According to Shiseido, under the three-year plan it implemented in fiscal 2005, the company has achieved renovation of brand strategy domestically, as exemplified by the introduction of mega lines, elimination of beauty consultant (BC) sales quotas, reform of retail store contracts, the sales organizational structure and production and logistic structures, and by strengthening systematization of human resources development via its “Ecole Shiseido” corporate university. Overseas, Shiseido has promoted sales expansion, particularly in China, and implemented liquidation of unprofitable businesses and undertaken reorganization of operations in North America. As a result, Shiseido anticipates an operating profitability of 8% or higher for the final fiscal year is achievable as a committed objective of said plan.
Under a new three-year plan, Shiseido will seek to realize objectives in line with the key focal points of “globalization,” “distinction and concentration” and “utilizing external knowledge and resources.” In addition, the company Shiseido to achieve operating profitability of 10% or higher and an annual average sales growth rate of 4-5%, along with an overseas sales ratio of 40% or higher will be targeted. Shiseido remains committed to the medium-term total return ratio target of 60%, which has been its basic policy for three years. While the company will continue to base its shareholder payout on cash dividends, a flexible policy of the acquisition and retirement of treasury shares will be carried out.
Additional information is available here.
Shiseido Achieves 3-Year Goals
April 3, 2008
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