Shiseido sales fueled by travel retail
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Japanese beauty giant Shiseido Group has revealed strong sales revenue boosted by travel retail in its mid-year results.
Shiseido sales reached ¥532.6 billion (US$4.8 billion), with ¥47.66 billion ($430.56 million) net income attributable to the business owners, 153.5 per cent above figures for the same period last year.
A major influence on the group’s performance this year has been the 40.3 per cent increase in sales across the firm’s travel retail business.
“In the travel retail business, the benefits derived from active investment in marketing, which included further increase of advertising and promotion in airports around the world, led to continued growth in sales of Shiseido, Cle de Peau Beaute, Nars, and Anessa that far outperformed last year, mainly in Asia,” the company reported.
The company’s sales performance during this period has encouraged management to expect to achieve its “Vision 2020” goal of ¥100 billion ($904 million) in operating income and an operating margin of 10 per cent two years ahead of schedule.
Questions & Answers
Q.Which specific product lines contributed most to the increased travel retail sales?
Which specific product lines contributed most to the increased travel retail sales?
Sales of Shiseido, Cle de Peau Beaute, Nars, and Anessa brands experienced significant growth in travel retail. This performance mainly occurred in Asia, largely outperforming last year's figures for these brands.
Q.What was the main reason for the growth in Shiseido's travel retail business?
What was the main reason for the growth in Shiseido's travel retail business?
The company attributed the growth to active investment in marketing. This included increasing advertising and promotional activities in airports worldwide, leading to higher sales figures.
Q.How much did Shiseido's travel retail sales increase in comparison to other parts of the business?
How much did Shiseido's travel retail sales increase in comparison to other parts of the business?
The firm's travel retail business saw a 40.3 per cent increase in sales, making it a major influence on the group's overall performance. This growth was a key factor in their strong mid-year results.
Q.Has the strong sales performance affected the company's long-term financial targets?
Has the strong sales performance affected the company's long-term financial targets?
Yes, the strong sales have encouraged management to anticipate achieving their 'Vision 2020' goal two years earlier than planned. This goal includes ¥100 billion in operating income and a 10 per cent operating margin.