Shiseido Reorganizes China Business To Revive Sales

Shiseido is reorganizing its business operations in China, which is partly blamed for the cosmetics company’s declining sales overseas. While Shiseido’s operating profit in Japan jumped 43 percent to 18 billion yen for the six-month period ending September 2015, the company suffered a 6.1 billion yen operating loss abroad. Shiseido president Masahiko Uotani came to Shanghai in October 2015 to meet with 140 executives at 62 wholesalers in the country to deal with the sharp drop in sales which started in August 2015. Inventory purchase and liquidation drove down the company’s operating profit by 5 billion yen during the period.