[Company analysis] Shiseido Co., Ltd. (資生堂)

「Shiseido Co., Ltd. (資生堂)」is Japan's oldest cosmetics company with a focus on cosmetics manufacturing and sales. They have secured the top share of the Japanese cosmetics market, surpassing「Kao Corporation」, the second largest Japanese cosmetics company. It ranks 5th in global market share, and operates in about 120 countries around the world. Its overseas sales share is over than 50%. The number of consolidated employees is about 38,640.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Shiseido Co., Ltd.
Company name (Japanese)	資生堂
Date of establishment	1872
Headquarters location	〒104-0061  東京都中央区銀座7-5-5MAP
Capital	64,500
Consolidated sales	1,094,825
Consolidated operating profit	108,350
Consolidated total assets	1,009,618
Consolidated capital	468,462
Capital adequacy ratio	46.4%
Consolidated number of employees	38,640

 

 

 

2. Summary and Features

 
「Shiseido」is currently developing a medical business(beauty and health foods and general pharmaceuticals) and a frontier science business(ethical pharmaceuticals and lifestyle medicine), mainly in the cosmetics business. In the past, they also entered the sanitary ware, laundry detergent, and toothpaste businesses like「Kao Corporation」, but they withdrew.

The origin of「Shiseido」was「Shiseido Pharmacy(資生堂藥局)」, which was established in 1872 in Ginza, Tokyo by Fukuhara Arinobu(福原有信), a former Japanese Imperial Navy pharmacist. Since the start of the cosmetics business in 1897, 「Shiseido Pharmacy」has continued to expand, so now this company has approximately 25,000 stores over Japan. It also took the top share in the Japanese cosmetics market. 「Shiseido」owns a number of brands with high reputation and high reliability, and not only hair care products and skin care, but also beauty food sales business.

Unlike「Kao Corporation」, whose oversea expansion is said to be a weak point, 「Shiseido」is a company that is extremely aggressive and successful company in expanding their business to oversea. Even their head office adopted English as their company common language. Their oversea business began as of 1957, in Taiwan. After that, they expanded sales countries to Singapore, Hong Kong, America and europe.

In 1964, 「Shiseido」made a technical alliance with「Amore Pacific」. Since then,「Amore Pacific」has grown rapidly, and it eventually became Korea's No. 1 cosmetics company and the world's 7th largest cosmetics company. And this means, both of them are competitors in the global market now. As for the sales of「Shiseido」at present, Japan domestic accounts for about 48%, and China (14%), Asia Pacific (5.8%), Americas (19.1%), and Europe (10%).

 

 

3. Major Business

 

■ Cosmetics business

「Shiseido」have expanded their cosmetic business under various brand names. In department store, the lineup of「Shiseido」is consisted of "SHISEIDO", "Clé de Peau Beauté", "NARS", "Laura Mercier","Skincare Elixir","SENKA". In drugstores, they have "Dolce & Gabbana", "Tory Burch", and "SHISEIDO PROFESSIONAL

 

■ Restaurant business

■ Beauty salon business

■ Education business

■ Childcare business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		850,306	1,005,062	1,094,825
Consolidated operating profit		36,780	80,437	108,350
Consolidated total assets		934,590	949,425	1,009,618
Consolidated net assets		413,870	445,872	468,462
Breakdown of sales	Japan domestic business	381,232	431,026	454,558
	China business	118,087	144,266	190,799
	Asia Pacific business	45,593	54,169	68,120
	America business	127,499	140,413	131,733
	Europe business	94,138	128,418	113,164
	Travel retail business	24,811	44,495	87,621
	Professional business	44,947	47,959	20,324
	Others	13,997	14,314	28,503