In Decline, The Shiseido Group Undertakes Structural Reforms

These difficulties are part of a tense global context for the beauty sector, marked by a slowdown in demand in China (the Chinese are less interested in Japanese products and local and international competition is increasingly fierce). To restore its profitability, the group has announced a series of structural reforms. These include an early retirement program that will be offered to approximately 200 employees at the head office and several Japanese subsidiaries. Applications will be reviewed next month as part of a strategic plan to reduce costs and refocus resources on markets considered to be promising and on the group's flagship brands.

On Monday, November 10, at a press conference, President Kentaro Fujiwara admitted that the company had failed to effectively reach its target audiences, particularly in certain key markets. This statement illustrates the group's awareness of its less clear positioning between luxury, skincare, and mass cosmetics. Shiseido is now seeking to boost its growth momentum around its high value-added brands, scientific innovation, and sustainable development—the three pillars of its “SHIFT 2025 and Beyond” plan. The group is also focusing on relocating growth to Japan and Asia, while streamlining its international portfolio. In the medium term, the priority remains clear: to restore market confidence.