JAPAN. Shiseido Group President and CEO Masahiko Uotani has announced plans to retire within the next two years. From 2023, Uotani’s role will change from President and CEO to Chairman and CEO.
Kentaro Fujiwara, currently Senior Executive Officer and China Region CEO will be appointed as President and Chief Operating Officer. Fujiwara is expected to be chosen as representative director at the company’s next board meeting in March.
Fujiwara joined Shiseido Group in 1991. He has held several leadership positions in France, Germany and South Korea over the years. In 2015, he was appointed as Vice President Corporate Strategy Department and Group Leader of Digital Strategy.
The year after, he became Chairman of the Board and President of Shiseido China. In 2020, he was promoted as China Region CEO and Senior Executive Officer of Shiseido Group.
Shiseido Group today also revealed its financial results for Q3 and the first nine months of 2022. It posted a +4.7% net sales increase year-on-year at ¥762.7 billion (US$5.38 billion) in the nine months. This can be attributed to the solid recovery of the Japan market and a strong performance in EMEA, which offset the negative impact of lockdowns in China.
However, group net profit declined -18% year-on-year to ¥29 billion (US$2 billion).
Within this, travel retail net sales (like for like) grew by +15% in the year to date compared to 2021. While travel retail was impacted by lockdowns in Hainan, core operating profits in the division improved sharply thanks to sales growth and higher margins (see chart below).
Shiseido Group’s China sales continue to outperform the market despite ongoing uncertainties. The company plans to deliver sustainable growth in China by shifting from an event-driven growth model to one that focuses more on personalised brand value-based communication. This includes a renewed focus on KOLs and a diversified ecommerce network.
Sales for Nars increased by +24% in the third quarter, while the fragrances business grew by +17%.
In Q4, Shiseido Group plans to leverage market reopenings globally, stimulate consumer demand and accelerate high quality one-to-one marketing. Flagship brand Shiseido, Clé de Peau Beauté, Drunk Elephant and Elixir are the four focus brands for brand enhancements in Q4 2022.
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