Shiseido is Japan's biggest cosmetics company, and one of the world's top five by revenues, now with operations in almost 120 countries. Internationally level, the company is known for a range of prestige makeup, skin-care and professional haircare products marketed under the main Shiseido brand, and it operates fragrance licenses for Issey Miyake and other designers through French subsidiary BPI. Latest string to its bow is Dolce & Gabbana, whose cosmetics license it acquired in 2016. Acquired brands in the US include BareMinerals, Nars and Laura Mercier. Yet while Shiseido has a presence in most large Western markets, its main sphere of operations is still the Asia Pacific. In Japan, the group markets a large collection of separately branded beauty products through its own extensive branded retail network and "beauty clubs" as well as department stores. Key skincare and cosmetic brands include luxury Clé de Peau Beauté, Ipsa and Benefique; mid-range Elixir, Maquillage and Haku; and entry-level Senka and Tsubaki skincare, wash and haircare products. China has become the company's next biggest market, with its own separate range of products including AuPres, Urara and Za. Shiseido was plagued by uncertain direction in the late 1990s, and that led to a massive restructuring of the company's portfolio in which around 140 different brands were slimmed down to fewer than 30. The process has been complicated by intense competition in the domestic market from arch-rival Kao Corporation, now a bigger company overall though still smaller than Shiseido in the beauty sector. A new management team was appointed in 2014 to speed up transformation. This is led by Masahiko Uotani, well-experienced in Western-style marketing methods from his previous role as chairman of Coca-Cola Japan. Shiseido's revenues topped Y1 trillion ($8.9bn) for the first time in ye 2018. The company traces its history back to 1872 when Yushin Fukuhara, former head pharmacist for the Japanese navy, took premises in Tokyo's Ginza district to open the country's first western-style pharmacy. The name Shiseido was derived from a Chinese expression meaning "all things come from Mother Earth".
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Historical profile information for Shiseido
Adbrands Weekly Update 24th Aug 2017: Ads of the Week: "All Things Beautiful". Japanese beauty giant Shiseido has rolled out a massive campaign to launch new skincare brand Waso across Asia. Here's a gorgeous sci-fi-inflected film from Wieden & Kennedy Tokyo - we were reminded of the opening credits sequence from the Westworld TV series - to highlight the range's philosophy of beauty inspired by nature. It's accompanied by an edgy press campaign depicting Millennial hipsters in striking wilderness locations around Japan. Lovely!
Adbrands Weekly Update 9th Jun 2016: Japanese giant Shiseido agreed to acquire US-based beauty and make-up range Laura Mercier and associated brand ReVive for an estimated $260m. Combined sales were $175m in 2015, according to Shiseido. The business is currently owned by Gurwitch Products, a unit of direct seller Amway. Make-up artist Laura Mercier is expected to retain her connection to her range.
Adbrands Weekly Update 13th Nov 2014: Carsten Fischer, the effective #2 and only Westerner on the senior management committee of Japanese beauty giant Shiseido, said he would leave the company at the end of his current contract in 2015. Despite being the longest-serving executive board member at Shiseido and overseeing the growth of its international business from 20% of sales to more than 50% last year, he has been passed over repeatedly for the top job. Shiseido has appointed three successive CEOs in the past three years, all of them Japanese.
Adbrands Weekly Update 1st May 2014: This is looking like the year Japanese exporters finally get back on track, largely as a result of the depreciation of the Japanese Yen against the US Dollar and Euro. Most of the credit goes to Prime Minister Shinzo Abe whose economic policies have reduced the average Yen/Dollar exchange rate for the past year to levels not seen since 2008, boosting the value of export sales considerably. Beauty giant Shiseido benefited from the weaker yen as a 26% jump in foreign revenues - generated almost entirely by exchange rates - offset sluggish performance in Japan, where sales were up by just 1%. Combined revenues rose by 12% to the equivalent of $7.6bn, while the prior year's net loss was eclipsed by a $260m profit.
Adbrands Weekly Update 27th Feb 2014: Following several months of exclusive negotiations, L'Oreal finalised a deal to acquire the Carita beauty salon in Paris, and its associated skincare brand, as well as French professional beauty brand Decleor from Shiseido of Japan. The price tag is €227.5m, or more than twice the two brands' combined sales of around €100m annually. They will join L'Oreal's professional beauty division.
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