Annual Report 1999 ［ PDF：672KB ］ - Shiseido group website

Review of Operations
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Cosmetics
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In fiscal 1999, consolidated sales of cosmetics amounted to ¥444.5 billion, down 2.8% from the
preceding year. In the domestic counseling sector, a mainstay business for the Company, over-thecounter
sales remained at the previous year’s level. However, shipments from our sales subsidiary
declined as we reduced inventories held by retailers in preparation for our plan to display all
product ingredients on our packaging after fiscal 2001 in accordance with a new regulation.
In addition, sales of men’s cosmetics, which have assumed high importance in the self-selection
category of our cosmetics businesses, declined owing to the severe domestic economic environment.
On a positive note, non-Shiseido brand products continued to perform steadily. Overseas, we generated
increased sales of -brand products, especially Shiseido Liquid Compact, Shiseido
Relaxing Fragrance and fragrances offered by Beauté Prestige International S.A. (BPI). Because of the
yen’s appreciation during the year under review, however, overseas sales in yen terms grew only 2.5%.
Shiseido’s comprehensive Elixir line now incorporates a natural ingredient
that resists oxidation of skin oil.
Annual Report 1999
10
The Pieds Nus line is for women who enjoy applying makeup
freely in a confident display of their beauty.
DOMESTIC BUSINESS
Cosmetics—Prestige Market
In the prestige category, we further strengthened our New Shiseido
Marketing activities in line with the goal of promoting Shiseido as
a prominent “skin-care house.” In particular, we focused on
developing top-quality products targeting the global market, providing
excellent-quality counseling services and highlighting the
strengths of individual retail shops. We also strove to raise
“customer benefit” by introducing the Hanatsubaki Club Shiseido
Cosmetic Quality Guarantee System, through which we have
extended our responsibilities to cover not only product quality but
also after-sales services.
In the year under review, we comprehensively revamped
our mainstay Elixir and UV White lines. We also added Rouge
Suplinic, a new lipstick offering outstanding moisture retention
properties, to the Pieds Nus line, thereby broadening our customer
base. In June 1998, encouraged by the strong acceptance of
Shiseido Relaxing Fragrance in Europe, we launched that line
domestically, creating a new market for these fragrances.
Also during the year, sales of qiora, a new brand that combines
skin-care benefits with subtle aromacological properties, performed
according to our expectations. This brand was developed based on
the results of basic research on the “connections among the heart,
body and skin.”