Asian Brand Strategy
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Shiseido has been one of the few non-technology brands from Japan that has made it big in the global fashion, beauty and cosmetic scene. Leveraging its unique heritage and the positive effects of its country of origin, Shiseido has been able to penetrate markets around the world by offering high-quality, relevant and exciting products. Early on, Shiseido realized the importance of offering a highly differentiated experience to customers and continually exciting them with innovative and high-quality products. There are several reasons for the enduring success that Shiseido has enjoyed since its inception a century ago. But in the recent past, one of the main reasons for its success has been its well-managed brand management practices. The commitment from the company’s management has seen a continuous investment in brand building activities. Breaking into the fashion and beauty market, traditionally dominated by European and US brands, and establishing a brand name is no easy task. Shiseido truly stands apart as a great example for many aspiring cosmetic brands from Asia to become international players.
Background Shiseido was started in 1872 by Arinobu Fukuhara as Japan’s first Westernstyle pharmacy in Gizna, Japan’s fashion and cultural hub. Shiseido started out as a pharmaceuticals company when herbal medicine was the order of the day in Japan. But it outgrew its initial business quite soon when it formulated the winning concept of blending oriental mystique and aesthetics with the technology and science of the Western world. This combination became a strong advantage for Shiseido right from its early days. Soon Shiseido diversified from its pharmaceuticals business. As early as 1888, it launched Japan’s first toothpaste, and in 1897 it ventured into the cosmetic business by launching Eudermine, a cosmetic product. In 1918 Shiseido launched its first perfume, and by 1937 it came out with its first line of cosmetics. Since then, Shiseido has transformed itself into a fully fledged cosmetics company with a wide product line encompassing various aspects of cosmetics, from skin care, to beauty products, to general cosmetics. By the late 1970s, Shiseido started penetrating foreign markets in Europe and the United States with specific product lines. Although the unique concept of blending Eastern aesthetics with Western science provided Shiseido with a strong differentiating factor, it had to extend this beyond a mere concept. Shiseido relied on its core philosophy for guid-