Shiseido outlines three year strategy in bid to ensure growth

Japanese cosmetics group Shiseido Company has unveiled a new three year strategy through which it is looking to make structural shifts to ensure further growth.

Entitled ‘Shift 2025 and Beyond’, the medium-term plan will cover the years from 2023 to 2025, and will tackle a number of factors, including regaining growth in the Japanese market, for which it stated it is looking to achieve core operating profit of over 50 billion yen by 2025.

For its long-term growth plans, the company is striving to strengthen its investment in brand, innovation and people, alongside gaining a core operating margin of 12 percent by the end of the period.

Through its investments, Shiseido said it is expected to generate a cash inflow of more than 400 billion yen, with generated cash to be allocated to IT and digital transformation initiatives.

Key areas for expansion include zoning in on its global brands, such as Shiseido, Clé de Peau Beauté and Elixir, by expanding in Asia, among other strategies, which will see it invest 100 billion yen over three years.

Other areas for investment are that of innovation and R&D, which Shiseido plans to evolve and expand on, and its team, who will be provided with selective programmes and career development support.

In terms of financial strategy, the company said it is aiming to achieve free cash flow of 100 billion yen in 2025, and an EBITDA margin of 18 percent by the same year.