Japan Business

Driving the Growth of
the Group through Stable Profit Generation

2019 Results

2019 Review

The cosmetics market in Japan grew at an annual rate of about 1% resulting from the consumption tax hike and stagnating demand from inbound tourists. Amid the adverse effects of these external factors, our net sales in the Japan Business rose 0.7% like-for-like, on par with the overall cosmetics market.

We continued to focus on the “skin trinity” in which we have distinct strengths—skincare, base makeup, and sun care. For brand SHISEIDO, the serum Ultimune and foundation products performed well, resulting in a significant increase in sales. Furthermore, HAKU and d program achieved robust performances with the launch of “Medicated Care-Hybrid Foundation” products, which 
condition the skin while promoting a more beautiful complexion and finish.  

Key Strategies

As a global beauty company originating in Japan, we will establish a structure that allows the Japan Business to generate stable 
profits. In our Japan-based creation of new value and innovation on a global scale, we will respond to the changing values and purchasing behavior of consumers in Japan to once again bolster the Japan Business.
 
We aim to enhance the profitability of the Japan Business and constantly improve it in the future. To that end, we will fortify our management and organizational structure to spur further reforms through closer collaboration between the global headquarters and the Japan Business. In addition, we will ensure that under this structure, challenges and improvement opportunities relayed by our over 24,000 employees in their consumer interactions are promptly communicated to and leveraged by management. In these ways, we will promote business activities that are better aligned with the preferences of consumers.