Shiseido to Introduce Corporate Culture and Promote Sales at Event ...

Shiseido to Introduce Corporate Culture and Promote Sales at Event in Russia
From March 1 to March 20, 2011 Shiseido will hold the “Shiseido Exhibition/1872-2011/Empire of Beauty” in the
arcade of GUM, the landmark in front of Red Square that is Moscow’s largest department store and an attraction for
tourists worldwide as well as Russian customers. The event space is nearly 90 meters long, and the showcase will
allow visitors to witness Shiseido’s history and aesthetic sensibility through exhibits of an array of products, posters
and other items introducing Shiseido’s corporate culture. Moreover, a sales promotion corner will offer trials of
skincare products from the global brand SHISEIDO premium cosmetics lineup. This initiative advances Shiseido’s
aims to further enhance its presence while continuing to successfully expand its business in the Russian market.
Overview of Shiseido’s Business in Russia
Shiseido is focusing on expanding sales in emerging markets with the aim of becoming “a global player representing
Asia with its origins in Japan.” The Company considers Russia a particularly promising market and after
commencing sales there through a distributor in 1999, established Shiseido (RUS), LLC (hereinafter, “Shiseido
Russia”) in 2007 as a wholly owned subsidiary commencing direct operations in 2008. Subsequently, the Russian
market became a model of growth in emerging markets.
In terms of its sales strategy, Shiseido has been promoting initiatives to expand business partners and the number
of stores handling Shiseido products, centered on Russia’s major cosmetics specialty chain stores, which have grown
significantly by approximately threefold to about 900 stores as of the end of December 2010 compared with the
previous fiscal year. Specifically, sales of global brand SHISEIDO skincare products ranked second in December
2010 in the skincare category at L’Etoile, the largest cosmetics specialty chain store based in Moscow. Global brand
SHISEIDO is thereby steadily building its position in parallel with major brands in Europe and the United States.
Sales in existing stores have also achieved double-digit growth versus the previous year due to emphasis on
increasing the number of Beauty Consultants (BCs) and better consultation capabilities embodying Omotenashi
(spirit of hospitality).
Overview of Shiseido Exhibition/1872-2011/Empire of Beauty
The arcade of GUM department store boasts a total length of approximately 200 meters. Shiseido will divide roughly
90 meters of the arcade space into five zones and exhibit about 120 items including products, advertising posters and
BCs’ uniforms that date back to Shiseido’s foundation in 1872. Visitors can walk through the arcade as if they are
window shopping to learn about Shiseido’s 139 years of history, corporate culture and aesthetic sensibility up to the
present. A promotion corner featuring various items including skin diagnostic equipment will let visitors experience
Shiseido products.

Name Shiseido Exhibition/1872-2011/Empire of Beauty
Period March 1-20, 2011 (20 days); 10:00 am -10:00 pm
Location
Arcade of GUM department store in Moscow, Russia
Exhibition detail 【Exhibition detail】Comprised of five zones: 1) Shiseido’s Founding Spirit, 2) Rich, 3)
Human Science, 4) Omotenashi (spirit of hospitality) and 5) Power of Design.
Following these exhibitions, visitors can go to a consultation corner with skin
diagnostic equipment, where Shiseido BCs provide consultation. In conjunction with
this event, BCs from Japan will visit Russia to conduct consultation together with
Russian BCs.
Shiseido (RUS), LLC
1) Company name: Shiseido (RUS), LLC
2) Location: Moscow, Russia
3) Representative: Ms. Tatiana Volodina, General Director
4) Main business: Import and sales of cosmetics products in Russian Federation
5) Capital: RUB 106.2 million (wholly owned subsidiary of Shiseido International Europe S.A.)
2

[Reference]
Strengthening Omotenashi for Customers Worldwide
Shiseido considers its unique strength to be consultation based on
Omotenashi (spirit of hospitality) and is promoting initiatives to
enhance the response capabilities of approximately 8,700 BCs
worldwide (excluding Japan) in order to become “a global player
representing Asia with its origins in Japan.” The International
Marketing Department’s Beauty Consultation Planning Group, which
is responsible for promoting this activity, is developing various items
Shiseido BC Omotenashi Credo, which is a digest
such as software information and beauty-related training materials.
of beauty consultant activities, is translated into
Specifically, these initiatives include on-the-job-training (OJT) for the 21 languages.
improvement of BCs response capabilities, organizing seminars for BC
trainers and editing the Shiseido BC Omotenashi Credo.
Ms. Haruna Saka, a member of the Beauty Consultation Planning Group, visited Russia for 16 days from
November 18 to December 2, 2010 to conduct OJT of BCs and follow-up storefront activities based on the
Omotenashi Credo together with Shiseido Russia personnel in charge of training. Ms. Saka made the following
comments regarding local activities in Russia.
Helping to Create More Beautiful Skin for Customers in Russia Is My Desire
Haruna Saka
Beauty Consultation Planning Group,
International Marketing Department
The primary objectives of my business trip to Russia at this time were to conduct follow-up activities for local BCs
and appropriately convey various messages to customers such as the importance of daily skincare as well as the
appropriate choice of skincare products depending each customer’s skin condition and the proper use.
Skincare varies significantly according to country and region depending on various criteria such as climate,
daily hygiene practices and aesthetic sensibilities. At Shiseido, on a global basis we recommend skincare that is
based on the three steps of removing unnecessary dirt from skin with facial cleaning foam, providing necessary
moisture with a softener and retaining moisture using a moisturizer. In Asian countries, including Japan, where
humidity is high, women’s skincare regimen using a softener after facial cleansing has become well established.
At the same time, in Europe (including Russia) where the climate is dry throughout the year, it is a common
practice to moisturize skin using a cream-type product after facial cleansing. Thus, some customers are unfamiliar
with softeners.
In my 16 days of activities, I noticed a lack of moisture, as well as hardness and roughness of skin among many
Russian customers. I conducted consultation for customers and selected and slowly and carefully applied suitable
3

softeners. Consequently, most of the customers realized that their skin became soft, allowing subsequent skincare
items to penetrate deeply into the skin. Some of the customers were amazed by the effect of a softener, saying such
things as “It’s a great discovery that my skin can become so soft.” Also, I think that the local BCs who received OJT
training regarding consultation were also able to learn the importance of choosing appropriate skincare and optimal
cosmetics for each and every customer.
I hope to continuously support storefront activities of Shiseido BCs worldwide from the head office, thereby
increasing the number of regular users of SHISEIDO and supporting ways to create beautiful skin.
Storefront activity at premium cosmetic store in Russia
Haruna Saka
Joined Yokohama Branch Office, Shiseido Sales Co., Ltd. as a
BC in 1999. Ms. Saka was selected as a member of the China
Field Training Team (to conduct storefront activities together
with local BCs at cosmetic stores) in 2004 and worked in
major cities in China for one year. Then, she moved to her
current position carrying out activities to strengthen response
capabilities of BCs worldwide and convey Omotenashi (spirit
of hospitality).
Popular item among Russian women
SHISEIDO Future Solution LX
Eye and Lip Contour Regenerating Cream
(Cream for eye and mouth areas) 15g
(Suggested retail price in Japan: ¥13,000 (¥13,650 incl. tax))
Shiseido has conducted a survey * regarding the skincare regimen in “the eye area” targeting women worldwide. As a
result, more than 50% of women in Russia responded that they use “eye cream” in the morning and evening that is
effective for skincare such as in terms of moisturizing or as an anti-wrinkle treatment. Additionally, in Europe, where
there is a high interest regarding the eye area, the usage rate was under 30% in France.
SHISEIDO Future Solution LX Eye and Lip Contour Regenerating Cream launched in September 2010 in Russia
has become a popular item among Russian women.
Note: Shiseido research: 2008-2009; N=10,462; targeting women in their 20s-50s in a total of nine countries (Japan, the
United States, France, Germany, Italy, Russia, China, Thailand and Malaysia)
4

Main Initiatives for Strengthening Overseas Business
January 2008 Shiseido (RUS), LLC commenced sales of cosmetics in Russia. (Entered the market via distributor in 1998;
established a subsidiary in 2007.) Strengthening of business scheme
March 2008 Commenced sales in Romania and Bulgaria. Entered the market via import and sales distributor in Eastern
January 2009
Europe. Entry into emerging markets
New makeup line launched from global brand SHISEIDO. Remodeled function and design of sales counters
and introduced symbolic sign. Innovating global brand SHISEIDO
Shiseido Deutschland GmbH incorporated the sales and marketing functions for The Netherlands and Poland
and shifted to handling operations directly. Marketing was previously handled via its distributors since 1964
in The Netherlands and 1998 in Poland. Strengthening of business scheme
May 2009 Entered Africa for the first time. Launched global brand SHISEIDO at duty free shops in Cairo Airport in
Egypt via Shiseido Europe S.A.S. Entry into emerging markets
August 2009 Launched global brand SHISEIDO in Laos via Shiseido Thailand Co., Ltd. Entry into emerging markets
Launched global brand SHISEIDO in Morocco via Shiseido Europe S.A.S. Entry into emerging markets
November 2009 Established Shiseido Hellas S.A. in Greece as a joint venture between Shiseido International Europe S.A.
and a Greek cosmetics import and sales company. Commenced operations in January 2010.
Strengthening of business scheme
December 2009 Launched global brand SHISEIDO in Azerbaijan via Shiseido Europe S.A.S.
Entry into emerging markets
January 2010
Commenced operations of wholly owned subsidiary Shiseido Cosmetics Vietnam Co., Ltd.
Strengthening of business scheme
Shiseido S.A. commenced sales of cosmetics in Switzerland. (Entered the market via distributor in 1990.)
Strengthening of business scheme
February 2010 Completed construction of a production factory in Vietnam, becoming the 11th production base overseas
(Americas: 3, France: 3, Mainland China: 2, Taiwan: 2, Vietnam: 1).
Strengthening of global production structure
May 2010 Announced Shiseido Dah Chong Hong Cosmetics Ltd. (Hong Kong), previously a consolidated subsidiary,
to become a wholly owned subsidiary via the acquisition of all shares. Strengthening of business scheme
July-September 2010 Launched global brand SHISEIDO in three Balkan Peninsula countries [Albania (July), Kosovo (August) and
Macedonia (September)] via a distributor. Entry into emerging markets
September 2010 Launched global brand SHISEIDO in Mongolia via a distributor. Entry into emerging markets
October 2010 Launched global brand SHISEIDO in Georgia and South Africa via distributors.
Entry into emerging markets
November 2010 Launched global brand SHISEIDO via a distributor in Colombia and via Shiseido Europe S.A.S. in Moldova.
Entry into emerging markets
January 2011 Launched global brand SHISEIDO in Panama via a distributor. Entry into emerging markets
February 2011 Scheduled to launch global brand SHISEIDO in Armenia and Belarus via Shiseido Europe S.A.S.
Entry into emerging markets
5

Poster announcing Shiseido Exhibition/1872-2011/Empire of Beauty
6