Shiseido’s Growth Strategy
Shiseido’s Growth StrategyRegional Strategy
Region x Brand Global Matrix Organization（as of May 2020）
Since 2016, we have had in place a matrix organization that cross-matches six regions with brand categories. The regional headquarters are responsible for and have authority over their respective businesses. Guided by a “Think Global, Act Local” approach, these headquarters implement flexible decision-making and marketing activities attuned to the needs of local consumers.
At our Centers of Excellence, which contribute to future value creation, we collect information from regions that lead the way in each domain, conduct research, and formulate global strategies accordingly. For example, Japan hosts the Center of Excellence for skincare; the Americas, for makeup and digital technology; and EMEA, for fragrances. Moreover, we share the knowledge obtained at each Center of Excellence globally.
Region x Brand Global Matrix Organization
Centers of Excellence
Enhancement of Brand Portfolio
In 2019, Shiseido concluded a long-term beauty partnership agreement for the distribution of Tory Burch, an American lifestyle brand, and acquired the American skincare brand Drunk Elephant.
Following changes in the competitive environment and diversifying consumer needs around the globe, brand value is becoming more important than ever. Accordingly, we are working to enhance our brand portfolio through such means as M&A and global brand development.
Drunk Elephant Skincare Brand
In 2019, we acquired the Drunk Elephant skincare brand, which is realizing rapid growth in the U.S.
Drunk Elephant boasts a tremendous presence in the clean market in the U.S., which emphasizes products that are good for both people and the environment. Furthermore, by capturing the changing values of a diverse group of consumers, including Millennials and Generation Z*, Drunk Elephant garners a high level of support through close personal communication with consumers by the brand’s founder Tiffany Masterson as well as through digital marketing that leverages social media.
We will further enhance our brand portfolio with the addition of Drunk Elephant, which has exceeded sales of ¥10 billion in just seven years in the market and demonstrates a strong potential for growth. This acquisition will also help us fortify our earnings structure in the Americas Business, and we will utilize our cross-border network to expand this brand into global markets.
A generation born in the second half of the 1990s and the 2000s. In addition to being known as “digital natives,” this generation has a strong interest in environmental and social issues.
Tory Burch Lifestyle Brand
We concluded a long-term beauty partnership agreement with Tory Burch through Shiseido Americas Corporation, our headquarters for the Americas region. By doing so, we have acquired an exclusive license to globally develop, produce, market, and sell Tory Burch beauty products, which center on fragrances. Sales by Shiseido will commence in 2020.
Tory Burch is an American lifestyle brand that embodies the aesthetic and personal style of its executive chairman and chief creative officer of the same name, who launched the company in 2004. Tory Burch offers a wide range of products, including clothes, shoes, and handbags, at over 250 boutiques and over 3,000 department stores around the world, as well as through its official online store.
By adding Tory Burch to our prestige brands, we will not only enhance our brand portfolio, but also strengthen our fragrance business in the U.S. Furthermore, with this partnership we will aim to expand our consumer contact points in Japan, other countries in Asia, and in the Middle East, where Tory Burch has a high level of brand recognition.
Strengthening ELIXIR and ANESSA as Global Brands
The skincare brand ELIXIR and sun care brand ANESSA have enjoyed high demand from consumers, primarily in Japan, for many years, thus realizing continuous sales growth. Going forward, we will accelerate the expansion of these brands into the Asia Pacific, EMEA, and Americas regions and turn them into truly global brands originating in Japan.
