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Shiseido Grows While Fighting Increased Competition

Posted: April 27, 2012

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In addition, the designer fragrances sold by Beauté Prestige International posted healthy sales growth, highlighted by the launch of the Elie Saab fragrance in July 2011, and the travel retail business also performed well. Moreover, the company made a solid start to its online sales business in the United States. During the year, its strengthened sales in existing North American stores of Bare Mineral, a mineral-based makeup brand of Bare Escentuals, Inc., acquired in 2010. It also launched Ready, a new solid-type makeup, which contributed to continued growth.

In the top-priority Chinese market, Shiseido faced intensifying competition from European, North American, and other companies. In the department store channel, Aupres, a dedicated brand for the Chinese market, maintained a healthy performance, benefiting from a renewal of its complexion-lightening skin care line. Other highlights included continued solid performances by Urara,  a dedicated brand for Chinese cosmetics specialty stores, and Pure & Mild. Overall, therefore, the company achieved sales growth well in excess of overall Chinese market growth. In addition, we made a solid start to our online sales business in that nation. In the Asian masstige market, we posted higher sales of Za, a comprehensive skin care and makeup brand targeting middle-income earners. It also undertook a full-scale rollout of the Tsuaki brand in China, and introduced Senka, a highly functional skin care brand in the low-price segment, in Taiwan, Hong Kong, and elsewhere.

In newly emerging nations, Shiseido continued expanding sales in Russia. It also enjoyed business growth in new markets, launching sales in Panama, Armenia, Belarus and other nations. As of December 31, 2011, the global brand Shiseido had a presence in 87 nations. In the professional division, the company enjoyed a major market hit in Japan with The Hair Care Adenovital, a next-generation hair-growth treatment incorporating “adenosine,” an active medicinal ingredient. Overseas, the company reported a sales increase in China, where the market growth has been significant. Three other group companies also recorded higher sales: Carita and Decléor, which sell products to esthetic and beauty salons, mainly in Europe; and Zotos International, which sells products to beauty salons, mainly in North America. Accordingly, the professional division enjoyed steady year-on-year sales growth.  

More information on this financial report is available here.