Analyzing the Issues of Declining Revenue in Shiseido Group

Xinyi Lou

doi:10.54254/2754-1169/33/20231651

Research Article

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Published on 10 November 2023

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Lou,X. (2023). Analyzing the Issues of Declining Revenue in Shiseido Group. Advances in Economics, Management and Political Sciences,33,153-161.

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Analyzing the Issues of Declining Revenue in Shiseido Group

Xinyi Lou *^,1,

¹ Sichuan Academy of Fine Arts

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/33/20231651

Abstract

The popularity of COVID-19 has led to a change in Shiseido China's revenue profile, with changes in turnover and operating profit between 2020 and 2022. The purpose of this paper was to explore the reasons for the decline in Shiseido China's turnover and profitability and make recommendations for improvement. The paper applied analysis and observation of Shiseido's revenue data, relevant data from the National Bureau of Statistics, and revenue data from competing brands, and combined theoretical knowledge in marketing to conclude that the first reason for the slow growth in Shiseido China's revenue and decrease in profit was the decline in product sales, with suggestions for making more use of China's emerging platforms for marketing and sales activities in response. The second reason for the slow revenue growth and profit decline in Shiseido China was that Shiseido was facing an aging brand crisis and was not appealing to young consumers. The recommendations in this paper were to enhance the brand rejuvenation of the Premium brand to increase its appeal to young people. The third reason for Shiseido's slow revenue growth and profit decline in China was the shift in consumer motivation that drives Chinese consumers to spend and Shiseido's failure to make timely strategic adjustments. The suggestions for improvement in this paper were to refocus cosmetics marketing campaigns, accelerate the rate of market research and strategic policy improvement, and establish a more dynamic mechanism.

Keywords

Shiseido, China, COVID-19 pandemic, marketing strategy

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Cite this article

Lou,X. (2023). Analyzing the Issues of Declining Revenue in Shiseido Group. Advances in Economics, Management and Political Sciences,33,153-161.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

Conference website: https://www.icemgd.org/

ISBN：978-1-83558-087-5(Print) / 978-1-83558-088-2(Online)

Conference date: 6 August 2023

Editor：Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.33

ISSN：2754-1169(Print) / 2754-1177(Online)

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