10.25.21
Update: Shiseido ranks at #5 on our latest report Top 20 Global Beauty Companies 2022.
Shiseido is #5 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Beauty Sales
$8.9 billion
Key Personnel
Masahiko Uotani, president and chief executive officer; Ron Gee, president & CEO of Shiseido Americas; Yukari Suzuki, chief brand officer, Clé de Peau Beauté, Ipsa, The Ginza and Baum; Norio Tadakawa, chief executive officer, Japan Region; Kentaro Fujiwara, chief executive officer, China Region; Yoshiaki Okabe, chief brand innovation officer; Kiyomi Horii, chief beauty strategy officer; Ryota Yukisada, chief brand officer, Shiseido
Major Products/Brands
Prestige cosmetics and fragrances including Bare Minerals, Benefique, Clé de Peau, Drunk Elephant, Ípsa, Issey Miyake, Laura Mercier, Nars, Narcisco Rodriguez, Serge Lutens, Shiseido and Tory Burch; Mid-priced cosmetics including Anessa, Aqua Label, Aupres, D Program, Elixir, Gracy, Haku, Integrate, Molica Majorca, Maquillage, Prior, Pure & Mild, Revital, Urara, Za; Professional: Shiseido professional; Health care: The Collagen; Life quality beauty: Perfect Cover Shiseido
New Products
Shiseido Pop PowderGel Eye Color, Ultimune Power Infusing Concentrate III, Vital Perfection Uplifting and Firming Cream, Nars Radiant Creamy Color Correct, Tory Burch x Shiseido Sunscreen, Ultimune Power Infusing Concentrate Floral Limited Edition, Baum skincare, Drunk Elephant C-Firma Fresh Day Serum
Comments
Although Shiseido celebrated expansions in growth for prestige brands in China and the Travel Retail Business in Asia, an increase in the skin care sales ratio stemming from the growth of skin beauty brands, and an increase in e-commerce sales, challenging global economic conditions and “stagnated” economic activity took a toll on the company’s economic performance in 2020. Net sales declined 17.8% year-on-year on a local currency basis (-18.8% year-on-year on a like-for-like basis, excluding such factors as the acquisition of Drunk Elephant).
Regionally, despite a sizable sales dip of 29.7% in Japan, Shiseido’s domestic market still accounted for 32.9% ($2.9 billion) of sales, followed by China (25.6%); Travel Retail (10.7%), EMEA (10.3%), Americas (9.9%), Asia Pacific (6.4%), Other (2.8%) and Professional (1.4%).
In Japan, Shiseido focused on consumer-oriented activities to address changes in consumer values and purchasing behavior. The emphasis was on hand creams and BB creams with staying power, even under masks. The company also took the time to strengthen its digital marketing, which drove double digit growth of e-commerce sales. But reduced foot traffic from shoppers and tourists led to a negative effect on sales.
China was similarly impacted; however prestige brands such as Shiseido, Clé de Peau Beauté, IPSA and Nars grew “significantly” as Covid-19 infections declined and the market showed signs of recovery. Net sales in China grew 9% year-on-year to $2.3 billion.
Net sales in Shiseido’s Asia Pacific business declined 15.3% year-on-year to $574.3 million despite considerable growth in e-commerce sales driven by Shiseido and Senka. Covid-19, however, blunted performances in South Korea and Thailand. Vietnam saw relatively little impact, with sales outperforming year on year due to steady recovery.
In the Americas, the company restructured its bareMinerals brand through closures of unprofitable boutiques and by strengthening the marketing behind its prestige brand Drunk Elephant – an acquisition from 2019 that also helped drive e-commerce sales. The bottom line though was an overall regional year on year sales decline of 25.7%.
In the EMEA region, e-commerce outpaced the market with strong performance turned in by Shiseido skincare as well as by the launches of Clé de Peau Beauté in Italy and Spain, and of Drunk Elephant in Germany, but COVID-19 made a heavy impact, eroding year-on-year sales 20.4%.
Shiseido’s travel retail business, which consists of cosmetics and fragrances mainly through airport and downtown duty-free stores, saw net sales fall 19.8% to $955.6 million.
2021 Highlights
In July, Shiseido announced the promotion of Ron Gee to president & CEO of Shiseido Americas. In addition to his role as CEO, Gee will continue to serve as global M&A leader for Shiseido Group. Gee previously served as interim CEO and as CFO, having held the latter position since 2016. He will continue to report to Masahiko Uotani, president and group CEO of Shiseido Company, Limited.
In August, Shiseido Americas Corporation, the company’s regional headquarters for the Americas and its consolidated subsidiary announced that it would be selling the related assets of prestige makeup brands bareMinerals, BUXOM, and Laura Mercier, thereby adhering to its “WIN 2023 and Beyond” business strategy that emphasizes skin beauty as its core category. The brands were transferred to Advent, a private equity partnership. Shiseido said it would reinvest the funds from the sale into areas crucial for long-term growth, such as development of key brands and acquisitions, mainly in the skin beauty category, digital transformation, and enhancement of production capabilities and innovations.
In September, Shiseido announced that Drunk Elephant would be available in all Ulta Beauty stores nationwide in the U.S. and online.
Looking Ahead
Despite challenging global economic conditions, Shiseido’s 2021 Q1 sales grew 7.5%; however, its outlook was cautious given that the pandemic continues to stagnate economic activity.
Read Next: Natura &Co. is #6.
Shiseido is #5 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Beauty Sales
$8.9 billion
Key Personnel
Masahiko Uotani, president and chief executive officer; Ron Gee, president & CEO of Shiseido Americas; Yukari Suzuki, chief brand officer, Clé de Peau Beauté, Ipsa, The Ginza and Baum; Norio Tadakawa, chief executive officer, Japan Region; Kentaro Fujiwara, chief executive officer, China Region; Yoshiaki Okabe, chief brand innovation officer; Kiyomi Horii, chief beauty strategy officer; Ryota Yukisada, chief brand officer, Shiseido
Major Products/Brands
Prestige cosmetics and fragrances including Bare Minerals, Benefique, Clé de Peau, Drunk Elephant, Ípsa, Issey Miyake, Laura Mercier, Nars, Narcisco Rodriguez, Serge Lutens, Shiseido and Tory Burch; Mid-priced cosmetics including Anessa, Aqua Label, Aupres, D Program, Elixir, Gracy, Haku, Integrate, Molica Majorca, Maquillage, Prior, Pure & Mild, Revital, Urara, Za; Professional: Shiseido professional; Health care: The Collagen; Life quality beauty: Perfect Cover Shiseido
New Products
Shiseido Pop PowderGel Eye Color, Ultimune Power Infusing Concentrate III, Vital Perfection Uplifting and Firming Cream, Nars Radiant Creamy Color Correct, Tory Burch x Shiseido Sunscreen, Ultimune Power Infusing Concentrate Floral Limited Edition, Baum skincare, Drunk Elephant C-Firma Fresh Day Serum
Comments
Although Shiseido celebrated expansions in growth for prestige brands in China and the Travel Retail Business in Asia, an increase in the skin care sales ratio stemming from the growth of skin beauty brands, and an increase in e-commerce sales, challenging global economic conditions and “stagnated” economic activity took a toll on the company’s economic performance in 2020. Net sales declined 17.8% year-on-year on a local currency basis (-18.8% year-on-year on a like-for-like basis, excluding such factors as the acquisition of Drunk Elephant).
Regionally, despite a sizable sales dip of 29.7% in Japan, Shiseido’s domestic market still accounted for 32.9% ($2.9 billion) of sales, followed by China (25.6%); Travel Retail (10.7%), EMEA (10.3%), Americas (9.9%), Asia Pacific (6.4%), Other (2.8%) and Professional (1.4%).
In Japan, Shiseido focused on consumer-oriented activities to address changes in consumer values and purchasing behavior. The emphasis was on hand creams and BB creams with staying power, even under masks. The company also took the time to strengthen its digital marketing, which drove double digit growth of e-commerce sales. But reduced foot traffic from shoppers and tourists led to a negative effect on sales.
China was similarly impacted; however prestige brands such as Shiseido, Clé de Peau Beauté, IPSA and Nars grew “significantly” as Covid-19 infections declined and the market showed signs of recovery. Net sales in China grew 9% year-on-year to $2.3 billion.
Net sales in Shiseido’s Asia Pacific business declined 15.3% year-on-year to $574.3 million despite considerable growth in e-commerce sales driven by Shiseido and Senka. Covid-19, however, blunted performances in South Korea and Thailand. Vietnam saw relatively little impact, with sales outperforming year on year due to steady recovery.
In the Americas, the company restructured its bareMinerals brand through closures of unprofitable boutiques and by strengthening the marketing behind its prestige brand Drunk Elephant – an acquisition from 2019 that also helped drive e-commerce sales. The bottom line though was an overall regional year on year sales decline of 25.7%.
In the EMEA region, e-commerce outpaced the market with strong performance turned in by Shiseido skincare as well as by the launches of Clé de Peau Beauté in Italy and Spain, and of Drunk Elephant in Germany, but COVID-19 made a heavy impact, eroding year-on-year sales 20.4%.
Shiseido’s travel retail business, which consists of cosmetics and fragrances mainly through airport and downtown duty-free stores, saw net sales fall 19.8% to $955.6 million.
2021 Highlights
In July, Shiseido announced the promotion of Ron Gee to president & CEO of Shiseido Americas. In addition to his role as CEO, Gee will continue to serve as global M&A leader for Shiseido Group. Gee previously served as interim CEO and as CFO, having held the latter position since 2016. He will continue to report to Masahiko Uotani, president and group CEO of Shiseido Company, Limited.
In August, Shiseido Americas Corporation, the company’s regional headquarters for the Americas and its consolidated subsidiary announced that it would be selling the related assets of prestige makeup brands bareMinerals, BUXOM, and Laura Mercier, thereby adhering to its “WIN 2023 and Beyond” business strategy that emphasizes skin beauty as its core category. The brands were transferred to Advent, a private equity partnership. Shiseido said it would reinvest the funds from the sale into areas crucial for long-term growth, such as development of key brands and acquisitions, mainly in the skin beauty category, digital transformation, and enhancement of production capabilities and innovations.
In September, Shiseido announced that Drunk Elephant would be available in all Ulta Beauty stores nationwide in the U.S. and online.
Looking Ahead
Despite challenging global economic conditions, Shiseido’s 2021 Q1 sales grew 7.5%; however, its outlook was cautious given that the pandemic continues to stagnate economic activity.
Read Next: Natura &Co. is #6.