Speaking at the company’s 2021 full-year earnings conference, Chairman and CEO Masahiko Uotani revealed that Udé will join Drunk Elephant and Baum brands in its line of clean and healthy beauty products. durable.
“We spent two and a half years and set up a sustainability team in Europe to explore development projects. And we will be launching a brand called Udé from spring this year that uses plant-based ingredients,”he announced.
Uotani added that the clean and sustainable beauty category has grown for the company.
Drunk Elephant, a US-based clean beauty brand it acquired in late 2019, grew sales 11% in 2021 as the company accelerated its global rollout in markets including Japan, Korea, the Middle East and travel retail.
Following this, Shiseido launched Baum in 2020. The sustainability-focused beauty brand recycles wood scraps from the furniture industry for its packaging and develops products that are over 90% naturally derived on the basis of the ISO16128 standard.
Baum was one of the Shiseido brands slated for an accelerated rollout in 2021. It made its international debut in the second half of 2021 with its launch in China, where the brand saw strong sales during the holiday season.
The launch of Udé is part of Shiseido’s plans to strengthen its “skin beauty” portfolio. In 2020, after dealing the blows of the COVID-19 pandemic, the company refocused its strategy to capitalize on consumer interest in skin health and wellness.
The business plan involved a broad focus on leading skincare brands such as SHISEIDO, Clé de Peau Beauté and IPSA.
Additionally, the company invested in new brands in emerging categories such as clean beauty, beauty devices and beauty supplements.
This led to the introduction of Baum, as well as the beauty device brand EFFECTIM and the inner beauty brand INRYU.
“Based on this strong business portfolio, we will drive innovation. Skin beauty marks accounted for 64% [of sales] last year and it will reach 75% or close to 80%, which should contribute positively to profitability,”Uotani said.
Baum is one of the brands that will play a key role in Shiseido’s plans to improve profitability in China.
“As consumer information changes, consumers increasingly want to select products that are right for them,”explained Shiseido China CEO Kentaro Fujiwara.
“We will incorporate this and sustainability into our marketing, which will gain significant prominence in brand equity in the near future. Specifically, our R&D team in China will send feedback on efficacy and formula and we will engage in activities that foster a culture of refills with the goal of improving brand value with Baum.
For fiscal 2021, Shiseido posted a net profit of 42.4 billion yen ($367.5 million) after suffering a net loss of 11.6 billion yen ($101 million) the previous year. . Its annual net sales increased by 12.4% to 1.04 tn JPY (9.4 billion US dollars).