CEO and Chair Masahiko Uotani Will Step Down with President and COO Kentaro Fujiwara Filling the Role
Major global beauty brand Shiseido Co. Ltd. has announced the retirement of its Chair and CEO Masahiko Uotani, effective by the year’s end. He will be replaced by Kentaro Fujiwara.
In a recent press release, the company confirmed, “Effective January 1, 2025, Masahiko Uotani will act as senior advisor for the Shiseido Group and, upon request by the management team, provide advice, support talent development, engage in external relations, etc.” Uotani’s director role at Shiseido will end following the ordinary general meeting of shareholders planned for the end of March 2025.
Shiseido has been implementing a CEO succession plan over the past five years. The mantle was passed to Fujiwara, the company’s current president and chief operating officer, who was named as the CEO candidate on November 10. 2022. It was then specified that Uotani would terminate his responsibilities in December 2024.
Having observed a smooth transition, Shiseido’s board of directors decided on the succession on July 30th, as per information from the company.
It’s notable that when Uotani took over as president and CEO at Shiseido in 2014, it was the first instance of an outsider being appointed to the role. His mandate was straightforward: transform the group into a genuinely global corporation. He brought to the table his years of experience at international companies, especially at Coca-Cola.
Uotani’s legacy includes strategically broadening Shiseido’s talent and key brand pool, reinvigorating the company’s global culture, and spurring growth in critical markets in the East and West.
Nonetheless, Uotani’s departure occurs in a time of extraordinary change for the beauty industry. Fujiwara will certainly face challenges, especially given that Japanese beauty brands are experiencing a shift in focus. These companies have previously benefited from their presence in China, but there is now a shift towards domestic Chinese brands, necessitating a new strategic approach.
Shiseido shares have taken a hit over the past year, declining by 24.3 percent, largely due to poor earnings in the Chinese market. In the first quarter of 2023, the company suffered a net loss of 3.29 billion Japanese yen, equivalent to $21.2 million, against a profit of 3.09 billion yen during Q1 of the previous year. However, it registered a 3.9 percent increase in quarterly sales, amounting to 249.5 billion yen.