Shiseido Forms Joint Venture To Fuel Digital Transformation
Beauty brand Shiseido is forming a joint venture with Accenture — to be known as Shiseido Interactive Beauty — to accelerate its digital transformation.
The venture, to be majority owned by Shiseido and slated to begin operating in July, will include approximately 250 digital, IT and other resources from both companies, with Accenture additionally supplying employee digital skills training.
In addition to migrating its IT infrastructure to the cloud, Shiseido will tap into data and technology to create new beauty experiences with its digital marketing. This includes leveraging consumers’ digital and in-store browsing and purchase histories — as well as employing augmented reality and other technologies — to recommend new products through skin and makeup diagnostic and personalized services.
As beauty brands have been hit by periodic retail store closures, as well as a reduction or discontinuation of in-store sampling during the pandemic, they are increasingly turning to technologies like AR to provide virtual try-on services. Procter & Gamble’s SK-II brand is currently trialing a pop-up retail store in China that’s leveraging AR and gamification in order to deliver personalized recommendations and experiences to consumers.
Shiseido’s partnership with Accenture marks a continuation of the strategic relationship the two companies announced in February, while its digital transformation is part of a “WIN 2023 and Beyond” corporate strategy. The Tokyo-based beauty company is restructuring in order to strengthen its finances, as well as invest in long-term branding, innovation, supply chain and workforce growth opportunities.
Masahiko Uotani, Shiseido representative director, president and CEO, cited Accenture’s track record in delivering global digital services as an opportunity to help the beauty company create new consumer experiences.
“As Shiseido strives to realize a better world through the power of beauty, digital transformation has become an essential element for Shiseido to respond quickly to ever-changing customers and markets,” he noted.
