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Shiseido<\/a> finds itself in turmoil. In 2023, the Japanese cosmetics giant’s net profit fell by 36.4% to 21.7 billion yen (134 million euros)<\/strong>. Annual sales, meanwhile, fell by 8.8% to 973 billion yen (6.04 billion euros)<\/strong>, while operating profit dropped to 28.1 billion yen (174 million euros) from 46.5 billion yen (288 million euros)<\/strong> last year.<\/p>\n <\/p>\n The weak economic recovery in China<\/strong>, combined with Japan’s<\/strong> decision to release water from the Fukushima power plant into the ocean, had a significant impact on Shiseido’s results. This decision aroused opposition in China and led to a boycott of Japanese products, particularly in the cosmetics sector<\/a>. As a result, sales were affected in both China and Japan.<\/p>\n <\/p>\n “We recognize that the macroeconomic figures are not good,”<\/em> said Kentaro Fujiwara<\/strong>, Shiseido President and COO, of China. “We must not only consider the macroeconomics, but also carefully assess the sectors where we have a chance to win and where growth is underway.”<\/em><\/p>\n <\/p>\n Kentaro Fujiwara indicated that new strategies will be implemented with regard to Chinese consumers. Shiseido intends to reduce its dependence on large-scale events organized in the country and cut back on promotions.<\/p>\n <\/p>\n “We will create synergies by adopting an integrated approach for China and travel retail, in order to reinforce brand value and optimize investments for Chinese consumers”,<\/em> he added.<\/p>\n <\/p>\n <\/p>\n While facing major challenges in China, Shiseido performed better in the US markets. Sales were buoyed by strong demand for Drunk Elephant<\/strong> products, as well as stable growth for flagship brands such as Shiseido and NARS<\/strong>.<\/p>\n <\/p>\n In the US, operating profit totaled 11.2 billion yen (69 million euros)<\/strong>, an increase of 3.5 billion yen (21 million euros).<\/strong> This rise is mainly attributable to the increase in gross margin, resulting from higher sales.<\/p>\n <\/p>\nPerformance in US markets<\/h2>\n
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