Shiseido Company, Limited

Shiseido Company, Limited Overview

Company Headquarters: Tokyo, Japan

Founded: 1872

Workforce: ~ 40,484

Company Working: Shiseido Company, Limited (Shiseido) is engaged in the production and sale of cosmetics for men and women. Its product portfolio includes an array of make-up and skin care products, beauty salon products, toiletries, pharmaceuticals, fine chemicals, and foodstuffs. The company operates through Japan, China, Asia-Pacific, the Americas, Europe, the Middle East, and Africa (EMEA), travel retail, professional, and other segments including restaurants business, beauty salons business, education business, and childcare business. These segments products are sold under various brands like fragrance, cosmetics, and personal care products are sold under brands such as MAQUILLAGE, clé de peau BEAUTÉ, Shiseido, urara, ELIXIR, AUPRES, TSUBAKI, Za, and narciso rodriguez in each corresponding region. The Travel Retail segment sells its products under brands bareMinerals, Shiseido, clé de peau BEAUTÉ, and NARS in airport duty-free shops excluding Japan. The Professional segment manages the sales of beauty products in China, Japan, and Asia. The Others segment handles the development and frontier science business. It has a presence in over 120 countries and operates ten production sites and eight research and development centers. Elixir, Anessa, Haku, Revital, Prior, and Integrate are some of the key cosmetic brands of the company. The company also has various subsidiaries few of them are Shiseido Japan Co., Ltd., Shiseido International Inc., THE GINZA Co., Ltd., Shiseido Pharmaceutical Co., Ltd., Shiseido Beauty Salon Co., Ltd., Japan Retail Innovation Co., Ltd., Shiseido Astech Co., Ltd., Shiseido Creative Co., Ltd., and various others. The company has around 12 production sites, and 6 research and development centers, and received approx. 29 awards at IFSCC congresses and conferences.

Strategy

Shiseido developed the new SHIFT 2025 and beyond, which is focused on a three-year strategy from 2023 to 2025. The company is focused on the implementation of reforms that will improve sustainable sales growth and profitability, striving to become a Personal Skin Beauty ＆ Wellness Company. The company has been also focused on long-term growth, by strengthening the investment in three areas that is innovations, brands, and people & plans to achieve an operating margin of 12% by 2025. The selection and concentration of brand businesses, acceleration of digitalization and new business development, new value creation through innovation, talent and organization development, and a new global management model. The company will also further build-up collaboration between research centers in each region by taking advantage of the company's global structure. The company will develop R＆D operations, such as expanding research areas and developing consumer benefits.

Company Snapshot

$7,263M

Revenue

40,484

Employees

1872

Founded

Tokyo, Japan

Headquarters

SWOT Analysis

Strengths

Strong focus on targeted offerings
Strong brand name & recall globally
Diversified solution portfolio of products
Revived blockbuster credentials in the recent years
Financial stability
Wide geographic presence
Large production capacity
The company develops, produces and distributes cosmetics, health and beauty care products.
Wide range of product portfolio such as skincare products, shampoo and hair care products, body care products, fragrances, styling products, hair color products, perm products and cosmetics.

Weaknesses

High financial debt
Dependent of Japan market more
The company is lacking behind when it comes to e-commerce presence.

Opportunities

Acquisitions and joint ventures with regional distributors
Expansion in untapped regions
Expansion in untapped markets such as Latin America and the Middle East & Africa
Launching of new and innovative product by investing more on R&D research.
Grabbing the opportunity of strategic merger & acquisitions regards to the market

Threats

Availability of counterfeit ptoducts
Availability of counterfeit products
Fluctuating foreign currency exchange rates
Competition from low-cost cosmetic brands.
Consumer preferences in the cosmetics industry can be highly unpredictable, and changes in trends or customer demands can quickly disrupt sales and revenue

Key Developments

Date	Approach	Development
October 2019	Partnership	Clé De Peau Beauté, a brand of Shiseido, announced a multi-year global partnership with UNICEF towards UNICEF’s education, employment, and empowerment programs.
May 2019	Partnership	Shiseido and A.S. Watson Group, one of the world’s largest international health and beauty retailer, entered a strategic alliance to form a three-year plan to strengthen their strategic partnership and co-create beauty innovations to meet the customers’ surging demand for Japanese-beauty products better.
May 2019	Expansion	The company established the Japanese Beauty Institute. Thus, it strengthened its position in the Japanese beauty tools market.
April 2019	Partnership	The company signed a joint business plan with Alibaba Group Holding Limited. Under this joint business plan, teaming Shiseido’s excellent innovation capabilities with Alibaba Group’s big data and consumer insight, the two companies will reinforce product development, brand marketing, e-commerce, CRM, and other areas.
February 2019	Expansion	The company announced the plan to establish a new factory in Kurume City, Fukuoka Prefecture, Japan.
December 2018	Expansion	Shiseido established the China business innovation and investment representative office in Shanghai. Thus, the company aims to capture a significant target audience in the Chinese market for beauty tools.
November 2018	Expansion	Shiseido established a new research center, Shiseido Global Innovation Center in Yokohama, Japan.
October 2017	Expansion	Shiseido established a new factory in Ohtawara City, Tochigi Prefecture, Japan

Product Offering

Shiseido Company, Limited
- Shiseido professional hair scalp care fuente forte shampoo
- Shiseido medicinal adenogen hair growth promotion lotion
- Shiseido furorin live act hair growth essence
- New Shiseido medicated adenogen hair growth shampoo
- New Shiseido adenogen scalp care conditioner
- Sea breeze shampoo
- Shiseido adenogen medicated scalp dandruff care hair conditioner
- Intensive hair and scalp essence
- Hair energizing complex
- The grooming scalpeffector
- The grooming sodafoam cleanser
- The grooming shampoo
- Global Mascara Market
- Category
- Offering
- Anti-Acne Product

Financial Performance

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