Based on this belief, Shiseido has developed with an unwavering philosophical commitment to high quality, innovation and authentic value. Millions of people have come to know and trust the Shiseido name as a result. The origin of the company name Shiseido is a passage from the Chinese classic, I Ching (The Book of Changes): praise the virtues of the great Earth, which nurtures new life and brings forth new values. Shiseido puts the intent of this passage into practice by discovering and creating new value. This is our founding spirit, and it continues unbroken as Our Mission, Shiseidos raison dªtre (Annual report 2012).
Having started out as a pharmacy, it wasnt until 1915 that Shiseido changed direction and committed to the cosmetics industry. The move was masterminded by Shinzo Fukuhara, the third son of Arinobu Fukuhara and the companys first president. ¨ An experienced photographer, Shinzo Fukuhara combined artistry with high quality manufacturing, underpinned by the very latest in research and development, to establish Shiseido as a unique presence in the cosmetics industry (n.d.). The beginnings of Shiseidos corporate philosophy As part of the transition from a family business to a more corporate setup, in 1921 Shiseido set out Shiseidos Five Principles as the foundation of its corporate philosophy and activities as a company. These went on to form the basis of Shiseidos Corporate Philosophy in 1989. Having undergone a number of changes since then, this finally evolved into, a new corporate philosophy reflecting the Shiseido Groups international operations and diverse brand portfolio, in 2011. Establishing a global production network
With production facilities already up and running in areas such as North America and Taiwan, as well as in Japan, in 1991 Shiseido opened its first production facility in Europe, thereby establishing a truly global production network. Operations later got underway at a factory in Beijing in 1993 as Shiseido made its first steps towards expanding operations in the Chinese market. In 2010, the company commenced operations at a factory in Vietnam, as part of a concerted effort to tap into new growth in the so-called masstige market (n.d.).
Reviewing a description of the market including the economic system to be targeted in this marketing plan, it has been found that Thai woman are interested in new products to whiten their intimate areas. Fair skin is a symbol of opportunity, success and status. There are already skin-whitening pills and diet supplements claiming to pick up where the cosmetics leave off. But this is the first time that a vaginal whitening wash has hit the Thai market (Hodal, 2012). Asian skin ages different than others, instead of Asians being concerned with fine lines and wrinkles, Asians worry about dark spots. Using pale Korean and Japanese pop stars as illustrations, Thai womens magazines are full of fair-skinned Asians promoting products that promise to whiten, lighten and boost the complexion, with slogans such as Show off your aura and Get to know the miracle of white skin. Fair-skinned actors and singers dominate the media nearly all over the Asia-Pacific region, where the skin-lightening industry is expected to reach $2bn this year with the fastest growing markets in China and India (Hodal, 2012).
Shiseido has been at the forefront of skin-brightening research since launching the lotion Hydrogen Peroxide Cucumber in 1917 (Annual report 2012). They have developed about one-third of the active skin-brightening ingredients used in Japanese cosmetics. Shiseido is concentrating on aging research so that people can grow older beautifully. There are three key aspects in conducting research: functionality that creates healthy, beautiful skin; sensitivity and sensations such as pleasant usability, scent, color and beauty methods; and most important, safety that allows consumers to use their products worry free.
In Thailand, Shiseido needs to grow existing products and embrace its brand value. They need to use the foundation they have built to generate solid growth in Thailand. Shiseido will continue to shift through fundamental reforms in order to invest for growth, and will implement fresh initiatives. According to their website, Shiseido has always embraced innovation, progress and challenge. The only way that Shiseido can evolve is by integrating its growing strengths to continuously create new and richer value in new markets. They should see the Asian culture as a future growth driver, and should therefore put their focus on commercials and in-store visuals to build the reputation of the Shiseido brand. They should also consider focusing on local customer needs, promote seasonal cosmetic changes and realize their customers purchasing behavior.
People use the Internet to acquire information by themselves and comparison shop beyond category boundaries (Annual report 2012). Shiseido needs to recognize and accommodate to these major changes in the market by taking on the challenge of a new business model that could increases regular users of products by bringing together their existing store-based sales with business and direct marketing using the Internet.
I want Shiseido to build direct relationships with customers and use them to steadily deliver the value they generate. I would also like to see Shiseido grow from the cosmetics business by providing total beauty solutions.
The key to success for Shiseido lies in offering a suite of products targeted at a wide range of customers, but with special emphasis on the growing luxury and natural sector. There are several reasons behind the growth in high-end cosmetics: the expansion of new markets in Russia and Asia; changing social norms that make the wearing of makeup more acceptable; celebrity worship; promotion within fashion magazines; improvements in the technology that creates makeup; the influence of mass retailers that can offer lower prices, and raising affluence. As makeup becomes less expensive, better and more accessible, more women have moved away from older brands of makeup and skincare in search of higher-quality new products and more exclusivity.
(n.d.). Retrieved from http://group.shiseido.com/company/info/index.htmlThere are no sources in the current document.
Annual report 2012. (n.d.). Retrieved from http://group.shiseido.com/ir/library/annual/pdf/2012/anu00001.pdf
Hodal, K. (2012, 11 23). Thailands skin-whitening craze reaches womans intimate areas. Retrieved from http://www.guardian.co.uk/world/2012/sep/23/thailand-vaginal-whitening-wash