Shiseido blends beauty and science

The boundaries between cosmetic products and beauty medicine have become blurry.

Tokyo-based Shiseido Co. Ltd. is increasingly blending skincare with aesthetic medicine to meet the growing demand for high-tech beauty products.

“Many consumers these days include aesthetic beauty or the beauty of medicine as part of their care to the skin,” Emi Watanabe, global vice president of product development at Shiseido, told Retail Asia. “The boundaries between cosmetic products and beauty medicine have become blurry.”

Japan’s biggest and one of the world’s oldest cosmetic companies is harnessing new tech, particularly artificial intelligence (AI), to refine product development as consumers expect more powerful results, Yuko Ameno, director of product development at Shiseido, said in the same Zoom interview.

Last year, the company launched its proprietary AI platform Voyager, whose algorithm analyses things like ingredients and the blending ratio, she pointed out.

Another key innovation is Shiseido’s Digital 3D Skin technology, developed with plastic surgeons and Jichi Medical University in Shimotsuke, Japan. The AI-powered tool allows the company to study the internal structure of the skin in great detail using a noninvasive procedure.

The company is also boosting research and development (R&D) investments in Asia, focusing on emerging markets where consumer demand for sustainability, advanced skincare, and holistic beauty is reshaping the industry.

“Asia is a very diverse region, and we have been focusing on countries where we are strong, for example, Taiwan or Thailand,” Watanabe said. “However, we would like to expand more in emerging markets in Asia.”

Shiseido posted a loss of $63.7m (¥9.3b) last year compared with $165.6m (¥24.2b) in profit a year earlier, according to consolidated financial results posted on its website.

Net revenue at the group’s Asia-Pacific business excluding Japan and China rose 6.5% to $490.9 m (¥71.7b).

Shiseido operates three research facilities in Asia—two in China and one in Singapore—that focus on product testing, efficacy, and collaborations with dermatologists and universities.

Watanabe said they have more than 1,000 researchers around the world who work with other research centres, universities, dermatologists, and beauty experts.

Shiseido uses sustainable product packaging and ingredients.

“The purchase of the products is being selected based on sustainable development goals,” Watanabe said. “Developing sustainable container ingredients or manufacturing methodology is an issue or challenge for the cosmetic industry.”

Ingredient transparency has also become critical. “Shiseido addresses this demand by providing clear and detailed information about its ingredients and formulations,” Ameno said.

In 2024, Shiseido gained market share in Asia with products like RevitalEssence Skin Glow Foundation. The foundation, featuring Serum First Technology™, niacinamide, and kefir extracts, became a best-seller in Japan and Korea.

The company also relaunched its Vital Perfection range of products and updated its Future Solution LX line with new formulations and packaging inspired by Kyoto’s Nishijin textiles.

The company’s most recent launch is its Ultimune Power Infusing Serum, the “ultimate aging care  serum based on research on memory T cells, Watanabe said.

Shiseido also has a “Friends of Shiseido” campaign featuring celebrities from Thailand, Korea, Taiwan, and India to bolster its presence in the region.