INTRODUCTION

Shiseido Company is the leading cosmetics company in Japan and the four-largest in the world. in more than 60 countries abroad, Shiseido (pronounced ‘she-say-doe’) offers a variety of make-up, skin care, hair care, body care, sun care and fragrance products. In Japan and selected foreign countries, the company markets additional products, including toiletries, health and beauty foodstuff, pharmaceuticals and fine chemicals. In addition to the flagship Shiseido brand, the company markets products under a number of other brands including Aqua Label, Benefique, d’ici la, Elixir Superieur, Integrate, Maquillage, Tsubaki and Uno. Shiseido has built a network of some 25,000 franchised cosmetics retail outlets in Japan, both stand-alone and within department stores and supermarket; additional retails outlets are located overseas, particularly in China. Going beyond company controlled outlets, Shiseido products are distributed through approximately 83,000 stores in Japan and about 39,000 overseas. The company also runs various salons, upscale boutiques and restaurants. Of Shiseido’s sales, about 79 percent come from its cosmetics division, about 9 percent from its toiletries division, which comprises soaps, hair-care products, mass market cosmetics, and fine toiletries and the remaining 11 percent from catch all others division which includes beauty salon products, health and beauty foods, pharmaceuticals, fashion goods and fine chemicals. In global, Shiseido now derives nearly 30 percent of its sales from outside of Japan. The company’s various products are manufactured at eight plants in Japan and a dozen abroad.

BACKGROUND OF SHISEIDO

Shiseido was founded in 1872 by Yushin Fukuhara and known as the oldest and fourth largest cosmetics company in the world. Arinobu Fukuhara, former head pharmacist to the Japanese Imperial Navy introduced Japan to its first Western-style pharmacy in Ginza, Tokyo after travelling to the United States and Europe. Shiseido’s early success arrived through building a clientele of royalty and high society through which its reputation spread and popularity grew. Fukuhara’s son, Shinzo is a talented art photographer was responsible for introducing his father Yushin and brand Shiseido to art which Shiseido combined with their technology driven roots. Over the next 20 years Shiseido shifted from pharmacy based products to cosmetics with the introduction of their still popular today Eudermine skin lotion. Other Shiseido products included superior toothpaste and ground-breaking white face powder.Shinzo continued to groom Shiseido and asserts is artistic influence on the company with Shiseido becoming renowned for cutting edge artistic advertisement whilst maintaining the company’s core philosophies of high image, high quality and high service. With ever growing demand and popularity, in 1923 Shiseido launched various chain stores around Japan and in 1927 Shinzo become the first president of Shiseido as the company was incorporated as a joint-stock company. During mid-1930s Shiseido began to develop an advertising brand of its own, a development of its Japanese and Western influences. The brand created was of an idealized woman fulfilling her and potential. From 1957 onwards Shiseido quickly began to move forward with a focus on international expansion throughout the 60s with the development of products for the international market. In 1965, Shiseido established subsidiaries in the USA, 1968 Italy and in 1980 France and Germany. With the help of French artist Serge Lutens was charged between 1980 and 1999 with becoming the brand’s international image creator. Playing on Shiseido’s already strong artistic heritage he developed an image of refined beauty drawing on Eastern and Western culture. 1980 saw Shiseido’s first skincare line and 1988 the introduction of an anti-ageing line. Shiseido continued with its product development introducing a sun-care line in 1993 and other lines such as fragrances in the later 90s. The year 2000 saw the introduction of Shiseido’s ‘The Skincare’ line which continues to lead Shiseido today with a focus on anti-ageing, protective and restorative properties. 2004 saw Shiseido introduce a line specifically for Apes and Gentleman around the world; Shiseido for men. The entire skincare ranges just for men, from shave cream to moisturizer. This was recently followed up with the Zen range. Today Shiseido continues to develop innovative skincare and associated products.
CURRENT ISSUES OF SHESEIDO

Currently, Sheseido Company Ltd. had faced several issues regarding its operation, products and market share in all around the countries such as Malaysia and TurkeyThe following is all about the issues that been faced by Sheseido. In Malaysia, Sheseido had penetrated this country since in 1959 through a small trader and in 1977 it signed up a sole distributor. Today Sheseido had its own subsidiary named Sheseido Malaysia Sdn. Bhd. which established in 2005. This company also had distributed its minor brands such as ZA, Marjolica Marjoca and Tsubaki in Malaysia. This company ranked as a fourth luxury skincare in Malaysia and it is the only Asian brand on the list. Sheseido try to expand its market share in Malaysia by open at least eight beauty counters within the next three years due to the increased number of opening mall for each year in this country. There are about 69 Sheseido counters in Malaysia and the Sheseido counter at Isetan KLCC is the best performing outlet. The strong customer’s loyalty, new products, additional stores also drives this company to expand more of its market share. Sheseido also want to expand more on its target market especially Malay since this brand are only remains popular among the Chinese. They are also hoping to increase of its male customers for the next two years. Sheseido Company Ltd. had penetrated Turkey’s market since through an agreement with the Turkey’s local cosmetic importer and distributor, Vesco Kosmetik Urunleri in 1998. This agreement had seen how Sheseido expand its market share by selling its products in more than 170 stores around Turkey. Today, Sheseido Company Ltd. Had continued to increase its market share by having a joint venture with Vesco Kosmetik Urunleri and form a new company named Sheseido Kosmetik Anonim Sirketi. This new company headquartered in Istanbul and the business will begin to operate in January 2012. By expanding more its market share in Turkey, this company aim to get a target market from a young population with age below 29 years old. The factor that derived Sheseido to enlarge its market is due to economic growth in Turkey which leads to the rise of income of its citizens. Since Sheseido is a luxury cosmetic brand, not all people are affordable to buy this kind of brand. The rise of income also lead to the Turkey’s consumers being more sophisticated about investing their money to buy cosmetics and personal care products and this opportunity had taken as an reason by Sheseido to penetrate and continue to enlarge its market share in Turkey.
RECOMMENDATION

CONCLUSION
In a nutshell, apart from being market leader in Japan, Shiseido is putting a lot of efforts into research and development. It focuses on customer relationship management and environmental protection. But even though the R&D is a cornerstone of Shiseido’s corporate philosophy, only 5% of the products are patented. This makes the company very vulnerable to competition. In order to reach customers, there are opportunities for Shiseido looking to create strategy in introducing the men’s cosmetics line opened door to high potential new market. Thus forming strategic alliances especially with foreign companies may lead to the new way to new markets. Searching for new market chances important because of various threats such increasing in competition in existing markets or shift in consumer needs away from complex, high class products to class cheaper self-selection products.