Shiseido’s Growth Strategy
Fragrance brands such as Dolce&Gabbana and narciso rodriguez helped drive growth in the EMEA Business, with new products recording robust sales. Additionally, SHISEIDO makeup performed favorably, and NARS continued to grow as well. In October 2019, we opened a dedicated Clé de Peau Beauté boutique in London, which got off to a solid start. Going forward, we will step up efforts to roll out Clé de Peau Beauté across Europe.
The EMEA Business includes commercial operations, brand holder functions responsible for the development of fragrance brands, and functions pertaining to our Center of Excellence, which conducts the global development of our fragrances. The EMEA Business is also responsible for executing strategic investments in these functions. Commercial-based profit improved drastically, recording over 10% operating margin, and with brand holder costs combined, it nearly reached the break-even point.
In EMEA, we will continue to invest in fragrance brands that are driving growth, such as Dolce&Gabbana and narciso rodriguez. Furthermore, we will focus on the cultivation of skincare brands, our area of strength, such as SHISEIDO and Clé de Peau Beauté.