Shiseido's China Growth Slowdown Looking Permanent, but Prestige Remaining Long-Term Growth Engine

Rationalizing the business/brand portfolio with a priority centered on prestige skincare and China is the key strategy of the midterm plan ending 2023. Skincare innovations, Shiseido’s core competence, will remain a key driving force to fulfill its ambitions of achieving JPY 2 trillion in sales with an 18% operating margin by 2030. Acceleration of China’s premium skincare growth, alongside divestitures of noncore or unprofitable businesses, will lead the margin expansion, with an interim target set at 15% by 2023.