Shiseido, a major player in the cosmetics industry, aims to turn around its sales performance in China and travel retail channels in fiscal 2024. These areas faced challenges in 2023, especially in China, where sales plummeted due to a boycott of Japanese products, including cosmetics, sparked by concerns over water discharge from the Fukushima nuclear reactor.
Despite expecting continued impact on Chinese sales in Q1 2024, Shiseido anticipates gradual recovery starting in Q2. For the fiscal year, the company projects a modest 1.1% increase in net income and a 2.8% rise in revenue.
In 2023, Shiseido saw a significant decline in net income, partly due to one-off effects from factory sales and mergers. Revenue also dropped, primarily due to struggles in China and the travel retail sector, despite growth in other regions.
The travel retail segment in Asia has been particularly challenging due to stricter regulations in China and South Korea, affecting duty-free sales, including those in Hainan island, a popular duty-free destination in China.
