COVID-19 Impact on Shiseido, H2 2020 Update

Summary

COVID-19 Impact on Shiseido, H2 2020 Update reports key findings as of 1st October, 2020 based on market analysis and brand diversification by industry and geography.

Shiseido's low business diversification implies the company has limited resilience to the COVID-19 outbreak; however, its relatively low share of sales from highly affected regions gives it a slight geographic advantage over its peers. The company is expected to adopt a defensive stance to brace for the impact of the pandemic, and to take steps to expand its base in less affected markets in order to mitigate losses incurred during the pandemic.

Scope

• High dependency on the Asian market, particularly Japan, will affect overall sales of Shiseido.
• A high concentration of sales in Asia will impact the overall performance of the company.
• The skincare, make-up, and fragrances sectors are set to be most affected by the pandemic as consumers continue to stay indoors
• Facial care will be the worst-affected category in the skincare sector for Shiseido.

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