New Business Model for the Domestic Cosmetic Business -Start of Full-scale Web Marketing-

Transcription

1 2012 Mizuho Investment Conference New Business Model for the Domestic Cosmetic Business -Start of Full-scale Web Marketing- Tatsuomi Takamori Director, Corporate Executive Officer SHISEIDO Co., Ltd. March 1, 2012 In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements. 1 Theme of Today s Presentation Focusing on O2O Marketing Creating a new business model that fully leverages our assets and fuses real and virtual worlds Transforming the competitive environment of the cosmetics market itself O2O = Online to Offline Business fusing real and virtual worlds 2

2 Company Profile Foundation Capital Number of Employees Operating Results billion (As of March 31, 2011) 31,310 12,977 * *The number of employees shown denotes full-time employees. Annual average number of temporary employees is shown in brackets. Year ended March 2011 (consolidated basis) Net Sales billion (overseas ratio 43%) Operating Income 44.5 billion Operating Margin 6.6% Ordinary Income 44.5 billion Net Income 12.8 billion 3 Creation of Food Culture Shiseido Parlour (1902~) L osier (1986~) 4

3 Business Expansion Operating in 88 countries and regions (including Japan) worldwide, with sales subsidiaries in 21 countries and regions, 11 overseas production facilities, and 20,200 overseas employees 51 countries in Europe Iceland France U.K. Belgium Spain Estonia Bulgaria Denmark Latvia Romania Netherlands Lithuania Ireland Poland CzechSlovakia Luxembourg Hungary Ukraine Switzerland Croatia Andorra Slovenia Portugal Italy Norway San Marino Monaco Sweden Malta 3 countries in Africa Finland Cyprus Greece Germany Austria Turkey Lebanon Kuwait Israel Bahrain Jordan Qatar Saudi Arabia UAE Oman Kazakhstan 9 countries in the Middle East India Singapore Russia China Myanmar マー Thailand Vietnam Cambodia Philippines Brunei Malaysia Indonesia Korea Taiwan 15 countries/ regions in Asia (excluding Japan) Japan Canada U.S. Mexico 6 countries in the Americas Brazil Australia Fiji 3 countries in Oceania New Zealand * Number of countries/regions as at February 29, Copyright 2012 Number Shiseido of overseas Co., Ltd. employees All Rights Reserved as at December.No reproduction 31, without 2011permission. Shiseido s Hallmark Hair Care Line 6

4 Global Brand Sold in 88 countries and regions 7 Top-end prestige brand 8

5 Four Designers Fragrance Brands PARFUMS ISSEY MIYAKE PARFUMS JEAN PAUL GAULTIER parufums narciso rodriguez ELIE SAAB LE PARFUM Launched in 1992, sold in 107 countries/regions Launched in 1993, sold in 107 countries/regions Launched in 2003, sold in 74 countries/regions Launched in July, 2011 As of the end of December Professional Business Aromatherapy brand Acquired in 2000, sold in 85 countries/regions Luxury aesthetic brand Acquired in 1986, sold in 58 countries/regions As of the end of December

6 800 Trend in Sales and Overseas Sales Ratio Overseas sales ratio increased 25P in 10 years. Overseas sales ratio 50.0% Consolidated net sales 43% 2 5 P 45.0% 40.0% 35.0% 30.0% 25.0% % 20.0% 15.0% 10.0% 5.0% 0 Billion of yen 0.0% /3 11 Domestic Cosmetics Business: Sales Trend Sales have weakened since Lehman shock in FY

7 Changes in the Japanese Market 13 Changes in the Environment Surrounding Japan Challenges for Japanese companies Strong yen High corporate tax rate Changes in the Cosmetic Market The influence of IT Aging population Great East Japan Earthquake New entrants from outside the cosmetics industry Need to reduce emissions Power shortages Alliances in the retail industry 14

8 Development of Information Technology There are no longer any geographical or time restrictions on information. Changes in customers buying behavior 15 Changes in Customers Buying Behavior Consumers have evolved into originators of information. Information (culture, fashion, consumption) Information (culture, fashion, consumption) Top down Bottom up Top down One-Way Both Directions Mass audience of obedient receivers Connecting and communicating with each other across the Internet From Information Consumers to Information Originator 16

9 Changes in Customers Buying Behavior Comparing and browsing across categories Shopping without any geographical boundaries or time restrictions Companies must also change their marketing activities 17 Music Industry Dramatic Sales Decline of the Retailers which Mainly Sell CDs. 18

10 Publishing Industry In contrast to the rise of Amazon, the number of small and midsize books stores is falling. 19 Influence of IT on the Cosmetics Market Cosmetics Ranks the Fourth in the Internet Sales Ranking Survey of individual purchases via the internet over a one-year period Publications Fashion ン (clothes, bags, shoes, accesarries) IT related products( Computers) Cosmetics Music, Movies, Games Travel Audio-Visual( TV, DVD, Camera) (%) 45.7 Fresh Food(Vegetables, meat, fish etc) Confectionery Packaged food Health food Beverages Rice Household goods (shampoo, detergent) Alcoholic beverages Base For %; 1,231 20

11 New Business Domains Existing Store Sales Business Plus Entry to Platform Business Deployment of Direct Marketing 21 Entry to Platform Business 22

12 Name of Website Online added-value shopping mall established to create encounters with new customers Users lead beautiful, enriched lives Beauty Enterprises, experts and users become friends and cooperate with each other Company 23 Attract Enterprises in Six Categories Pursuit of beauty from without Enrich Pursuit of beauty from within Cure Medical Dress up Fashion Beauty Living beautifully Heal Relaxation Fulfill Healthcare Cultivate Sophistication 24

13 SHISEIDO s New Direct Marketing 25 Name of Website Providing various advantages for watashi = me (the customer) Watashi is a word that denotes the first person, meaning I or myself. 26

14 Major Contents of 11 Online counselling 22 Store navigation 33 Online shop 44 CRM using customer database 27 28