Shiseido Continues Revamp to Focus on Profitability as Competition Increases

Regaining growth momentum in Japan and China, the largest two markets, has been top of Shiseido's postpandemic agenda. The strategic shift of its focus to prestige skincare has enabled Shiseido to channel resources to its core competence. Yet, the bet on China has taken its toll after a notable slowdown in China’s consumption and thus beauty spending. Shiseido plans to beef up marketing investment through 2025, while also downsizing its China and Travel Retail sales presence, which it expects to put the group on a firmer profit trajectory from 2026. Japan’s premium (midpriced) cosmetic sales has recovered well supporting profit. Cost cutting will be key through 2026 as China sales recovery is slow and the industry faces increased competition.