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Shiseido Builds On Cosmetics Strengths

NEW YORK — Shiseido is ramping up its color cosmetics offerings with four new products designed to add at least 5 percent to the brand’s color business in the next 12 to 18 months. <br><br>The company will add Creamy Eye Shadow Duos in six...

NEW YORK — Shiseido is ramping up its color cosmetics offerings with four new products designed to add at least 5 percent to the brand’s color business in the next 12 to 18 months.

This story first appeared in the May 16, 2003 issue of WWD.  Subscribe Today.

The company will add Creamy Eye Shadow Duos in six color combinations, each retailing for $25; three shades of Corrective Concealer, $30 each; two types of mascara, Advanced Volume Mascara, $19, and Extra Length Mascara, $19, each in three shades, all in September. As well, the company will add three shades to its lip gloss lineup and three shades to its lip pencil collection. The products will be available in 850 U.S. department and specialty stores.

“Makeup currently accounts for 30 percent of our total business, so it made sense to build on that strength,” said Heidi Manheimer, president of U.S. operations at Shiseido Cosmetics (America) Ltd. “We see a huge opportunity in the category. As well, we’re experiencing 8 percent growth in our overall business, year-to-date. It’s a great time for us to expand our offerings.”

Shiseido relaunched its color cosmetics line after inking a 2000 deal with runway and editorial makeup artist Tom Pecheux to create a new line to replace its core color brand, which had originally been launched in 1989 and created by Serge Lutens. The first offerings from the new collection, Shiseido The Makeup, were launched in February 2001, and the brand has steadily been adding to the lineup since then with new forms and products.

Manheimer noted that foundation currently accounts for the biggest share of the brand’s cosmetics business, “and that’s good news, because you’re gaining a customer for life,” she said. Another large segment for the business is mascara, she said.

Bruce Gephart, senior vice president of sales for Shiseido’s prestige brands division, said the brand’s short-term goal is to build Shiseido’s cosmetics business from 30 percent up to 35 percent of total business, then pushing that to 40 percent within the next few years. “Color is bringing a younger consumer to the brand, which means that we are drawing in new consumers with these products,” he said.

While none of the executives would talk numbers, industry sources estimated that the new color offerings together would do upward of about $5 million at retail in their first year on counter and that the brand would spend about $1 million on advertising and promotion in that time.

The brand is also using a new face globally on the products. Model Anouck Lepere will appear in all print advertising and imagery for both color cosmetics and skin care going forward, noted Gephart. Color cosmetics will be a focus of a national advertising campaign that will break in October fashion, beauty and lifestyle books, noted Tomoko Yamagishi-Dressler, executive director of marketing for Shiseido’s prestige cosmetics division. As well, the brand is planning heavy sampling, with 100,000 samples of its lip gloss and 150,000 samples of its Advanced Volume Mascara planned. The brand will also customize bounceback cards with its retail partners, said Yamagishi-Dressler.