Shaping the
Future of Beauty

IR Presentation | Digital Transformation
Angelica Munson, Chief Digital Officer
Amit Naik, Head of Data and Analytics

Agenda❖Digital Transformation Journey❖

Impact❖Future Focus

OUR MISSION IS

BEAUTY INNOVATIONS FOR A
BETTER WORLDHelloAngelica Munson
Chief Digital Officer

Amit Naik
Data & Analytics
Lead

Roxanne Ong
Strategy & Education
Lead

Welington Fonseca
Consumer Engagement
Lead

Aya Mitake
ProgramManagement Lead

Omer Iqbal
Digital Architecture
Lead

Yuichiro Mori
Skin Data Science
Group Manager

1 IRREVERSIBLE
Consumer Shift To Digital

INVESTMENTS
2 COMPETITIVEIn Digital, Data & Tech Competencies

HEALTH & WELLNESS
3 BEAUTY:
Growth through Digital & AI

4 OMNICHANNEL
Future of RetailTech Advancements & Consumer Behaviors Lead to

New Economic Paradigms & Opportunities• Applied AI and ML• Super Processors• 5G/6G• AR/VR• Blockchain• Big Data

• IOT & Sensors• Spatial Computing• Cloud & Edge Computing

The

The

The

INTELLIGENCE ECONOMYDIGITAL

CREATORSECONOMYECONOMYTransformation Journey…

2030

SHIFT 2025
WIN 2023
VISION 2020
2016
1
ESTABLISH
Creation of the COE tonurture strategic initiatives
and alignment acrosseCommerce, digitalmarketing, analytics andeducation.

2021
2017 -2018

3

2

SCALE

DEPLOY

Formation of the Digital
Transformation Office in
HQ to scale EC, CRM, Data
& AI practice. Accelerate on
People transformation for
Digital. Intensify maturityof previously establishedprograms.

Installation of regional
digital teams to develop
market competencies in
eCommerce, CRM, data
centralization and digitalskills. Launch virtual
services programs, derive
consumer insights, testand-learn initiatives.

2023
4
EVOLVE
Create new business value
in digital, powered by data,
AI powered, strategic
partnerships and crossfunctional teams. Mature
extraction of data value toserve the purpose of
secondary functions in thevalue creation chain.

5
TRANSFORM
Open, collaborative, datadriven approach to designing
products and services.
Innovation part of a wider
digital ecosystem orchestrating
dynamic network, accelerating
Shiseido’s ability to adapt tochanging customer demands
and market forces.

3 key initiatives positioning us to quickly shift our businessto meet the surge in consumer demands

1
Architect a unified and connectedecosystem across geographies,
brands and businesses. Empower
Regions, Global support.

2

3

Equip our brands and businesses with Build digital & data literacy
the tools and teams to growacross our workforce, to navigate
EC, consumer engagement,
digital world and disruptions withmaximize customer value, collectconfidence, resilience throughdata, valuable assets.
data-driven decisions.

2016
Siloed, Fragmented
With Significant Impact to…

CAPABILITIESCOSTCUSTOMER

MEASUREMENT

2016

2017

2018

2019

2020

CONTENTMANAGEMENTSHISEIDO
DIGITAL
ACADEMYGLOBAL
D2C

CRM, ANALYTICS& INSIGHTSCAMPAIGN
ORCHESTRATION,
MARKETING
AUTOMATIONSOCIALMEDIA
LISTENING✓ Global D2C
Expansion:
Ecommerce andMarketing✓ Journeys,
Segmentation✓ Strategy Playbooks✓ Insights, Trends✓ Guidance✓ Competitive
Tracking✓ Partner network
consolidation enhanced SL✓ Data Democratization ✓ KPI scorecard
and training✓ Digital Activation
Center

GLOBAL✓ Activation✓ Crisis & Risk
Management✓ Digital Assets for D2C,
partner networks✓ Tailored Learning Paths✓ BH, Regional empowerment✓ Syndication, Tracking

TRANSVERSALREGIONAL
DIGITAL TEAMS✓ Multi Languages✓ Advanced
Certifications

SCALABLE✓ Digital Service
Teams✓ BH Digital support✓ Cross Functional
Partner Network

A Unified, Data-Driven Digital Platform Powered for Growth
By the end of 2020:
DATA &ANALYTICS

MARKETING
& CRM

90+
92

82
88

39M
47M

25%*

DIGITALFLAGSHIPSCONNECT
CONNECTINSTANCES
INSTANCES

CONSUMERCONSUMERPROFILES
PROFILES

ECOMMERCERATIO

DIGITAL FLAGSHIPSCHANGE& EDUCATIONnDIGITAL
PRACTICESSERVICING
THE CONSUMERJOURNEY

CONTENT*2020 Full Group Portfolio

SOCIALMEDIA

DIGITALCOMMERCE

enrolled nearly

8,000
4,500

STUDENTSADVANCED
CERTIFICATIONS

By the end of 2020, huge
strides in our Digital
Transformation journey andready to tackle the next
chapter of change.

When COVID-19 hit, wewere able to quickly shift our business tomeet the surge in demand through EC
channels and services like live streaming,
VTO and BC ChatDrive growth through data insight, consumer engagement and beauty techenablement to maximize corporate value and increase digital fluency across Shiseido.

Mission
Roles

StrategyInnovation

Analytics &Insights

ChangeManagement

ConsumerExperience

Ecosystem &Partnerships

Six Strategic Priorities

Beauty Focus: Multi Touchpoint experiences 2 E-commerce & Omnichannel Acceleration:
1 Skininformed by data , enhanced by beauty tech.

Increase Digital Commerce footprint across all
EC channels. Improve consumer engagement.

Marketing: Drive the global shifts of
4 Digital
media to digital delivering maximum
effectiveness.

Transformation: Strengthen our
5 Peopleorganizational structure and talent acquisition,
upskill workforce.

& Analytics: Generate corporate value by
3 Datacontinuously analyzing consumer data andextracting actionable insights.

& integrated Operating Model:
6 Organization
Collaboration and integrated efforts to build
strong DX foundations with our partners (HR,IT, FOCUS, external)

Grow customer value by personalized
consumer experiences at scale.
Optimize customer relationships andomnichannel marketing effectiveness.
Customer Centric, Data Driven.

Personalized comms
including SMS, WeChat,
Line, Email etc

Information about theconsumer is collected

DATA HUB

ENGAGEMENTPLATFORMSANALYTICS
TOOLSInsights to consumer
demographics, and behavior

SUPPORT SERVICES
Extended team to assist with governance, education, planning & activation
GOVERNANCE – Custodianship

INTEGRITY – Actionable & Valuable

ORGANIZATION – Data Driven

ACTIONABILITY - Value Creation

Scalable Infrastructure
Personalized Consumer Experiences at Scale•

Select Targeted Audienceleveraging mix and match of 200
available attributes•

Omni-channel communications•

Curated experience
according to customer lifecycle,
customer needs

Note: All trademarks, logos and brand names are the property of their respective owners and use is for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

Scalable Infrastructure
for Commerce Digital Flagship Brand Digital Destination
DIGITAL COMMERCE ECOSYSTEM FOR GROWTH

Enabled By A Global Code Base With 7 Core Competencies
CONTENTANALYTICS
COMMERCEINTELLIGENCESERVICE
MARKETING
ENGAGEMENTCUSTOMERMANAGEMENTScalable Infrastructure
for Commerce Digital Flagship/Brand Digital Destination
Merchandising & Shopping
Experience

Personalization& CX

Packaged with various integrated
mar-tech tools
Referral Marketing
Ratings & Reviews
Digital Asset Management

Geo Store Locator
Personalization
Merchant Integration
Social Live Shopping
One to One Marketing
Skincare Regimen Experience
Virtual Try-on
Sampling
Bundle Shopping Experience
Order Replenishment

Upsell & Cross Sell Product
Recommendation Via AI
Testing and Analytics
Abandoned Cart

Sustainable
GrowthBusiness
Resilience

1st Party
Data

BEAUTY TECH LAB @ SHISEIDO
Enhancing the Consumer Experience
CAPABILITIES - SKIN SCIENCE & TECHNOLOGY

R + D Science SME

Data Science

Product Management & Strategy

Computer Vision

Machine and Deep Learning

Image Processing, 3D Rendering

Statistical Analysis

Natural Language Processing

User ExperienceBEAUTY TECH LAB @ SHISEIDO
Enhancing the Consumer Experience: ”FCA”
FACIAL ANALYZER (FCA)• Empower consumers - proprietary R&D

•
•
•
•
•
•

Proprietary R+D engine, BH custom
AI, Computer Vision
Microservices: Data, Identity, CRM
Built to scale: brands, markets
Security, ComplianceOmnichannel Service Expansion

Roll-Out in Store

China WeChat

Japan LINE

In Store Visualizer

Prestige, Premium Brands and Multi Markets

1st Party
Data✓ Consultant empowerment✓ 24/7 Service✓ Generates data

✓ Unlocks customer and market insights✓ Gateway to product discovery✓ Conversion and engagement driver

Metaverse Web3 Activations: Expansion of reach & engagement; testing andpiloting new experiences and engagement
•
•
•
•
•

Global Metaverse Steer Co established for efficiencies and speed
20+ virtual worlds & games
Multiple NFT projects, Loyalty pilots
Virtual influencers, Virtual goods sold
Artists leveraging Gen AI

Delivering Performance & Resultsby Unlocking the Power of Data Across the Enterprise Value Chain
OUR CONSUMER DATAAn Asset &Competitive Advantage

Consumer Data: an enterprise asset w/intrinsic value.
When unlocked, we gain valuable signals, intelligence &insights.

PERSONALIZED OMNICHANNELCUSTOMER EXPERIENCE

BUSINESS DECISIONS FOREFFICIENCIES & PROFITABILITY

R&D INNOVATIONS WITH
AI/ML

ENRICHED PARTNER ECOSYSTEMINTELLIGENCE
SIGNALS

INSIGHTSOUR ANALYTICS JOURNEY

WHERE IT ALL BEGAN

OUR ANALYTICS JOURNEY

ADVANCED ANALYTICS
Leveraging AI & ML into Regional Roadmaps

OUR ANALYTICS JOURNEY

ADVANCED ANALYTICS
Leveraging AI & ML into Regional Roadmaps

Descriptive To Prescriptive To Predictive
Full Spectrum of Analytics Services

1
EXECUTIVEDASHBOARDS2WEB
ANALYTICS & UX

3
CUSTOMERANALYTICS

4
SOCIAL & MEDIAANALYTICS

5
ENTERPRISEANALYTICSGLOBAL CRM KPIs
KEY PERFORMANCE INDICATORSFIRST PILLAR

CONSUMER SCALE& ENRICHMENTSECOND PILLAR

THIRD PILLAR

FOURTH PILLARCUSTOMERHEALTH

BUSINESSRELEVANCECUSTOMER
LIFECYLEDATA DEMOCRATIZATIONCUSTOMER KPIs

CAMPAIGN KPIs

27

DATA DEMOCRATIZATIONCLTV DASHBOARD

COHORT-LEVEL HISTORIC CLTV BALANCE SCORECARDCOHORT-LEVEL HISTORIC CLTV BALANCE SCORECARDTOP SHEETS (TAB 1)

TIME

OBJECTIVE
Primary KPIs

Review three primary LTV KPI trends

Q3 FY22

MARKETREGION▽

Flexible time range

EMEA
All

▽

BRAND
▽

UK
All

TOP SHEETS (TAB 2)

TIME

OBJECTIVE

NARS
All

▽

Primary KPIs

Review any relation between CLTV and other key business metrics (e.g., Revenue, Customer)

PRIMARY
KPIs▲6%

No decimals;variance: color code

YoY

QoQ

70%

▲3%

▲6%

$310

$312

List 6 quarter actuals (incl. present)

$315

$318

$320

Y-AXIS: USD

55%
$30

Q3 FY22

YoY

QoQ

$320

▲8%

▲6%

All Customers

$310
58%

$312
59%

$315
62%

$318
64%

NARS
All

▽

$300

High CLTV: Top 20% of the customer base; it is different depending on each geo-brand, but they represent roughly 60-70% of the revenue (see slide 15)

YoY

QoQ

▲3%

▲4%

All Customers

$310

$312

$315

$318

$320

Q3 FY22

YoY

QoQ

52,325▲2%▲6%48,000$310

48,200$312

49,000$315

No decimals

No decimals

Line chart

$320
70%

All Customers:
Customer Database (#)

Q3 FY22
All Customers $43,212

No decimals;variance: color code

In USD; No decimals

Y-AXIS: Customer Revenue Cont. to Total (%)

Y-AXIS: USD

Q3 FY22
No decimals

Line chart$300

High CLTV

BRAND▽

Y-AXIS: Customer Revenue Cont. to Total (%)

QoQ

▲8%

UK
All

Mouse hover-over: display definition

All Customers:
Revenue ($)

Y-AXIS: Database Size to Total (%)

YoY

$320

In USD; No decimals

Mouse hover-over: display definition

Mouse hover-over: display definition

All Customers:
Average CLTV ($)

High CLTV Customers:
Contribution to Sales (%)

Q3 FY22
All Customers

▽

EMEA
All

TREND
MONITOR

Mouse hover-over: display definition

Mouse hover-over: display definition▽

Enable roll-up views considering all combinations; for instance:• Region x Market x Brand: EMEA x UK x NARS
• Region x Brand: EMEA Roll-up x NARS
• Region: EMEA Roll-up x All Brands Roll-up• Market: UK x All Brands Roll-up• Brand: All Regions Roll-up x NARS
• Global: All Regions Roll-up x All Brands Roll-up

Enable roll-up views considering all combinations; for instance:• Region x Market x Brand: EMEA x UK x NARS
• Region x Brand: EMEA Roll-up x NARS
• Region: EMEA Roll-up x All Brands Roll-up• Market: UK x All Brands Roll-up• Brand: All Regions Roll-up x NARS
• Global: All Regions Roll-up x All Brands Roll-up

All Customers:
Average CLTV ($)

MARKETREGION

Q3 FY22

Flexible time range$200,000$300,000$320,000$330,000$360,000$400,000

46,000$30

51,000$318

52,352$320

List 6 quarter actuals (incl. present)

COHORT-LEVEL HISTORIC CLTV BALANCE SCORECARDTOP SHEETS (TAB 3)

TIME

OBJECTIVE

Q3 FY22

Review the migration trend between each LTV group (High, Medium, Low)

MARKETREGION
▽

▽

EMEA
All

Flexible time range

BRAND
▽

UK
All

▽

NARS
All

TIER
MIGRATION

Enable roll-up views considering all combinations; for instance:• Region x Market x Brand: EMEA x UK x NARS
• Region x Brand: EMEA Roll-up x NARS
• Region: EMEA Roll-up x All Brands Roll-up• Market: UK x All Brands Roll-up• Brand: All Regions Roll-up x NARS
• Global: All Regions Roll-up x All Brands Roll-up

CSV downloadable (one-click includes one CSV file with all charts)
Mouse hover-over: display definition

HIGH

HIGH

M EDIUM
M EDIUM
LOW

LOW

No decimals

Formatting: Same as
CLTV Balance Scorecard Top Sheet

No decimals
SCALE

STATS

MIGRATION
YoY

METRICS

STATS

YoY

SUB-TOTAL(#)

SUB-TOTAL
(%)

VAR.
(%)

UPGRADED
or NEW(#)

UPGRADED
or NEW(% to Total)

RETAINEDRETAINEDDOWNGRADEDDOWNGRADED(#)(% to Total)(#)(% to Total)

HIGH(DECILE 1-2)

A

X%

▲%

0,000

X1%

0,000

Y1%

MED
(DECILE 3-5)

B

Y%

▲%

0,000

X2%

0,000

Y2%

0,000

Z1%

X3%

0,000

Y3%

0,000

Z2%

LOW
(DECILE 6-10)

C

Z%

▲%

0,000

TOTAL

X,XXX

100%

▲%

0,000

0,000

e.g., X2 + Y2 + Z1 = 100%

0,000

STATS

YoY

STATS

YoY

LTV
($)

LTV VAR.
(%)

REVENUE($)

REV. VAR.
(%)

$

▲%

$

▲%

$

▲%

$

▲%

$

▲%

$

▲%

▲%

$

▲%

$

6 ▲%

UPGRADED
or NEW(%)

RETAINEDDOWNGRADED

(%)

(%)

▲%

▲%

▲%

▲%

▼%

▲%

▲%

▲%

▲%

▲%

High CLTV: Top 20% of the customer base; it is different depending on each geo-brand, but they represent roughly 60-70% of the revenue (see slide 15)

AUDIENCE
PULL

OBJECTIVES
1

MAXIMIZE POTENTIAL HIGH-VALUE LEADS GENERATION

2

INCREASE MARKETING ROI

3

RETAIN HIGH-VALUE & VIP CUSTOMERS4NURTURE FUTURE HIGH-VALUE CUSTOMERS5PREVENT ACTIVE CUSTOMERS FROM DISENGAGING

People Transformation: Build Capabilities through Knowledge, Literacy & Skills

MISSION
Prepare our people to successfully
drive Digital Transformation by
Nurturing a digital-first culture &mindset through Upknowledge &Upskill Programs.

PROGRAMS
123KNOWLEDGEACQUISITION
Webinars Symposiums
Summits
Expeditions

LITERACY
CERTFICATION
Digital Literacy
Tech Literacy

UPSKILLING
Masterclasses
Workshops
Advanced Certs

ACTIVITIESWebinars
Workshops
Masterclasses
Expeditions
Summits

People Transformation:
Fostering Community & Culture for New Ways of Working
2022 Canada Future Festival Expedition

5th Global Digital Leadership Summit

THE IDEAS EXCHANGE

2023 Digital Day - APAC
Symposiums & Webinars

2023 Digital Agile Leadership Workshop - TR

3rd EMEA Digital Summit

2022 A Unified, Data-Driven Digital Platform
Powered for Growth
AI

47M

125+

MARKETING
& CRM

33%

83%

ECOMMERCERATIO

DIGITAL MEDIA
RATIO

95

3X

4B*

CONNECTINSTANCES

CONSUMERPROFILESDIGITALFLAGSHIPSBEAUTYTECHDIGITALCOMMERCE
MEDIA
ANALYTICS

DIGITAL
PRACTICESSERVICING
THE CONSUMERJOURNEYDATA &ANALYTICS

enrolled
CHANGE&EDUCATION*Program to date since 2017

SOCIALMEDIA

CONTENT

8,600

PERSONALIZED
COMMS

✓
✓

DTO HQ Integration
Digital Talent/SMEs

Digital Ecosystem & Network

Sales & Distribution D2C,
Retailer.com & Pure Players
Social Commerce
New Business Innovation

Consumer
Engagement
Increased CLTV
New Customers

Consumer
Data Generation
Insights to Action
Data Science
AI COE

Teams & Network
Knowledge & Skills  Excellence in Execution

Great Consumer Experiences

Great Consumer Relationships

Digital & Data Driven Engagement
Creates a Virtuous Cycle of Value Creation for the Shiseido GroupTHANK YOU
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