along by sales of Dettol in Europe and Lysol in the US.
In a review of 2012, sales in North America and Europe rose
1% to nearly $7.6 billion. The company noted that conditions in
Europe remained difficult, but hygiene brands like Dettol, Lysol
and Finish performed well, thanks to strong demand for Dettol
No-Touch in Europe and Finish Quantum and All-in-1 gel packs
and tablets in the US. The introduction of Air Wick Filter & Fresh
and Black Edition candles provided a lift in the second half too.
Sales in Latin America, North and Southeast Asia, Australia and
New Zealand were up 11% to $3.7 billion, driven by the growth of
Dettol Daily Care and Re-energize and Harpic Power Plus.
Sales in Russia, Commonwealth of Independent States,
Middle East, North Africa, Turkey and sub-Saharan Africa rose
8% to $2.2 billion. The company credited demand for Dettol,
Finish, Harpic, Air Wick and Veet.
6. ShiSeido JAPAN
SALES: $7.1 BILLION
Key Personnel: Shinzo Maeda, chairman, president and chief
executive officer; Carsten Fischer, chairman and chief executive officer, Shiseido Americas; Tatsuomi Takamori, chief officer,
domestic cosmetics business; Masaru Miyagawa, corporate executive officer, marketing; Youichi Shimatani, corporate officer,
research and development; Hiroshi Maruyama, corporate officer,
international business; Ryuichi Yabuki, corporate office, sales, domestic cosmetics business.
Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries. Brand names include Shiseido, Clé de Peau
Beauté, Za, Tsubaki, Senka, Jean Paul Gaultier, Elixir Superieur,
Maquillage, Nars, Bare Escentuals.
New Products: White Lucent Rapidly Radiant skin set, Bio-performance Super Corrective Eye Cream, Perfect Hydrating BB
Cream, Perfect Rouge and Perfect Tender Sheer lipsticks, Urban
Environment Tinted UV Protector, Ultimate Sun Protection
Nars has come a
long way since it
by François Nars,
a makeup artist.
Lotion+, Urban Environment Oil-Free
UV Protector, White Lucent Power
Comments: Sales fell less than 1% in
local currency due to a 1.8% decline
in Japan that was partially offset by an
0.7% increase in international sales.
Despite that, Shiseido executives noted
that the business climate had worsened
in China after anti-Japanese sentiment
broke out in mid-September.
Although Bare Escentuals maintained growth and profitability since
it was acquired in March 2010, CEO
Shinzo Maeda said sales have remained
lower than expected primarily due to
weakness in North America and the decision to not enter China due to regulatory issues.
By region, sales in Japan fell 6.7% and European sales dropped
3.1%. In contrast, sales in the Americas increased 2.5%, rose 2.7%
in Asia/Oceania and increased 1.6% in China, despite a difficult
climate in the second half of the year.
To get growing again, Shiseido is making“substantial changes” without changing its medium- to long-term goal of becoming
a global player representing Asia with its origins in Japan. These
changes include rebuilding business in three key countries—
Japan, where struggling retail sales are beginning to recover;
China, where the situation has been very difficult for Japanese
companies of late; and the US, where Shiseido is increasing its
investment in Bare Escentuals.
To boost business in its home market, Shiseido is developing a new vision for cosmetic specialty stores, which enhances
beauty consultants’ activities. At the same time, Shiseido is increasing support for Elixir Maquillage its mid-priced products. To
improve consumer loyalty, Shiseido introduced Beauty & Co and
watashi+, each of which encouraged more than one million consumers to register as members. Finally, corporate executives and
the sales staff are working together to reduce product lines and
distribution channels in an effort to focus activities.
To improve business in China, Shiseido is reducing the number of brands it offers in the country, but will increase its investment in what remain on shelves. The first brands to get more
attention are Aupres and Urara, which will be promoted in 217
cities with populations in excess of one million. But even as it
works to boost sales in China, Shiseido is looking elsewhere for
growth including Russia, Brazil, Indonesia and India.
In India, initial efforts will target the“upper masstige” bracket
with the skin care and makeup brand Za (pronounced zee-ei),