Shiseido taps AI, online channels and slow ageing trend to stay relevant
SHISEIDO Asia Pacific president and CEO Nicole Tan said brick-and-mortar outlets remain a key part of the brand's strategy and appeal. ST PHOTO: NG SOR LUAN
SINGAPORE - The beauty industry has changed significantly over the last decade, and beauty companies have had to adjust accordingly to stay relevant. Among them is Japanese beauty brand Shiseido, which is tapping technology to better meet evolving consumer demands.
One key move has been the integration of artificial intelligence (AI) into its customer experience. Shiseido offers a visualiser device that captures detailed facial images to assess skin condition as well as blood circulation beneath the skin's surface.
'The visualiser takes a photo of your face and is able to capture not just the condition of your skin but also the circulation in your skin,' said Ms Nicole Tan, president and chief executive officer of Shiseido Asia Pacific.
Combined with a short customer questionnaire, this technology enables a personalised skincare experience for customers, as opposed to generic product recommendations.
Shiseido has also expanded beyond operating solely in physical stores to also having a strong online presence, with its products now available on e-commerce platforms like Shopee and Lazada.
'Online platforms have become a viable and indispensable avenue to shop and are complementary to the brick and mortar business model,' said Ms Tan.
She added that brick-and-mortar outlets remain a key part of the brand's strategy and appeal.
'Although consumers like to cart out their items online, they still like having a physical store where they can try out the items, which is why we incorporated both brick-and-mortar shops and online platforms into our business model,' said Ms Tan.
'It cannot be one or the other; selling both online and physically have to go hand-in-hand.'
Shiseido's growth strategy includes listening to and being aware of changing consumer needs with market trends, said Ms Tan.
One of the biggest trends observed in recent years is the rise in demand for slow-ageing beauty products, or products that slow the process of ageing.
Slow-aging is a movement focuses on prevention and long-term skin health rather than simply treating visible signs of ageing.
In line with this trend, Shiseido launched its new Ultimune serum in March, targeting skin resilience and the root causes of ageing.
The new addition to Shiseido's Ultimune series will add to its current product portfolio, which includes brands from Japan, the United States and Europe, including Shiseido, Anessa and Issey Miyake.
Another part of Shiseido's growth strategy is also catering to customers who are now more aware and concerned about the ingredients in their skincare and beauty products, said Ms Tan.
'During and after the Covid-19 pandemic, we know that many consumers are having an increasing level of awareness and concern about ingredients that go into their products,' she said.
For customers who want more ingredient transparency and control over the type of skincare they use, Shiseido's portfolio now also includes US brand Drunk Elephant, which offers its users skincare 'cocktails', which are combinations of serums and moisturisers tailored to individual needs.
Shiseido's growth strategy includes listening to and being aware of changing consumer needs with market trends, said Ms Tan.
ST PHOTO: NG SOR LUAN
Shiseido is also focusing on expanding into new markets. In 2023, for example, it launched US cosmetics brand Nars in India.
'This is part of our growth strategy – increasingly looking at our portfolio of brands and bringing to our markets the brands that are relevant and resonate with the market,' said Ms Tan.
While the market has been very challenging, the good thing is that Shiseido has been consistently gaining market share, said Ms Tan.
'We'd like to continue in that aspect to do well and do well in each of our markets by being intentionally relevant. I think what's important is continuing to build the talent that we have,' she said.
Shiseido is also diverse in terms of female leadership – with 67 per cent of women in director-level positions and above, said Ms Tan, who is the first female CEO for Shiseido.
'It'll be a key priority that we continue to focus on, ensuring that we have a positive work environment that's inclusive and a home for talent, so that talent chooses to come (to our company),' she added.
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