net sales of one trillion yen, with more than half of sales
being achieved overseas...”
Part of its new three-year plan will be to create a brand
loved by customers throughout the world and establish an
undisputed presence in Asia. In addition, the firm will continue to liquidate and withdraw from unprofitable businesses and brands for which no overall synergy or future
growth can be expected.
Cost reductions will also be pursued by improving marketing efficiency. Five years ago, Shiseido’s spending was
spread out over more than 100 lines in Japan. Over the
past three years, the company has consolidated its portfolio, concentrating costs and human resources on 27 core
brands/lines. Shiseido plans to further cull that number
and concentrate marketing investment and manpower on
21, including six “mega-brands” and five so-called “
“The fewer products we have to sell, the more it
improves our marketing efficiency. It also makes it easier to
invest and easier to use our research resources,” CEO
Shinzo Maeda said at a news conference.
Shiseido management is moving quickly on this next
three-year plan. In June, Shiseido revealed that it would
withdraw from fashion and accessories Plans include shuttering all but three of 21 Ginza stores by the end of the
year. The remaining stores will sell cosmetics, according to
In addition, on July 1, Shiseido Co., Ltd. consolidated the
business operations and assets of Shiseido Cosmetics
(America) Ltd., Nars Cosmetics, Inc. and ZIC Corporation
into Shiseido International Corporation, and changed the
name of the company to Shiseido Americas Corporation
(SAC). Shuichi Tanaka, who was chairman and chief execu-
OShiseido Expands Social Beauty Care Center
N JUNE 21, Shiseido expanded its Social Beauty
Care Center located at its headquarter in Japan.
The Social Beauty Care Center provides advice on
makeup techniques to individuals with deep skin concerns such as birthmarks or scarring to support the
improvement of their quality of life (QOL).
As part of its mission, the center carries out activities for cancer patients and survivors by developing
foundation products to alleviate their skin tone concerns. Staffers also visit medical institutions to provide makeup and skin care advice for patients’ special
Shiseido is also launching a new program for medical
workers, social workers, and operators of patient associations to deepen their understanding of how patients’
QOL can be improved through cosmetics.
tive officer of Shiseido International Corp. is now chairman
and chief executive officer of SAC. The efforts aligns well
with Shiseido’s strategy of increasing the competitive
strengths of the Shiseido Group and building a solid presence in the U.S.
SAC will shift each company’s functions to the newly
created business units of Shiseido Cosmetics America, Nars
Cosmetics of SAC and JV Fragrance and Skincare. Back
office functions will be consolidated, however, each business
unit will be individually operated by the existing CEOs.
Heidi Manheimer, former chief executive officer of Shiseido
Cosmetics America Ltd., has taken the post of chief executive of Shiseido Cosmetics America of SAC. Louis
Desazars, president and chief executive officer of Nars
Cosmetics, Inc. will become chief executive officer of Nars
Cosmetics of SAC. Shuichi Tanaka, chairman and chief
executive of ZIC Corporation will be chief executive officer
of JV Fragrance and Skincare of SAC.
Sales: $3.74 billion
Sales: $3.74 billion for perfumes and cosmetics. Corporate
sales: $22.5 billion.
Key Personnel: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director.
Major Products Fragrances and cosmetic sold under brands
such as Christian Dior, Guerlain, Givenchy, Kenzo, Acqua di
Parma, Parfums Loewe, Benefit, Fresh and Makeup Forever.
LVMH also owns Sephora, the beauty products retailer.
New Products: Dior—Fahrenheit 32 for men, Midnight
Poison Addict Shine fragrances, Capture L’ Ore de Vie,
Diorskin foundation, Backstage. Guerlain—L’Instant
Magic, Eau de Shalimar, Aqua Allegoria Figue Iris and
Aqua Allegoria Laurier Réglisse, Cruel Gardénia, Cherry
Blossom delight, My Insolence. Parfums Givenchy—
Organza Jasmin 2007, Very Irresistible Rosa Damascena
2007, Amarige Mimosa 2007, Vetyver, Rouge Interdit lipstick. Parfums Kenzo—TokyobyKenzo for men, Vintage
Edition. Benefit—Love Your Look, That Gal face brightening primer. Makeup Forever—Aqua Eyes waterproof eyeliners. Acqua de Parma—Colonia Intensa. Parfums
Loewe—Quizas, Quizas Quizas. Fendi Palazzo and Pucci