Japan is one of the world’s leading markets for cosmetics products. The domestic beauty industry generated a revenue of over 36 billion U.S. dollars in 2017. Within the Japanese cosmetics market, skin care products dominate, accounting for a market share of almost 50 percent.
Japanese consumers value high quality products and state-of-the-art technologies when purchasing beauty goods. Shiseido products originate from cutting-edge western pharmaceuticals, while based on traditional East Asian beauty philosophies. Therefore, the company continues to be favored by domestic consumers, and is regarded Japan’s largest and most successful cosmetics enterprise.
The company has demonstrated strong growth in the last few years, generating over one trillion Japanese yen in sales in 2017, up from about 850 billion yen in the previous year. The majority of Shiseido’s sales are made in their home country Japan, followed by sales generated within North and South America. Shiseido’s largest product category are prestige products, while fragrances and personal care goods account for approximately 20 percent of total sales. Although the makeup industry is highly competitive with new brands entering the market every few months, it is a sign of strength that all of Shiseido’s business segments gained a distinct growth in 2017.
Shiseido’s share of women working in leadership positions on a global level reached over 50 percent in 2017. The rate of female managers in its homeland is with 26 percent significantly lower, but still way above the country’s average, which was just over two percent in 2016.
Shiseido emphasizes to not test its cosmetic products or ingredients on animals except when mandated by law, or where there are no alternative methods for guaranteeing product safety. However, since products of Shiseido and some of its subsidiaries are imported to China, one of the few major countries that requires animal testing on beauty goods, the company cannot be considered cruelty-free.