Shiseido reveals three year plan to rejuvenate business

Published: 29-Apr-2015

Company aims to generate ¥100bn operating profit and over ¥1 trillion sales

Beauty giant Shiseido has revealed details of a three year plan that it hopes will rejuvenate the business.

The FY2015 to FY2017 plan, which starts this fiscal year, aims to help the company resolve structural issues with domestic and international businesses as well as to realise a strategy that makes aggressive marketing investments resulting in accelerated growth over the next three years from FY 2018 to FY2020.

Shiseido has set a ¥100bn or more target for operating profit and 12% or more ROE target in FY2020. The company said that to achieve these goals, it aims to increase consolidated sales to over ¥1 trillion.

In a statement about its vision, Shiseido noted: "With the main theme 'rejuvenate Shiseido', we will reconstruct all business activities and increase our company value based on customers' need, aiming at becoming a company that is filled with energy, is overflowing with youthful spirit, is a topic of conversation around the world, is inspiring to and admired by younger generations and is driven forth by diverse culture by FY2020."

Among its top priorities over the next three years Shiseido aims to: build the foundation for top share in Japan, which involves nurturing strong brands and expanding recruitment of beauty consultants; accelerate global growth by transitioning to a new matrix organisation and expanding travel retail share; and re-engineer its China business, which is Shiseido's top priority market.

Shiseido also plans to increase R&D investment by 40% by FY2017, including the personnel in its laboratories from approximately 1,000 to 1,500 by FY2020. The company aims to establish a regional-based research organisation and expand the size of laboratories in Japan, China, Southeast Asia (Thailand), Europe (France) and the US.

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