SHISEIDO COMPANY

8 Pages 2020 Words

; Shiseido introduces at least one new product to the domestic market each month and tries to span the entire market
 They work together with its customers, business partners, shareholders, employees, and society
 Usefulness of the membership club (approximately 70% of domestic sales)
 Shiseido takes care of environment in using the less bad products as possible
 Good communication between Shiseido and its affiliated stores thanks to regular help from its representatives
 Adaptation of the offers with different consumers’ needs in different areas thanks to Regional Center and Consumer Communication Center
 Men’s cosmetics which is an increasing sector already represents 10% of Shiseido sales
 1998 has seen an increase in overseas sales from 11% to 14,9% of Shiseido sales

Weakness  Non appropriated policy classification by age
 While customer loyalty to Shiseido is strong in the rural areas, it is weaker in the urban areas
 6 percent decrease in sales in 1987 which proves that leadership is difficult to maintain without doing mistake
 Shiseido current foreign sales is only 15 percent of total income
Opportunities  To globalize its toiletries business, Shiseido made a strategic alliance with Johnson and Johnson of the United States in 1999
 Shiseido president has served as a chair of the cosmetics industry association, which permitted the brand being more famous



Threats  Japan is a environment characterized by overcautious consumer attitudes and a deepening market recession and the domestic market is now crowded
 Opening of Japanese cosmetics industry to foreign competition
 Foreign companies such as Max Factor, Revlon and Clinique entered the Japanese market in the early 1980s with low prices
 Common ingredients approved for use in...