This is part of the Japanese beauty major’s goal to become the leading voice in beauty, personal care and wellness.
“We'll also leverage our skin care technologies and expertise to create new beauty categories by integrating them with other categories. Furthermore, we aim to develop into a new lifestyle value of proposition that transcends the cosmetics domain,” said Kentaro Fujiwara, president and chief operating officer.
He highlighted hybrid skin care-makeup products such as Shiseido’s Revtialessence Skin Glow Foundation as an example of creating new categories.
“We aim to achieve an overwhelming number one position and high profitability by leveraging our proprietary technologies to create new categories in the market.”
Derma priority
For 2023, Shiseido net sales saw an 8.8% downturn to JPY973bn (USD6.48bn) from JPY1,067.4bn (USD7.1bn) the previous year.
It reported a 39.6% decrease in operating profits to JPY28.1bn (USD186.6m) from JPY46.6bn (USD310.2m). This slump was attributed primarily to China’s slow post-pandemic recovery.
During the firm’s 2023 full-year earnings conference, Fujiwara said that the company will prioritise cosmeceutical skin care developments.
“In the core skin care area, we will strengthen such as the derma and medical where our portfolio is thin.”
The cosmeceutical skin care segment has been identified as an important area that is well-aligned with the current beauty consumer trends.
To build its presence in this market, the company recently acquired Dr. Dennis Gross, an American cosmeceutical brand best known for its Alpha Beta Daily Peels.
Gross is a practicing dermatologist and former skin cancer researcher. He founded the eponymous brand in 2020 alongside his wife Carrie Gross.
“This acquisition will expand our prestige skin care portfolio in the US region, and we will leverage our existing business base to achieve growth and increase profits,” said Fujiwara.
Second Skin tech and IFSCC research
Fujiwara reveal that the company will expand the use of its Second Skin technology from eye care to makeup.
Shiseido acquired the Second Skin technology in 2018 through the takeover of Olivo Laboratories, a US-based start-up.
After three years in development, the company first applied the technology to help diminish undereye bags without the use of makeup.
Additionally, Fujiwara highlighted that the company could leverage its strong research and development capabilities.
He added that preparations were “already underway” to expand the company’s skin care technology based on previous award-winning research.
“Specifically, we will leverage IFSCC award-winning technology to create a new anti-ageing category, the [skin] sagging market.”
Going local
Fujiwara emphasised that the company needed to enhance the growth of our core brands in their primary markets. As such, it would be establishing local offices for its brands.
“We will establish brand-holder satellite offices in America and China. We will not only localise brand communication but also promote sustainable growth in our core markets as satellite offices for product development.”
Furthermore, Shiseido has established merger and acquisition (M&A) teams in various regions to “create new market”.
Fujiwara said: “We have established M&A teams in Japan, China, and the Americas. We will accelerate our entry into new markets and vacant areas.”
