Shiseido ranks #6 in our Best 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
- Masahiko Uotani, president and CEO
- Kentaro Fujiwara, president and COO
- Yukari Suzuki, senior executive, D&I chief
- Norio Tadakawa, CEO, Japan region
- Ron Gee, president and chief executive officer of Shiseido Americas
- key to skin
- Drunk Elephant
- make up
- Issey Miyake
- Narciso Rodríguez
- Serge Lutens
- Tory Burch
Inner Beauty – Digestible
- Nars Light Reflecting Foundation
- Drunk Elephant B Goldi Shiny Drops
- Clé de Peau Foundation
- Elixir Lotion and Emulsion
- Sidekick Skin Care for Men
Shiseido Celebrated its 150th Anniversary
Shiseido celebrated its 150th anniversary in 2022 and a 5.7% increase in overall sales, thanks to strong performances from key brands such as Clé de Peau Beauté and Nars. Their fragrances also performed well.
Regional annual net sales figures were mixed. Japan down -8.2%, China down 6%, Asia Pacific up 7%, Americas up 13.6%, EMEA up 9.8%, Travel Retail up a phenomenal 35.7%, Professional down 38.9% and The company’s “Other “sales” segment grew by a whopping 66.4%
When looked at on a sales channel basis, prestige and premium accounted for 60% and 29% of sales, respectively. Fragrance represents 6% and Other represents 5%.
In 2021, Shiseido decided on a multifaceted restructuring and revitalization plan that includes reforms and financing expenditures to transform its product, distribution, digital and R&D capabilities. As a result of the plan, skincare brands will account for 70% of total enterprise sales in 2022, while its Americas and EMEA businesses become more profitable.
More Highlights in 2022-2023
Addressing shareholders, COO Kentaro Fujiwara said the company can move full steam ahead towards its goal of achieving an underlying operating profit margin of 15%, with a milestone of 12% in 2025. He also confirmed that the company’s regionally focused investments will be in brands, innovations and people.
In Japan, the company will invest aggressively to improve skin beauty. In China, the challenge will be to keep up with fierce competition by, among other things, expanding the brand portfolio. The company will attach great importance to strengthening its prestigious brands in the Asia Pacific region, which the company sees as the most promising region. And Shiseido plans to strengthen its NARS, Shiseido and Drunken Elephant brands in its business in the Americas. The company will promote its skin care and fragrances in EMEA.
In addition, Shiseido has fully committed to becoming a “personal beauty and wellness company” by 2030. Meanwhile, its mid-term plan, called Shift 2025 and Beyond, aims to provide consumers with a personalized experience with the aim of taking Shiseido to the top. global beauty pageant. To that end, the company has pledged to invest ¥100 billion (about $100 million) in marketing over the next three years.
Shiseido’s Sustainability Efforts
On the sustainability front, Shiseido confirmed that its medium and long-term goals are on track, with the ultimate goal of becoming carbon neutral across all its facilities by 2026.
Moreover, the company is 64% closer to its ultimate goal of developing sustainable products with sustainable packaging by 2025 and is approaching 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%.
In an announcement in November 2022, Shiseido said Masahiko Uotani, then president and CEO, would be appointed president and CEO. Kentaro Fujiwara will also be promoted to the position of president and COO, effective January 1, 2023. Uotani will retire as CEO at the end of 2024.
In the first quarter of 2023, sales increased by 2.6%. Gains were led by Shiseido, Clé de Peau Beauté, Nars and Drunk Elephant. Shiseido said sales continued to recover in Japan and China, while sales in the Americas and EMEA remained strong.
In Q2 2023, comparable sales increased again by 9%, thanks to the brands mentioned above.
See Next: Beiersdorf ranks 7th in our Best Global Beauty Companies 2023 Report.