Maintaining a beautiful tradition Shiseido Australia Pty Ltd

From its humble origins in 19th century Japan, Shiseido has risen to become Japan's number one cosmetics manufacturer, and a market leader in luxury skincare products around the world. Innovative product development and a focus on customer satisfaction have seen Shiseido become a household name in Australia for people who pride themselves on beautiful and healthy skin.

Shiseido is Japan's number one cosmetics maker and fifth in the world. Its products have an excellent global reputation, and are well established in Europe as luxury goods. The brand has enjoyed considerable growth in Asia in recent years, particularly in China.

The world's first cosmetics company, Shiseido was founded in Ginza, Tokyo in 1872 by Arinobu Fukuhara. Since then it has led the market in Japan for high-quality skincare cosmetics. Shiseido has been influential in developing groundbreaking new skincare products, including the creation of its popular "softening lotions", and the 1987 breakthrough called "hyaluronic acid", of which Shiseido owns the patent. Now, 136 years after its inception, the company is headed in Japan by president and CEO Shinzo Maeda.

It was 1973 when Shiseido first began selling its products through agents onto the Australian market. Local company Shiseido Australia was established later in 1982 as a wholly owned subsidiary of the parent company. A "Mini Shiseido Exhibition" was held in 2002 to commemorate the 20th anniversary.

The company now has Shiseido counters in 100 department stores and 100 pharmacies throughout Australia. Although Shiseido has already developed a wide range of products, it is trying to boost its brand in the luxury category in Australia.

Items such as sun-protection products have been specifically designed for the Oceania region to complement Australia's climate and comply with its laws. This year also saw the introduction of professional-use products aimed at hair salons.

Shiseido is among Australia's top five prestige cosmetics brands for skin care. It has a large share in sun protection as well, ranking second in that market. With a focus on skincare, the company strives to provide Australians with high-quality cosmetics through service that evokes the Japanese spirit of hospitality.

Shiseido will also release its new ZEN fragrance in September this year. This fragrance, imbued with Japanese culture and spirit, is planned to be available Australia-wide.

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Who's the boss? Interview: Tatsuya Nagai Managing director Shiseido Australia Pty Ltd Mr Tatsuya Nagai joined Shiseido after he graduated from Keio University in 1992. He spent 1996 in Vietnam as a research student for the company. In 1999 he joined the international business division at Shiseido's headquarters, taking responsibility for the Asia-Oceania division. He became managing director of Shiseido Singapore in 2004, managing director of Shiseido New Zealand in 2006, and from 2008 has been managing directorof Shiseido Australia and managing director of Shiseido New Zealand. Mr Nagai's hobbies include golf, listening to music and reading books. He appreciates Australia's "exquisite match" of city and natural environment.

What characteristics do you think make the Australian cosmetics market unique?

Mr. Nagai: I think that the major characteristics of the Australian market are that makeup and fragrances enjoy a big share compared to other markets. Australian customers are particular about makeup and are conscious of the cosmetics they use, especially foundation. I also feel that Australian people have an enthusiasm and sense of curiosity with respect to fragrances, more than people in other countries. Yet this country seems to still be less conscious than others about skincare cosmetics. Despite the fact that sun protection is particularly important in Australia due to its strong ultraviolet rays, Australia seems to be less concerned with ultraviolet protection than Asian countries.

What business developments do you see as necessary considering those characteristics?

Mr. Nagai: I think that daily skincare is very important for maintaining skin that is beautiful and youthful. I believe that it is this company's job to use our strengths to let Australians know more about the importance of skincare. We would like to introduce skincare through consultations that are grounded in Japanese courtesy and hospitality.

We would also like to introduce the Japanese cultural aesthetic through our fragrances, increasing the number of customers who are fans of Shiseido and all things Japanese.

Our priority is to let people know the joy of having beautiful skin, and we would be happy to see our company grow in the market as a result.

Tell us about some specific business developments and the response to them.

Mr. Nagai: The cosmetics industry is one that sees growth once customers grow fond of a product and continue to use it over a long period of time, so there is no simple overnight answer to ensuring big growth. We would like to earn the devotion of Australian consumers by striving towards business activities that are 100 per cent customer oriented, and in doing so raise the level of Shiseido's significance to the Australian market. I am thankful that Shiseido Australia has wonderful, hard-working employees who I believe will help this plan be realised.

What are your hopes for the future of Shiseido Australia?

Mr. Nagai:We will continue to work hard into the future to let more Australian customers know about the Shiseido group's great products. We will be introducing our professional range of products this year, and I hope to increase the number of brands and items on offer to customers so that they may enjoy greater beauty and joy through our company's products and services.