By region, sales in Japan increased 2.6%; sales in Asia rose
nearly 28%, sales in the Americas improved 12.4% and sales in
Europe increased 6.7%.
For Q1 2016, corporate sales rose 1.7%. For the full year,
the company expects corporate sales to increase 2.4%, which, if
achieved, would represent the seventh consecutive year of gains
for sales and profits. To get there, Kao executives say they are determined to reform the cosmetics business. This year, the focus is on
Kanebo, and in 2017, Kao will shore up Sofina. Despite its efforts,
Kao still expects overall beauty care sales to decline ever so slightly
(-0.1%) in 2016, compared to a 1.4% gain in fabric and home care
and an 8.7% increase in human health sales.
chief supply chain officer; Philippe Lesné, president, travel retail; Yoshiaki Okabe, brand director, Shiseido; Marc Rey, president and chief executive officer, Shiseido Americas; Yoshihiro
Shiojima, chief legal officer; Mikiko Soejima, chief beauty officer;
Shigekazu Sugiyama, senior vice president, cosmetics brands,
Shiseido Japan; Norio Tadakawa, chief financial officer; Mari
Tamura, senior vice president, global prestige brands.
Major Products: Skin care, color cosmetics, sun care, fragrances and toiletries. Prestige—Shiseido, Clé de Peau Beauté,
BareMinerals, Nars, Benefique; Fragrances—Issey Miyake,
Narciso Rodriguez and Elie Saab fragrances; Professional—
Shiseido and Joico; Cosmetics—Elixir, Maquillage, Haku, Prior,
Anessa, Aqualabel, Integrate, Za, Aupres, Urara, Pure & Mild;
Personal Care—Tsubaki, Sea Breeze, Senka; Health Care—The
New Products: Ipsa Metabolizer, Elixir skin brightening line,
Ultimune Serum; Acquisitions—Laura Mercier and RéVive.
Comments: Shiseido is finally turning things around—both
around the world and in its critical home market. Domestic sales
increased nearly 12% and international sales increased 5.4% (local
currency) and 13.3% (yen). Sales rose in every market, according to
company executives. In fact, CFO Norio Tadakawa pointed out it
was Shiseido’s first year of growth since the financial crisis of 2008.
Sales in Japan rose 10.9%. Sales rose sharply in the prestige
sector, with Shiseido increasing 43% and Clé de Peau Beauté sales
up 36%. Core, mid-priced brands such as Elixir and Maquillage
had good gains, but value-priced cosmetics struggled in Shiseido’s
home market. This year, the company expects Japanese sales to
International sales rose 5.1% on local currency terms, but the
weak yen boosted the gain to nearly 13%. Cosmetics sales in China
continue to grow at a high single-digit pace, though the deceleration of the economy is cause for concern. Good news came from
Singapore, Malaysia, Vietnam and travel retail, where sales were
solid in 2015.
In the Americas, bareMinerals’ sales were flat, but gains were
recorded for Shiseido sun and skin care products and Nars cosmetics. Shiseido admitted that its brands struggled in Germany,
Switzerland and other parts of Europe, but there were some
bright spots, specifically the sales gains registered by the prestige
Last year, the company moved to a January-December fiscal
year. Results are for the nine months from April 1, 2015 to Dec. 31,
2015 for Shiseido and its consolidated subsidiaries in Japan and the
12 months from Jan. 1, 2015 to Dec. 31, 2015 for all other subsidiaries.
Now Shiseido is embarking on a new plan, Vision 2020, which calls
for net sales of more than one trillion yen, operating income over 100
billion yen and return on equity of at least 12%. The goal, say compa-
ny executives, is to become a company that is supported and needed
6. SHISEIDO JAPAN
SALES: $6.3 BILLION
Key Personnel: Masahiko Uotani, president and chief executive officer; Yoichi Shimatani, chief research and development
officer; Jun Aoki, chief people officer; Jean-Philippe Charrier,
president, Asia Pacific; Louis Desazars, president and chief executive officer, Shiseido EMEA; Kentaro Fujiwara, chairman
and president, Shiseido China; Takahiro Hayashi, chief creative
officer; Katharina Höhne, senior vice president, global professional business; Masaya Hosaka, chief technical strategy officer;
Mitsuru Kameyama, chief information officer; Yasushi Kushida,
Model and Benefique Muse Yuri Ebihara presents
new iHydro Genius, a high moisturizing serum.