gen Z and Millennials since its founding in 2012 According to the brand, its “curated assortment of iconic hero products use biocompatible ingredients that directly benefit the skin’s health and support the integrity and effectiveness of the formulations”—and its playful brand voice, and strong community engagement have helped to build a loyal following. Masterson has remained with the brand as president and chief creative officer.
In May 2020, Shiseido announced a Q1 net profit plunge of 17%. Sales most notably fell in Japan (-21%) as well as in China (-12%). The company pointed to Covid-19-related closures of 70% of Chinese retailers from January to March, but by the end of March, over 90% had resumed operations. Sales also experienced similar declines in Asia-Pacific (-19.2%) and in The Americas (-19%). New fragrance launches by Dolce & Gabbana helped buoy January sales in EMEA, but quarterly sales still declined almost15%.
Commenting on the future, president and CEO Masahiko Uotani, said, “Going forward, business results are still subject to uncertainties, such as the viral spread and the timing of resumption of economic activities due to regulatory measures taken by each country. It is currently very difficult to assess trends and the impact of these uncertainties.”
A silver lining among the uncertainty was the June opening of a new “Beauty Square” facility targeting Japanese Millennials. Located on the first floor of the With Harajuku commercial complex in front of Harajuku Station, the facility offers cosmetics and other services including digital experience-based content and a hair and makeup salon where Shiseido hair and makeup artists offer beauty for visitors.
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