by consumers worldwide. To get there, Shiseido must become more
consumer-oriented, nurturing strong brands built on research and
development, people and organization, and marketing.
For the first quarter of 2016, sales rose 1.4% to a record ¥213.3
billion. Sales of prestige products led the way with a gain of more
than 10%. Cosmetic sales increased 1.4% and professional sales
rose less than 1%. Meanwhile personal care sales were flat and
fragrance sales declined 5.4%. Forex effects reduced sales 6.7%.
Most regions posted gains in Q1. Sales in Japan rose 4.5% and
China gained 4.2%. Elsewhere, Asia-Pacific grew 1.2% and the
Americas added nearly 1%. Only Europe, Middle East and Africa
reported a decline in sales ( 3.2%). Travel retail sales rose 2.1%.
Shiseido continues to make more to shore up its presence outside Japan. In May, the company dedicated a new research facility in Windsor, NJ. Research will focus on color cosmetics. It joins
the Japan Innovation Center focusing on skin and the European
Innovation Center focusing on fragrance.
“With the opening of this Innovation Center, we are firmly
in the most dynamic, exciting market in the world,” explained
Masahiko Uotani, president and group CEO, Shiseido Co. Ltd.
at the opening earlier this year. “My dream is that the Americas
Innovation Center develops innovative products that make the
consumer say, ‘Wow! I never thought of that!’ Just like the reaction
that Sony got when it launched the Walkman.”
The oohs, ahs and wows continued in June when Shiseido ac-
quired Gurwitch from Alticor. The deal adds the Laura Mercier and
RéVive brands to Shiseido’s prestige portfolio. No purchase price
was disclosed, but Gurwitch had sales of $175 million last year.
Last month, Jill Scalamandre joined Shiseido as the president of the global makeup center of excellence. She will report to
Marc Rey, president and CEO, Shiseido Americas. Prior to joining
Shiseido, Scalamandre served as chief marketing officer, skin care,
Coty and senior vice president, Philosophy.
For the full year, Shiseido expects its global sales to rise 3% on
a local currency basis. Looking even farther ahead, a global innovation center should be completed in Yokohama in 2018.
Nars is ready for Fall with its color collection.
7. BEIERSDORF GERMANY
SALES: $6.1 BILLION
Key Personnel: Stefan F. Heidenreich chief executive officer,
responsible for corporate development, internal audit, pharmacy, Japan, La Prairie, purchasing, production, logistics, Germany
and Switzerland; Jesper Andersen, executive board member,
responsible for finance, controlling, legal, compliance, IT and
quality assurance; Ralph Gusko, executive board member, responsible for brand management consumers, research and development, Far East (excluding Japan) and Australia; Thomas
Ingelfinger, executive board member, responsible for Europe
(excluding Germany and Switzerland); Stefan De Loecker, executive board member, responsible for Near East and Americas;
Zhengrong Liu, executive board member, responsible for human resources, corporate communications and sustainability.
Major Products: Skin care brands that include Nivea, Eucerin
and La Prairie.
New Products: Nivea Active Clean, Nivea Cream Smooth,
Nivea Care and Nivea Men Cream; La Prairie Anti-Aging Rapid
Response Booster and Skin Caviar Concealer Foundation.
Comments: Corporate sales rose 6.4% last year, and consumer
product sales did a tad better, up 6.5%. All three major brands
posted gains, with Nivea sales up 4.5%, Eucerin up 5.4% and
La Prairie up 1.2%.
Nivea gained market share in its core categories and most
key markets, according to the company. The sales gain was attributed to the success of deodorant, shower and all-purpose
creams under the Nivea banner. In the deodorant category, both
Nivea Black & White and Fresh variants posted double digit
Beiersdorf headquarters in Hamburg, Germany.