Shiseido faces stock slump after action plan dissatisfies investors
Shiseido’s stock has fallen to its lowest point in eight years after an underwhelming strategy plan to address its sales drop in China disappointed investors. To alleviate this pressure, it said it would focus on growth in other regions — however, the plan was not satisfactory, causing its shares to crash.
Shares sank 8.4% at the peak this morning, the lowest Shiseido has experienced since November 2016. The stock is down 6.62% at the time of publication.
Shiseido’s operating profit margin target was moved to 7% for 2026, a decrease from the 9% previously set for 2025. However, this new forecast is double what the brand is projected to achieve this year, according to Bloomberg.
Unsatisfied market
Shiseido is trying to drive growth in Japan and other major markets to compensate for its dip in China. The brand has experienced tension in the region after Japan released treated wastewater from a Fukushima nuclear plant into the Pacific Ocean.
This sparked Chinese users on social media platforms to champion a viral boycott campaign against Japanese personal care brands. Chinese citizens compiled blacklists of Japanese beauty brands to no longer purchase from, out of fear that the products contain radioactive materials. These allegations were unproven, with some experts flagging the boycott as a cause of Chinese nationalism.
In the action plan, Shiseido attributes the decreased Chinese sales to “volatile market conditions.” The company says it will rebuild a “sustainable business foundation” in China and Travel Retail and accelerate growth in Japan, the Americas, EMEA and Asia Pacific.
China is the second most important market for Shiseido, after Japan.
In its plan to boost sales in China, the cosmetics company stresses that it will “regain unique brand equity” and invest in products and campaigns with a global and localized marketing strategy.
The plan also emphasizes a focus on “key” brands, spotlighting R&D and technology. Some of these brands include Nars, Drunk Elephant and Narcisco Rodriguez.
However, the plan did not seem to sway the personal care market, and the shares reflected this disappointment.
Shiseido recently introduced an online beauty consultation service tailored for customers with hearing impairments, offering personalized consultations via sign language, lip-reading and chat features.
The J-beauty brand spoke to Personal Care Insights from In-cosmetic Asia, which took place earlier this month in Bangkok, Thailand. Tomo Osawa, director of the Regional Asia Pacific Innovation Center at Shiseido presented at sessions, focusing on the well-being of people with skin concerns and the elderly.
