Shiseido Blends AI, Omnichannel Retail and Slow Ageing to Meet Modern Beauty Demands

Shiseido’s Strategy: Blending AI, Physical Retail, and Slow Ageing Trends

The beauty industry has transformed significantly over the last decade, pushing brands like Shiseido to adapt their strategies to meet changing consumer demands. Shiseido is integrating technology and market trends to stay relevant in a competitive landscape.

AI Enhancing Personalized Customer Experience

Shiseido employs an AI-powered visualiser device that captures high-resolution facial images to analyze skin condition and blood circulation beneath the skin. This technology, combined with a brief questionnaire, provides customers with personalized skincare recommendations rather than generic product suggestions.

This approach allows Shiseido to offer a tailored experience, addressing individual skin needs more precisely and improving customer satisfaction.

Combining Online and Offline Channels

Shiseido recognizes that an effective sales strategy requires both strong brick-and-mortar presence and robust online platforms. In Singapore, the brand operates 23 physical stores and has a footprint in 10 department stores, alongside three online stores.

While many consumers prefer shopping online for convenience, physical stores remain essential for customers who want to test products before buying. Shiseido’s model integrates these channels to complement each other, ensuring customers have multiple avenues to access their products.

Responding to the Slow Ageing Trend

One of the key market trends Shiseido is capitalizing on is slow ageing, which emphasizes prevention and long-term skin health over just treating visible signs of ageing. The launch of the new Ultimune serum in March targets skin resilience and the root causes of ageing, expanding the existing Ultimune product line.

This focus aligns with consumers’ growing interest in maintaining skin health proactively, rather than reacting to ageing symptoms.

Ingredient Transparency and Consumer Awareness

Post-pandemic, consumers have become more conscious of the ingredients in their skincare products. Shiseido addresses this with a diverse portfolio that includes brands like the US-based Drunk Elephant, known for offering skincare “cocktails” — combinations of serums and moisturizers tailored to the user’s specific needs.

This strategy meets the demand for greater ingredient transparency and personalized skincare options.

Expanding Market Reach

Shiseido is actively expanding into new markets by introducing relevant brands to resonate with local consumers. For instance, in 2023, it launched the US cosmetics brand Nars in India as part of its growth plan.

Despite market challenges, Shiseido continues to gain market share by focusing on relevance and building strong local talent to support its operations.

Commitment to Inclusive Leadership

Leadership diversity is a priority for Shiseido, with women occupying 67% of director-level and above positions. Nicole Tan, the first female CEO of Shiseido Asia Pacific, emphasizes fostering an inclusive and positive work environment that attracts and retains top talent.

This focus on talent and culture supports the company’s broader growth and innovation goals.

Shiseido’s approach highlights the importance of combining technology, consumer trends, and market expansion while maintaining a balanced physical and digital presence for sustained success.