Business of beauty is more about personalisation and catering to individual needs, says Shiseido’s Nicole Tan

Japanese beauty brand, Shiseido, entered India 25 years ago when Indians rarely bought prestige brands in India. But the 150-year-old brand (which started as a pharmacy way back in 1872 in Ginza, Tokyo), chose to stay the course. Today, the brand not only sells high-end skincare products, it has also launched its colour cosmetics brand, NARS as well as Anessa. Nicole Tan, president and CEO (Asia-Pacific), in an interview with Fortune India talk about global beauty trends, especially how prestige beauty consumers are increasingly seeking personalisation.

Excerpts:

You have been part of the beauty industry for several years. It will be interesting to hear from you how the business of beauty has evolved?

I think the beauty business and the consumers have definitely evolved. The channel has evolved more distinctly. Post-COVID, we have seen some exponential evolutions. First and foremost, with the internet, information has become a lot more available. There's also a great enablement of accessibility. With information being available easily, consumers are actually entering the segment at a much younger age. Whether it's makeup or skincare or overall beauty, that's something that we see quite consistently across the board. Due to the information that they gain, they are more demanding - the ingredients, efficacy that it delivers and the technology that goes into it – the consumer is astute with transparency of information, is wanting to know more.

At the same time, we have also seen a great shift towards personalisation. It is no longer one-size-fits-all. It is about what works for me, what works for my lifestyle. It is about what works for my life stage. What we have also seen is, consumers are consuming brands bearing in mind, the values they stand for, and how it helps them as a form of self-expression. So, that has evolved a lot, and of course, from a go-to-market, from a channel perspective, e-commerce has definitely changed the landscape for beauty. Many years ago, none of us would buy a lipstick, or foundation online. Today, it's also no longer about being exclusively offline or online. It is an omni-channel approach. Consumers are expecting different experiences when they shop offline and online.

You just talked about personalisation, how are you catering to that?

India is a land of diversity. Before I came to India, people told me India is a continent and I never understood what they meant. And then when I came, I realised that it's really different states with 28 differing behaviours. The language is different, preferences are different and climate is different. Skin tones are different too. We have been able to address that with our brands. For instance, NARS, which we launched in 2023 October, precisely addresses the diversity of skin tones through the shade offerings that we have in our foundations. We have 30-36 shades in foundation alone. So, 36 shades, just in one franchise, and we have different franchises, with different textures, different finishes, to cater to also to the differing climates across the country. Mumbai, for instance, is a bit more humid, so, we have a formulation, which is a natural mat that's made for this weather. Then in the north, where the weather could be a bit drier, it gets cold as well, we have other formulas.

Our number one selling shade from our foundation is a shade called Punjab. I believe we touch the heart of the Indian consumer. We have carefully curated our portfolio in order to bring the right relevance to the Indian consumer.

We have Shiseido visualiser which helps to understand your skin, tailor your routine, based on your skin condition, maybe your age, your lifestyle. You would be offered products which would be different from your friend, who may be going through a different life-stage.

Every global beauty brand is upping its ante in India. But there are a lot Indian brands especially in the direct-to-consumer segment which are now trying to compete with global brands. What’s your strategy?

I think the prestige segment is a little harder to emulate in terms of the full service they offer, the luxury experience etc. But coming back to your question, competition will always be there. It actually helps to grow the size of the pie. India is not a really mature market where growth rates are in single digits. Competition helps increase the size of the pie, and in the end, expanding it for all brands by providing the knowledge, education and accessibility to the consumer set. I think it's pretty good. It helps to understand what we stand for and how we can resonate with the local consumer in terms of relevance.

Any acquisition plans in India?

Not in the immediate short-term. We believe that we still have a lot to offer from the brand portfolio that we already have in India, and also our portfolio that's not yet in India. There are certain brands that are available in Japan and are not distributed elsewhere that we continue to evaluate for relevance in a market like India.