tatsuomi takamori director, corporate executive officer ...vietnam india fiji jordan mexico italy...
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Copyright©2012 Shiseido Co., Ltd. All Rights Reserved .No reproduction without permission.
Tatsuomi Takamori
Director, Corporate Executive Officer
SHISEIDO Co., Ltd.
March 1, 2012In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements.
2012 Mizuho Investment Conference
New Business Model
for the Domestic Cosmetic Business
-Start of Full-scale Web Marketing-
New Business Model New Business Model
for the Domestic Cosmetic Business for the Domestic Cosmetic Business
--Start of FullStart of Full--scale Web Marketingscale Web Marketing--
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Copyright©2012 Shiseido Co., Ltd. All Rights Reserved .No reproduction without permission.
Theme of Today’s Presentation
Focusing on O2O MarketingFocusing on O2O Marketing
O2O = Online to Offline Business fusing real and virtual worlds
Creating a new business model that fully leverages our assets and fuses real and virtual worlds
Transforming the competitive environment of the cosmetics market itself
Creating a new business model that fully leverages our assets and fuses real and virtual worlds
Transforming the competitive environment of the cosmetics market itself
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Copyright©2012 Shiseido Co., Ltd. All Rights Reserved .No reproduction without permission.
Company Profile
1872
¥64.5 billion (As of March 31, 2011)
31,310 〔12,977〕*
Year ended March 2011(consolidated basis)
FoundationFoundation
CapitalCapital
Number of EmployeesNumber of Employees
Operating Results
Operating Results
Net SalesNet Sales ¥¥670.7670.7 billionbillion((overseas ratio overseas ratio 43%)43%)
Operating IncomeOperating Income ¥¥44.5 billion44.5 billion
Operating MarginOperating Margin 6.6%6.6%
Ordinary IncomeOrdinary Income ¥¥44.5 44.5 billionbillion
Net IncomeNet Income ¥¥12.8 12.8 billionbillion
*The number of employees shown denotes full-time employees. Annual average number of temporary employees is shown in brackets.
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Creation of Food Culture
LL’’osierosier (1986~)(1986~)Shiseido ParlourShiseido Parlour (1902~(1902~))
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Business Expansion
San Marino
CroatiaSloveniaAndorra
Monaco
Czech
HungarySlovakia
Luxembourg
Netherlands
Switzerland
GreeceCyprus
Portugal
Ireland
Norway
Denmark
Sweden
Turkey
Poland
Russia
Ukraine Kazakhstan
Iceland
Finland
Malta
EstoniaLatvia
Lithuania
Lebanon
Israel
Saudi Arabia
Kuwait
UAE
Bahrain
Qatar
OmanMyanmarマー
Indonesia
Malaysia
Brunei
Cambodia Philippines
Vietnam
India
Fiji
MexicoJordan
Italy
France
Germany
U.K.
Spain
Taiwan
Singapore
China
Thailand
Korea
New Zealand
Australia
U.S.
Canada
Brazil
Japan
Belgium
Austria
51 countries in Europe
9 countries in the
Middle East
15 countries/ regions in Asia (excluding Japan)
3 countries in Oceania
6 countries in the Americas
BulgariaRomania
Operating in 88 countries and regions (including Japan) worldwidOperating in 88 countries and regions (including Japan) worldwide, e, with sales subsidiaries in 21 countries and regions, with sales subsidiaries in 21 countries and regions,
11 overseas production facilities, and 20,200 overseas employees11 overseas production facilities, and 20,200 overseas employees
3 countries in Africa
* Number of countries/regions as at February 29, 2012. Number of overseas employees as at December 31, 2011
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Shiseido’s Hallmark Hair Care Line
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Global Brand
Sold in 88 countries and regions
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Top-end prestige brand
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PARFUMS ISSEY MIYAKE PARFUMS JEAN PAUL GAULTIER parufums narciso rodriguez ELIE SAAB LE PARFUM
※As of the end of December 2011
Four Designers’ Fragrance Brands
Launched in 1993,sold in 107 countries/regions
Launched in 1992, sold in 107 countries/regions
Launched in 2003, sold in 74 countries/regions
Launched in July, 2011
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Professional Business
Acquired in 2000,sold in 85 countries/regions
Aromatherapy brandAcquired in 1986, sold in 58 countries/regions
Luxury aesthetic brand
※As of the end of December 2011
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43%
18%
0
100
200
300
400
500
600
700
800
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11/30.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
25P
Trend in Sales and Overseas Sales RatioOverseas sales ratio increased 25POverseas sales ratio increased 25P in 10 years.in 10 years.
Overseas sales ratio
Consolidated net sales
Billion of yen
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Domestic Cosmetics Business: Sales Trend
Sales have weakened since Lehman shock in 2008.Sales have weakened since Lehman shock in 2008.
01 02 03 04 05 06 07 08 09 FY2010
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Changes in the Japanese Market Changes in the Japanese Market Changes in the Japanese Market
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Changes in the Environment Surrounding Japan
Challenges for Japanese companies
Strong yenStrong yen
High corporate tax rateHigh corporate tax rate
Aging population Aging population
Great East Japan EarthquakeGreat East Japan Earthquake
Need to reduce emissionsNeed to reduce emissions
Power shortagesPower shortages
Changes in the Cosmetic Market
The influence of ITThe influence of IT
New entrants from New entrants from outside the cosmetics industryoutside the cosmetics industry
・・・・・・
Alliances in Alliances in the retail industrythe retail industry
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Development of Information Technology
There are no longer any geographical or time
restrictions on information.
Changes in customers’buying behavior
Changes in customers’buying behavior
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Changes in Customers’ Buying Behavior
Consumers have evolved into originators of Consumers have evolved into originators of information.information.
Top downBottom up
From “Information Consumers” to “Information Originator”
Information (culture, fashion, consumption)
Information (culture, fashion, consumption)
Mass audience of obedient receiversConnecting and communicating with
each other across the Internet
Top down
One-Way Both Directions
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Changes in Customers’ Buying Behavior
Comparing and browsing across
categories
Shopping without any geographical
boundaries or time restrictions
×
Companies must also change their marketing activities
Companies must also change their marketing activities
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Music Industry
Dramatic Sales Decline of Dramatic Sales Decline of the Retailers which Mainly Sell CDs.the Retailers which Mainly Sell CDs.
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Publishing Industry
In contrast to the rise of Amazon, the number of
small and midsize books stores is falling.
In contrast to the rise of Amazon, In contrast to the rise of Amazon, the number of the number of
small and midsize books stores is falling. small and midsize books stores is falling.
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Influence of IT on the Cosmetics Market
Cosmetics Ranks the FourthCosmetics Ranks the Fourth in the Internet Sales Ranking in the Internet Sales Ranking
(%)
Survey of individual purchases via the internet over a one-year period
Publications
ン
IT related products( Computers)
Music, Movies, Games
TravelAudio-Visual( TV, DVD, Camera)
Fresh Food(Vegetables, meat, fish etc)
Confectionery
Packaged food
Health foodBeverages
Rice
Household goods (shampoo, detergent)
Alcoholic beverages
45.7
29.1
26.6
24.122.7
21.0
20.9
18.8
17.1
14.7
13.4
12.3
11.6
11.5
10.1
Base For %; 1,231
Cosmetics
Fashion (clothes, bags, shoes, accesarries)
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New Business Domains
PlusPlus
Entry to Platform BusinessEntry to Platform Business
Deployment of Direct MarketingDeployment of Direct Marketing
Existing Store Sales BusinessExisting Store Sales Business
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Entry to Platform BusinessEntry to Platform BusinessEntry to Platform Business
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Name of Website
Online added-value shopping mall established to create encounters with new customers
Beauty Company
Enterprises, experts and users become friends and cooperate with each other
Users lead beautiful, enriched lives
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Attract Enterprises in Six CategoriesPursuit of beauty
from withoutPursuit of beauty
from within
Living Living beautifullybeautifully
Beauty
Relaxation
Fashion
Medical
Sophistication
Healthcare
Heal
Enrich
Cure
Dress up
Fulfill
Cultivate
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SHISEIDO’s New Direct MarketingSHISEIDOSHISEIDO’’ss New Direct MarketingNew Direct Marketing
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Name of WebsiteProviding various Providing various ““advantagesadvantages”” for for
watashiwatashi = me (the customer)= me (the customer)
”Watashi” is a word that denotes the first person, meaning “I” or “myself.”
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Major Contents of
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Online counsellingOnline counselling
Store navigationStore navigation
Online shopOnline shop
CRM using customer databaseCRM using customer database
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