Shiseido’s domestic sales were struggling before the earthquake
International sales crucial
Cosmetics sales of Shiseido's Japanese domestic market subsidiary dropped 9% in February on a year-on-year basis, despite the introduction of a range of new products a year ago. While OTC sales in the reporting month tended to hold up, sales of self-selection cosmetics were down.
Shiseido said the downturn in the self-selection sector was actually due to the launch of new products in the Aqua Label, Macherie and Integrate lines. Toiletries sales remained largely unchanged with weak sales of Tsubaki offset by growth from the Senka sunscreen products and Sea Breeze line.
The earthquake has made the outlook for the domestic market more uncertain, says the company.
Meanwhile, reviewing sales abroad in Q4 2010, Shiseido notes that cosmetics markets in western countries have continued to recover while markets in China and other emerging markets have reported continued growth.
Shiseido's sales in the reporting quarter rose across the board in North and South America, Asia-Oceania and in Europe though the company has not yet provided numerical detail. In the Asia region, sales were especially strong in Thailand and overall growth was in double-digits. Strong shipments for airports in the emerging east European markets helped boost overall sales in Europe as did favourable sales in Russia where Shiseido increased its dealings with a leading perfumerychain.