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Shiseido SWOT & PESTLE Analysis

ID : 52710153| Jul 2020| 14 pages


Business Sector :Personal Care and Beauty Products

Operating Geography :Japan, Asia. Global

About Shiseido :

Shiseido is a Japanese multinational company dealing in production and distribution of personal care, cosmetics and skincare products. With a legacy of 145 years, Shiseido established as Japan’s first Western style pharmacy, is headquartered in Ginza, Tokyo. The company is renowned for its beauty and skincare products across the world which ingeniously blend the eastern science of beauty care with western technology. Majority of the business of Shiseido includes cosmetics, however it has diversified its business in hospitality in Japan, which includes, restaurants and educational institutions. With an employee strength of approximately 46,000 people as of 2020, Shiseido has developed itself as a high-end beauty product manufacturer and marketer. However, it has diversified its products into several subsidiaries, such as Za, to cater to the mid income customer, with zero compromise on quality. The brand is an established name in Japan, China, Europe and America. Apart from that, the brand has also developed expertise in the travel retail business, a rare in the sector. Shiseido’s policy involves sustainable growth of all its stakeholders, i.e., customers, business partners, employees, shareholders, society and the Earth.

The USP or unique selling point of Shiseido lies in blending the Asian science of cosmetics with western innovation and technology. Shiseido’s vision statement reads “Beauty innovations for a better world.’ There are eight driving principles behind the beauty giant’s strategy, known as ”TRUST 8”, which are “Think Big”, “Take Risks”, “Hands On”, “Collaborate”, “Be Open”, “Act with Integrity”, “Be Accountable” and “Applaud Success”. Shiseido’s mission statement reads “To become a company that remains vital for the next 100 years, we will continue various initiatives to “Be a Global Winner with Our Heritage.”

Shiseido Revenue :

JPY 1131.5 billion - FY ending 31st December 2019 (y-o-y growth 3.4%)
JPY 1094.8 billion - FY ending 31st December 2018

Competitive Analysis of Shiseido

The SWOT analysis of Shiseido is presented below in a matrix followed by the detailed analysis report:
1. Building brand through acquisitions
2. Leading luxury beauty product manufacturer in Asia
3. Brand value of products with Asia-western blend
4. Active in large markets like US, China and Japan
1. Not in demand among younger consumers
2. Stock outages in core products
3. Failure of Bare Escentuals leading to massive impairment losses
4. Shutting down on Indian subsidiary due to failing targets
5. Dependent on Japanese markets for lion’s share of its turnover
1. Harnessing the potential of the Indian sub-continent
2. Launching novel products aligned with the new normal
3. Rolling out fresh scent-line up to “connect deeply with consumers”
4. Bolstering M&A strategy with an eye on peppy upstart brands
5. Investing in a unified global e-commerce strategy
1. Thriving in a highly competitive industry
2. May lose its essence of an Asian-western blend
3. Alleged copycats shaving off market revenue
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Detailed SWOT Analysis of Shiseido


1. Building brand through acquisitions: Shiseido had a brand image of a beauty brand for mid aged and older women. Shiseido is changing this image through acquisitions of brands, which appeal more to the millennial. In October 2019, Shiseido acquired Drunk Elephant, a famous skincare brand in US, with a premium of $845 million. The brand is utilized to promote Elixir and Anessa, Shiseido’s home grown skincare solutions. With an eye of grabbing greater market share in America, Shiseido also acquired Toy Burch. Toy Burch, established in 2004, has its own lifestyle product line up in clothing and beauty care. In fiscal 2016, with the objective of expanding footage in the luxurious market of the Middle East, Shiseido acquired Laura Mercier, Revive and Dolce&Gabbana, further bolstering the company's presence as a leading player in the beauty industry.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


1. Harnessing the potential of the Indian sub-continent: Shiseido’s brands represent themselves as luxury skincare and cosmetics products. With opening up economies and betterment in living conditions, consumers of countries of Indian sub continents are looking forward to spend on grooming and beautification through beauty products. India’s luxury market has seen growth faster than the rest of the BRICS nation. The Indian beauty product market was worth $ 6.5 billion in 2017, which is poised to become worth $ 20 billion by the year 2025. With Indian consumers being one of the largest users of Internet and with economic boom in recent years, the consumers are seeking for the availability of makeup options. Shiseido has been present in India since 2014 through its brand Za and has risen to the challenge of evolving in the Indian market with huge base of bio-diversity. Currently it sells in India through a number of ecommerce channels like Amazon, Nykaa, Sephora, Myntra and Facebook. In fact in March, 2020, the Japanese beauty giant has forayed into Sri Lanka through the online store CosmoStore via its distributor LUXASIA PARTNERS PTE. LTD, which the Company believes holds great potential given its population of over 20 million people and large prestige cosmetics market (as estimated by the company) compared to neighboring Laos and Cambodia, where Shiseido already has a presence.

The remaining section of “Opportunity” is available only in the 'Complete Report' on purchase.


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Major Competitors :

  • Kao Corporation
  • Estée Lauder Companies Inc.
  • Ralph Lauren Corporation
  • L’Oréal
  • Coty
  • Revlon
  • Avon Products Inc.
  • Oriflame
  • Unilever PLC

Major Brands :

  • bareMinerals
  • Clé de Peau Beauté
  • Dolce&Gabbana
  • IPSA
  • Laura Mercier
  • NARS
  • narciso rodriguez
  • Serge Lutens
  • d program
  • HAKU
  • MAQuillAGE
  • urara
  • Za
  • Ag DEO 24
  • Uno
  • The Collagen
  • Perfect Cover
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Check Out Analysis of Other Relevant Companies

References used in Shiseido Analysis Report

1. The Tech Edit podcast Vogue Business -
2. Shiseido Annual Report 2019 -
3. Shiseido – The Iconic Asian Cosmetics And Skincare Brand -
4. VISION 2020 Be a Global Winner with Our Heritage -
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Shiseido SWOT & PESTLE Analysis - SWOT & PESTLE.COM

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Copyrights and Disclaimer

Shiseido SWOT and PESTLE analysis has been conducted by Tej Narayan Shaw and reviewed by senior analysts from Barakaat Consulting.

Copyright of Shiseido SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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Shiseido SWOT & PESTLE Analysis
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