Shiseido Company, Limited - statistics & facts
One of Japan’s most valuable non-tech brands, Shiseido aims to become the leading beauty brand worldwide. Founded in 1872 as a pharmacy in Japan’s prestigious Ginza district in Tokyo, the brand found success in cosmetics by combining Western technology with Japanese traditions. The stylized Shiseido brand name and a red camellia are the trademarks of the company’s products, which stand at the center of the trillion Japanese yen business. Although the company originated from Japan's toiletries industry, it is transforming to focus on the personal beauty and wellness markets.
However, Shiseido’s long-term growth strategy experienced a rocky start. While sales in Japan were on a growth path, political tension with China impacted sales in its core overseas market. Strengthening its brand equity in the saturated markets will be a major challenge for its future growth strategy.
The global success of the Camellia
Shiseido is Japan’s undisputed leader in make-up and skincare, catering primarily to the upper-price segments of the cosmetics market. Brand development plays a major role in expanding to new segments within Japan, whereas overseas markets are captured through the acquisition of foreign brands and the distribution of its core brands. Premium brands such as Elixir, Anessa, and Haku were developed in-house and target mainly domestic consumers in Japan, where they generate the majority of sales. Prestige brands such as its flagship product line Shiseido, on the other hand, are the pillar of its success overseas. Apart from sales at department stores and specialized cosmetics stores with beauty consultants, travel retail at duty-free shops is an important sales strategy of Shiseido.Shrinking down to become a global leader
The Japanese beauty industry is a competitive and mature market, in which cosmetics manufacturers are in a race to set themselves off from the competition. Under these conditions, Shiseido announced its goal to become a personal beauty and wellness company by divesting and expanding to the health foods market. As a result, the sale of its personal care business and mass-market brands to FineToday in 2021 served as a major step to refocus on its cosmetics and skincare business.However, Shiseido’s long-term growth strategy experienced a rocky start. While sales in Japan were on a growth path, political tension with China impacted sales in its core overseas market. Strengthening its brand equity in the saturated markets will be a major challenge for its future growth strategy.
