Shiseido Company, Limited is one of Japan's most valuable non-tech brands. It was founded in 1872 in Tokyo's prestigious Ginza district as a pharmacy and gained popularity by combining Western technology with Japanese tradition in personal care products. By the beginning of the 20th century, the Shiseido brand had shifted its focus to cosmetics, which remains a
to this day. The company has also expanded into other businesses outside the beauty industry, such as operating restaurants, educational establishments, and childcare facilities.
The success story of a camellia
The stylized Shiseido brand name and a red camellia became trademarks of the company's product line when it expanded into the cosmetic segment. The brand is at the core of the prestige segment and is widely recognized in the
domestic beauty industry and overseas markets. Over its 150 years of history, the company has developed or acquired new brands to diversify product lines and target groups, increasing the cosmetic giant's presence in the mid-priced and mass market segments. While the company is the
undisputed leader for cosmetics, the personal care market is highly competitive, with domestic competitors like Kao Corporation and Kosé Corporation defending their market share.
However, in 2021, Shiseido announced the sale of its personal care segment to FineToday and a private equity firm, while retaining a stake in the joint venture. Along with a restructuring of its brand portfolio, the business strategy was refocused on the high-end cosmetic market as the company aimed to become the
leading beauty manufacturer worldwide.
Shiseido in the Japanese beauty landscape
Shiseido primarily caters to the high- and mid-priced segments of the Japanese cosmetics market. The company combines traditional and modern channels to distribute its products. While self-operated flagship and virtual stores allow brand-focused marketing supplemented by customer consultation and trial services, third-party-operated stores like drugstores and department stores are at the center of the distribution strategy. For sales outside of Japan, Shiseido has been making use of subsidiaries and licensing agreements overseas as well as the growing
e-commerce infrastructure within the country. Shiseido brands are in demand as functional luxury products overseas, valued for their high quality and safety standards resulting from the strict regulations imposed on the Japanese cosmetics industry.
Particularly in China, the company is building on the success of prestige brands like Shiseido, NARS, and Clé de Peau Beauté, where the market rivals the
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