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claudio junio

on 10 May 2011

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Transcript of Shisedo

Christina Carey Outline History
Analyses of strategies
Conclusion "[…] Shiseido was founded by Mr. Arinobu Fukuhara – my grandfather – who started his working life in the dispensary of a navy hospital, but was determined to start his own drugstore, no matter how small...

In 1872, he opened his drugstore at the corner of a newly built brick commercial in Ginza, the fashion district of Tokyo, and called it Fukuhara Shiseido..." 1872 Arinobu Fukuhara establishes Japan's first Western-style pharmacy in Ginza

1888 Releases Fukuhara Sanitary Toothpaste 1897 Releases Eudermine and steps into the world of cosmetics

1915 Creates and transits to the Camellia Trademark of the company

1919 establishment of Shiseido gallery

1921 establishes Shiseido’s five principles
1. Quality first
2. Coexistence and co-prosperity
3. Respect for retailers
4. Corporate stability
5. Sincerity

1923 Introduced Japan’s first voluntary chain store system Enters Cosmetic World Enters Cosmetic World The Beginning: Going Global: Going Global: 1929 started to expand their business globally
(Ex. Taiwan, U.S., Europe…)

1981 launched their business in China

1997 They Designed “THE SHISEIDO WAY”

1. With our customers
2. With our business partners
3. With our stockholders
4. With our employees
5. With our society

2005 created the slogan “beauty for not only a moment, but also a whole life” Front entrance, villa of Arinobu Fukuhara, 1921, Frank Lioyd Wright, architect Villa of Arinobu Fukuhara, collapsed by the Great Kanto Earthquake, 1923, Frank Lioyd Wright, architect Whole view of Arinobu Fukuhara's villa, 1921, Frank Lioyd Wright, architect Shiseido store in the latter half of 1910's, 1917-1919 Shiseido store, 1897-1906, Thomas James Waters, architect Entering China Started with:
Duty Free 1st company to start manufacturing in China Initially targeting only 1% of the population Increasing that percentage to 5% later Department Stores Creating their own
Beauty Salons. Creating their own Stores Going from 350 to 614 Department stores in china. Guess Who? Issues What are Voluntary Stores? Staff training
Time and effort
Right shelving and maintainance of the product
Service standards
keep number of stores low to maintain image
They could select the stores
One year contracts which could be terminated by both parts
Sold Mid-priced Products Receiving payment before shipping products
Best shelving within the store
Minimum sales amount
Allowing the Installation of POS Systems. Requirements Features: Allocation of Resources counterfeiting tarnishes their brand counterfeiting Bad impact on Shiseido’s chain stores and distributors. A counterfeit is an imitation, usually one that is made with the intent of fraudulently passing it off as genuine Quality issues Caring product’s quality too high brings a heavy burden on Shiseido
Harder for Shiseido to compete with the other companies in the low price market. Quality too high "We have always placed the greatest emphasis on quality…We cannot lower the cost of goods sold like other manufacturers because we want to maintain the quality of our products. That is why competition in this market is difficult for us” Preferences and Cultural Differences Activity Competition is fierce Procter&Gamble as well as L’oréal are bigger than Shiseido, and size does matter.

A timely matter: who will buy the Chinese firms first? Tastes and customes Cosmetic Industry:

highly segmented
highly competitive Hope in a jar: buying personal confidence

Consumption rises with discretionary income A Beautiesful World, right? Recommendations Reaching Europe:

1963: Italy
1964: The Netherlands
1968: Shiseido Cosmetici S.p.A. (Italy)
1980: Shiseido France S.A., joint venture with Pierre Fabre S.A. (France)
1980: Shiseido Germany GmbH (Germany)
1986: Shiseido U.K. Co., Ltd. (United Kingdom)
1986: Carita S.A. acquired, French beauty salon (France)
1990: Beauté Prestige International S.A. established (France)
2000: Décleor acquired (France)
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