NEW YORK — Shiseido Cosmetics (America) Ltd. wants bigger pieces of the U.S. department store skin care and color cosmetics pies.
The $190-million New York-based arm of the Japanese cosmetics giant is expanding its largest skin care franchise, called Bio-Performance, while targeting underdeveloped areas of its color cosmetics business. Color represents some 30 percent of the firm’s sales, up from 16 percent in 2000. The moves are attempts to gain ground on competitors like Clinique in the $2 billion skin care market and MAC Cosmetics in the $2.6 billion color category.
Skin care is by far Shiseido Cosmetics America’s biggest business, accounting for 65 percent of the firm’s sales, executives said. Within that portion, the 16-year-old Bio-Performance brand, which now comprises four items, generates 22 percent of sales.
“Bio-Performance is the biggest part of our skin care business,” said Heidi Manheimer, president of the company’s U.S. operations. Citing NPD data, she noted that the Shiseido brand achieved a number five ranking in skin care sales for last year. The Bio-Performance collection, named for the biotech processes employed to compose its ingredients, is expected to generate $33 million in sales this year, or 17 percent of Shiseido’s U.S. business.
In September, Shiseido will introduce Bio-Performance Super Lifting Formula, a facial treatment item. “The goal,” said Bruce Gephart, senior vice president of sales, “is to have this product be the catalyst to bring [Shiseido skin care] forward in terms of share.”
Added Manheimer, “This is clearly [Shiseido’s] biggest launch of the year and should add greatly to our growth.” The last Bio-Performance launch was three years ago, she noted. Industry sources projected Bio-Performance Super Lifting Formula, priced at $72 for 1 oz., could generate retail sales volume of $12 million during its first year in stores.
Tomoko Yamagishi, the company’s vice president of marketing, said in vitro testing of the product’s key, proprietary ingredient — called Super Bio-Yeast Extract — showed it helped stimulate the production of fibroblast cells, which in turn produce collagen and hyaluronic acid.
On the color cosmetics side, Shiseido will introduce 19 Shiseido The Makeup items in August, including its first single eye shadow shades. The company has typically marketed eye shadow compacts containing multiple hues, despite that single eye shadow shades represent 60 percent of the powder eye shadow market. “It’s a huge category we haven’t been part of,” Yamagishi noted. She pointed to NPD figures that put Shiseido at number 11 among prestige color cosmetics brands and said, “Our goal is to be top 10.”
Manheimer noted, “We believe the opportunity for the most growth is in the eyes and lips category. So, the focus of Tom Pecheux [color creator for Shiseido The Makeup] will primarily be on eyes.” The company unveiled the products during an event at Manhattan’s Gansevoort Hotel Tuesday night, which Pecheux attended along with Shiseido model Anouck Lepere, designer Derek Lam, Manheimer, Gephart and Yamagishi.
The August color introductions will include eight Accentuating Color eye shadows — which are also positioned as highlighters and blushes — for $20 each. Also being introduced are two mascaras, called Lasting Lift, in black and brown shades for $19.50 apiece; an item called Enriched Loose Powder, for $30, and a five-shade extension to Shiseido’s $500,000 Perfecting Lipstick business, which was launched in February. The lip colors will be priced at $20 each and three new lip liners will cost $15.50 each. Additionally, Shiseido will launch a 4.2-oz., $24 makeup remover, called The Skincare Eye and Lip Makeup Remover.
The color items could combine to generate $6 million in first-year retail sales volume, according to industry sources.
Bio-Performance Super Lifting Formula and the color cosmetics entries will be carried in Shiseido’s distribution network of 850 doors, including select Saks Fifth Avenue locations, as well as Nordstrom, Marshall Field’s, Bloomingdale’s, Macy’s East, Macy’s West, Barneys New York and Bergdorf Goodman.
Advertising for both initiatives is scheduled to appear in September and October magazines and will feature model Lepere. Bio-Performance advertising will target an older demographic than the color items. An estimated $5 million to $7 million will be spent to advertise the Bio-Performance and Shiseido The Makeup items. The Bio-Performance item will be supported with more than two million direct-mail pieces, 50,000 deluxe samples at retail and a sample-on-card campaign in the October issue of In Style. The color cosmetics will be sampled as well, including 50,000 pieces containing four shades of the Accentuating Color eye shadows and 100,000 samples of the Lasting Lift mascaras in black.
— Matthew W. Evans