SHISEIDO, : strategie for recovery !

Shiseido, one of the world's largest cosmetics companies, was shocked to see its stock price plummet in 2013 when senior management warned its investors that benefits would be lower than expected. Its sales decreased when competitors started attacking its position on emerging markets. The company, which sells luxury cosmetics and faces competition in France with L'Oréal and Estée Lauder, has encountered a strong decrease in its market share in Asia in recent years, and has had to deal with increased competition which is targeting low-price products. An in-depth review of Shiseido revealed that its results were not as promising as those of its competitors. Shiseido, which has faced challenges before in its 140 years of trading, is experiencing major difficulties, and is trying to set up a global strategy based on 'selection and focus'. Efforts are being made on its internal market, in China, and the acquired business Bare Escentuals, by clearly specifying the brands and product lines. The group has started reforming its structure, allowing it to overcome obstacles standing in the way of growth. Will the company be better prepared for confronting competition after these changes?