Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival

@article{ART002543179},
author={ Jake Zhu and Rei Hanada and Claudia Verdes and Sheena Iyengar },
title={Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival},
journal={Academy of Asian Business Review},
issn={2384-3454},
year={2019},
volume={5},
number={2},
pages={45-76},
doi={10.26816/aabr.5.2.201912.45},
url={http://dx.doi.org/10.26816/aabr.5.2.201912.45}

TY - JOUR
AU - Jake Zhu
AU - Rei Hanada
AU - Claudia Verdes
AU - Sheena Iyengar
TI - Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival
T2 - Academy of Asian Business Review
PY - 2019
VL - 5
IS - 2
PB - Academy of Asian Business (AAB)
SP - 45-76
SN - 2384-3454
AB - Shiseido is the only company of Asian origin among the top five global players in the cosmetics industry. Started as a pharmacy back in 1872, the company is the world’s oldest cosmetics company. Shiseido’s early success is attributable to its unique blending of eastern aesthetics and western science in cosmetics. The use of centralized management system ensured consistency of brand reputation and product quality around the world. However, Shiseido’s business significantly underperformed in comparison to its competitors from 2008 to 2014. Sales stagnated, and profitability declined. The lack of strategic focus, inflexibility of localization effort, and insufficient investment in core strength are the key failure factors. Starting in 2014, with the appointment of Masahiko Uotani as the new CEO, Shiseido’s performance substantially recovered. Sales crossed JPY 1 trillion for the first time in 2017. The decentralization of power, building of success at home to leverage abroad, dual mission of targeted investment and cost-cutting, and adherence to the spirit of Japanese management principles are the key success factors. With opportunities in the Americas and EMEA (i.e. Europe, Middle East and Africa) markets, and with Shiseido’s focus on technology, the outlook remains bright. Key lessons for struggling Asian corporate giants from Western management methods include: seek the right leadership externally, not just internally; make upfront investment for later growth; and decentralize decision-making power where beneficial. An ideal management model for companies of all sizes can be built by mixing Western management methods with the spirit of Japanese management.
KW - Cosmetics Industry, Revival, Japanese Management Principles
DO - 10.26816/aabr.5.2.201912.45
UR - http://dx.doi.org/10.26816/aabr.5.2.201912.45
ER -

Jake Zhu , Rei Hanada , Claudia Verdes and Sheena Iyengar (2019). Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival. Academy of Asian Business Review, 5( 2), 45- 76.

Jake Zhu , Rei Hanada , Claudia Verdes and Sheena Iyengar . 2019, “Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival”, Academy of Asian Business Review, vol. 5, no. 2, pp. 45-76. Available from: doi:10.26816/aabr.5.2.201912.45

Jake Zhu Rei Hanada et al. Claudia Verdes Sheena Iyengar “Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival” Academy of Asian Business Review 5.2 pp. 45-76 (2019): 45.

Jake Zhu , Rei Hanada , Claudia Verdes , Sheena Iyengar . Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival Academy of Asian Business Review [Internet]. 2019; 5( 2), : 45-76. Available from: doi:10.26816/aabr.5.2.201912.45

Jake Zhu , Rei Hanada , Claudia Verdes and Sheena Iyengar . “Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival” Academy of Asian Business Review 5, no.2 (2019): 45-76. doi: 10.26816/aabr.5.2.201912.45

홈 권호 목록 논문 목록 논문 상세

Shiseido, the Sleeping Beauty of the Cosmetics Industry: Learning from its Success, Failure, and Revival

Academy of Asian Business Review

약어 : AABR

2019, vol.5, no.2, pp.45 - 76

DOI : 10.26816/aabr.5.2.201912.45

발행기관 : Academy of Asian Business (AAB)

연구분야 : 경영학

Jake Zhu ¹ , Rei Hanada ² , Claudia Verdes ³ , Sheena Iyengar ⁴

¹Columbia Business School

²Columbia Business School

³Columbia Business School

⁴Columbia Business School

인용한 논문 수 : - 서지 간략 보기

초록

Shiseido is the only company of Asian origin among the top five global players in the cosmetics industry. Started as a pharmacy back in 1872, the company is the world’s oldest cosmetics company. Shiseido’s early success is attributable to its unique blending of eastern aesthetics and western science in cosmetics. The use of centralized management system ensured consistency of brand reputation and product quality around the world. However, Shiseido’s business significantly underperformed in comparison to its competitors from 2008 to 2014. Sales stagnated, and profitability declined. The lack of strategic focus, inflexibility of localization effort, and insufficient investment in core strength are the key failure factors. Starting in 2014, with the appointment of Masahiko Uotani as the new CEO, Shiseido’s performance substantially recovered. Sales crossed JPY 1 trillion for the first time in 2017. The decentralization of power, building of success at home to leverage abroad, dual mission of targeted investment and cost-cutting, and adherence to the spirit of Japanese management principles are the key success factors. With opportunities in the Americas and EMEA (i.e. Europe, Middle East and Africa) markets, and with Shiseido’s focus on technology, the outlook remains bright. Key lessons for struggling Asian corporate giants from Western management methods include: seek the right leadership externally, not just internally; make upfront investment for later growth; and decentralize decision-making power where beneficial. An ideal management model for companies of all sizes can be built by mixing Western management methods with the spirit of Japanese management.

키워드

Cosmetics Industry, Revival, Japanese Management Principles

참고문헌(27)

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