Beauty Innovation

Message from an Executive Officer

Value Creation Strategy

BEAUTY
INNOVATION

KEY FIGURES

R&D Sites

8

Brand Development/
R&D Investments
to Net Sales in 2021

3.5

Awards Received at IFSCC
Congresses and Conferences

Total29

Our Approach to Beauty Innovation

Throughout its long history, Shiseido has built a robust research infrastructure through advanced functionality and stringent safety standards. In addition to our core strengths in dermatology, material science, and kansei research, we have constantly pioneered new categories and markets such as aging care and ultraviolet (UV) protection.

Technology will continue to evolve at an unprecedented pace as the needs of society and consumers will become increasingly varied. Given these conditions, Shiseido remains flexible in responding to change, establishing research and development (R&D) that is responsive to consumer insights as our value creation driver, which will help us continue to generate beauty innovations.

To achieve these goals, in 2021, we established the R&D philosophy DYNAMIC HARMONY, which aims to create new unparalleled value through the integration of seemingly conflicting or incompatible forces. We are accelerating our innovative processes based on this philosophy by visualizing the strengths and uniqueness of Shiseido R&D both internally and externally, focusing on five distinct research approaches.

The Five Approaches of DYNAMIC HARMONY

Inside x Outside
We elucidate the mechanisms that connect the body, mind, skin, and external environment, to draw out the natural, healthy beauty of our users based on holistic thinking.
Functionality x Japan Quality
We provide a high-level balance of undeniable functionality beyond expectations and close attention to safety, assurance, and other quality aspects, something Japan excels in.
Science x Creativity
We uncover latent subjective kansei and feelings through objective science, and offer unprecedented sensations and experiences of beauty and enjoyment.
Premium x Sustainability
We step up to the challenge of creating sustainable value unique to Shiseido, which balances the satisfaction stemming from the results, high-quality design, and feel of our products with respect for and coexistence between people, society, and the global environment.
Individual x Universal
We create unique value that meets the needs of diverse consumers by leveraging the vast amount of global consumer information we have accumulated over the years and offering the best personalized solutions.
And more...
We will continue to evolve ourselves, creating a sixth and seventh approach in the future.

Shiseido’s R&D Structure

In 2021, Shiseido underwent restructuring to enhance our value proposals and “seeds” creation. Our entire R&D function was integrated into two institutes: the Brand Value R&D Institute, which is responsible for agile product development in alignment with brands, and the MIRAI Technology Institute, which is in charge of creating medium-to-long-term “seeds” as well as value creation and business development in new domains.

Globally, we have established a multi-hub network that allows our eight research bases worldwide, including Shiseido Global Innovation Center (GIC) in Yokohama, Japan, to collect and understand the needs of different local markets and conduct research and development on products and services that maximize regional strengths. These centers can contribute to innovation at regional businesses before rolling out their respective insights and research findings on a global basis. Our newest R&D center began operation at the Oriental Beauty Valley in Shanghai in October 2021.

New R&D Organization (as of January 2021)

Global Innovation Center

Global Multi-Hub Network

Future R&D Strategy

Going forward, Shiseido will continue to invest approximately 3% of our sales into R&D in areas that will support future growth. Under the concept of DYNAMIC HARMONY, we will combine brand concept and science, concentrate resources on focus areas, and accelerate the commercialization process.

In terms of focus areas, we will enhance the skincare-related category, including skincare per se, sun care, base makeup, clean/natural cosmetics, and beauty devices, in conjunction with our overall strategy. At the same time, we will also focus on inner beauty R&D in diet, sleep, and other areas where consumers exhibit increasing interest. Data science will be an added foundation to support our research, further bolstered through integration with conventional basic research areas. Shiseido is also committed to accelerating the development of sustainable technologies that ensure coexistence with society and the environment.
Our DYNAMIC HARMONY philosophy will also shape how we engage in open innovation with academia, start-ups, and research institutions in other industries.

Related Data

Total number of IFSCCawards
29
Brand development / R&D investments
36.5 billion yen
(ratio to net sales: 3.5% )
Number of researchers
Approx. 1,200

Number of IFSCC Awards: Shiseido Vs. Competitors

IFSCC Achievements
2021 Top Award for Podium Presentation
Moe Tsutsumi, Ph.D.
Researcher, MIRAI Technology Institute
“Skin beauty with gentle-touch-receptor Merkel cells—Restore your sense of touch with a pleasant scent”

In collaboration with Monasterium Laboratory, Tsutsumi discovered that odorant receptors are expressed in Merkel cells, which mediate touch sensation, and used human skin culture systems and live-cell imaging of human skin to demonstrate that these receptors are activated by a type of synthetic perfume that has a sandalwood-like odor. Moreover, the researcher group also found that peripheral nerves connected to Merkel cells that transmit touch sensation to the brain are also involved in maintaining the dermis structure associated with skin firmness and sagging. These discoveries suggest that Merkel cells can be activated by odorants, even in the absence of touch, and this mechanism could potentially improve skin condition.

Message from an Executive Officer

Value Creation Strategy