Shiseido CEO speaks on Japanese beauty brands and 'emotional fulfillment'
At the Nikkei Global Management Forum in Toyko, Uotani reckoned that Japanese brands aren’t connecting as they should with consumers and need to know what they stand for in order to establish an emotional connection.
“A brand is an identity. When customers touch, listen to or feel our products, we are presenting to them our brand's commitment,” said Uotani.
Thus, this has become one of Shiseido's objectives - to create a stronger connection with shoppers through new campaigns and a 'Vision 2020' strategy.
The strategy announced in December 2014 involves the brand restructuring its businesses into prestige cosmetics, personal care and 'professional', with the aim of developing strong brands and implementing appropriate marketing plans.
Here, Shiseido will pursue sales growth and cost optimization across various areas of its business where existing individual brands will be re-positioned under the new structure.
'Vision 2020' is driving
After curbing its' R&D spending in the aftermath of the 2008 global financial crisis, Shiseido has re-invested in the area again with hopes to boost group sales above the 1 trillion yen mark by 2020.
The 30 billion yen R&D facility in Yokohama, scheduled to open in 2018 will act as an open lab for dermatological research expected to lead to new skin care and colour cosmetics products for Southeast Asia, the U.S. and Europe.
"In terms of world markets, given that Japanese quality serves as a strong competitive advantage, we will continue to set the basis for basic and generic research in Japan, where Shiseido was born, to support future growth."
The company says it is important that its' researchers stay in touch by never falling unaware of the changes in the times or the city, directly feeling the dynamism of ordinary people and the changes in people's lifestyles.
Indonesia is ideal for expanding 'professional business'
Indonesia has a large population that currently stands at 250 million, ranking it at the top among the ASEAN nations and fourth in the world.
The population is expected to expand in the coming years, along with a growing wealthy class, which will provide a promising market for the professional business.
According to Shiseido, this venture represents an important step for the business to capture this growth opportunity through new operations scheme.
"We will step up our efforts to enhance the brand’s prestigious image in the region through forging strong partnerships together with top beauty salons."
