Yahoo Finance Shiseido Aims to Accelerate Digitization Via Joint Venture With Accenture
TOKYO — In a joint virtual press conference Tuesday, Shiseido and Accenture said they would establish a new joint venture company this July. The new company, called Shiseido Interactive Beauty Company Ltd., will provide digital marketing and IT-related services to Shiseido and its group companies.
The joint venture is the result of a strategic partnership between the two companies, which was announced in February. The new company will have an investment capital of 100 million yen and will be majority owned by Shiseido, although the exact ownership percentages were not disclosed. It will be headquartered in Tokyo and will employ approximately 250 people, including staff from both Shiseido and Accenture who are reassigned to the new venture.
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In a press release, Shiseido said that with the establishment of the new company, it “will aim to respond quickly to changing consumers and market environments, accelerate digital transformation, and innovate business models in Japan.”
Masahiko Uotani, Shiseido’s representative director, president and chief executive officer, said during the virtual briefing that the new joint venture is one way that the company will carry out its mission of “beauty innovations for a better world.”
“Our purpose as a company is not to sell beauty products,” the executive said. “It is to use the power of beauty to create a better world.” He elaborated that Shiseido’s ongoing goal is to reposition itself as a “personal beauty wellness company.”
Uotani said the partnership with Accenture will enable the company to not only market to all consumers at once via traditional methods such as television ad campaigns, but also to market directly to individuals based on their unique needs. He said the benefits for consumers will include not only these new marketing models, but also personalized experiences both online and at physical stores. For employees, benefits will include leading-edge digital and IT education opportunities, diverse work styles and greater diversity and inclusion. He said overall, the new company aims to provide benefits to consumers, employees and society as a whole.
Julie Sweet, CEO of Accenture, said the new company will additionally work to achieve a bold mission, empower individuals and embed sustainability by design.
Shiseido previously established digital headquarters in Tokyo and has ongoing digitization initiatives, but Uotani said these will be accelerated and complemented by the technological know-how of Accenture.
“For instance, we will offer unprecedented beauty experiences which cannot be realized solely by Shiseido. As our users undergo virtual makeup and skin diagnostic tests online or in stores, their history can be accumulated in our digital database, and by analyzing the data of purchasing, and research and innovation together, it becomes possible to propose the best in counseling, products and makeup lessons at a place and time of their choice,” Shiseido said in its release. “In addition, we will use the latest beauty technology to seamlessly provide lifelong, personalized services to consumers through various points of contact, both digital and real.”
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