Shiseido Americas has recently appointed Alberto Noe as its permanent CEO, following Ron Gee’s departure earlier this year. Noe has an extensive background with Shiseido EMEA, where he dedicated over a decade, notably serving as the CEO and president of the Italian division. Before joining Shiseido, he held significant roles at prestigious brands such as Lancôme, Chanel, and LVMH Moët Hennessy Louis Vuitton. With Noe now officially leading both the Americas and EMEA regions, he brings a wealth of experience that positions Shiseido for future challenges and opportunities.
In addition to Noe’s appointment, Shiseido has announced several other executive changes aimed at invigorating its leadership. Key figures, including Angelica Munson and Tomoko Ikeda, have stepped down, while other executives have been promoted to lead their respective departments. Makoto Toyoda has now taken on the mantle of chief information technology officer, and Hidefumi Araki will oversee global brand and product innovation. These shifts reflect Shiseido’s intent to reinforce its foundation while adapting to market dynamics.
Amid these leadership changes, Shiseido has unveiled plans to reduce its workforce in Japan by approximately 200 positions as part of an early retirement initiative called the “Next Career Support Plan.” This decision underscores the company’s commitment to restructuring its operations in response to fluctuating market conditions, particularly as they face the challenges of a global economic environment.
Financially, Shiseido recently reported a dip in net sales, with figures hitting 693.8 billion yen in the third quarter, which is a 4% decrease compared to the same period last year. The decline has been largely attributed to underperformance in markets like China and travel retail, along with challenges faced by Drunk Elephant, a skincare brand acquired in 2019. The brand’s performance has fallen sharply, with reported sales dropping by 25% in 2024, raising concerns about its future within Shiseido’s portfolio.
The struggles of Drunk Elephant have been compounded by product recalls and customer dissatisfaction. Last November, the brand had to recall certain products due to a mix-up in ingredients during production, raising questions about its quality control. To regain traction, Drunk Elephant is planning marketing campaigns that resonate with consumers while emphasizing clinical efficacy, aiming to revitalize the brand’s presence in a crowded market.
Going forward, Shiseido is navigating a complex landscape. On a regional basis, sales in the Americas experienced a 9% decline, while EMEA saw a growth of 4%. With expectations of net losses amounting to 52 billion yen for 2025, challenges remain. However, the recent leadership appointments and strategic changes signal Shiseido’s proactive approach, as the company works to adapt and thrive in a competitive beauty industry landscape.
