Shiseido Restructures to Merge China and Travel Retail Units Amid Strategic Shift

Faced with sluggish travel retail performance, Shiseido Group is shaking up its global operations. As of March 31, the company has merged its China business with its travel retail division, streamlining leadership and aligning strategy across one of its most crucial markets.

This move comes as part of Shiseido’s 2025–2026 Action Plan, where being “agile in volatile markets” and “creating value with consumers at the core” have become top priorities.

The restructuring introduces two major leadership changes: Toshinobu Umetsu, Shiseido’s China CEO, will now lead both China and travel retail operations. Philippe Lesné, longtime head of the group’s travel retail arm, will retire.

Since taking the reins in 2023, Toshinobu Umetsu has steered the China unit through a reset—exiting underperforming brands like AQUAIR and Senka, refocusing on premium labels like Shiseido, CPB, and NARS, and increasing the group’s local innovation capabilities. These steps have helped Shiseido China return to modest growth, ending a two-year decline.

Travel retail remains a strategic gateway for Shiseido to engage high-end consumers across borders. Earlier this year, the division appointed Fran Law as VP for APAC commercial and business development, tasked with elevating brand performance in duty-free and travel environments.

The newly unified structure is designed to foster synergy between domestic and travel-facing business, especially in a complex and evolving China market. The goal is 3% compound annual growth rate in travel retail sales from China by 2026—a tall order given recent performance.

In its 2024 financial results, Shiseido recorded ¥990.6 billion in sales (up 2% YoY), with China contributing ¥249.95 billion (up 0.8%). While small, that uptick marks a turning point after years of contraction.

Last year, Shiseido also downsized store footprints and corporate offices across China to adjust to macroeconomic headwinds, doubling down on luxury to sharpen its edge. This latest move underscores its intent to simplify operations and reclaim leadership in the region.

Whether the merger translates into tangible gains remains to be seen—but one thing is clear: Shiseido is betting big on China again.