Consumer Discretionary
Shiseido acquisition of online US Skincare & Cosmetics brand Drunk Elephant in 2019 for a valuation of $845m was perceived positively at the time. Rather than emulating Drunk Elephant like digital marketing to the company’s other brands, Shiseido has been trying to incorporate all its brands into a hybrid marketing strategy. This seems to have killed Drunk Elephant’s appeal to its customers and means a massive $845m write-off over the next few years is coming. LightStream Research fear that this acquisition could end up being yet another failure for Japanese companies in cross-border acquisitions.
Edition: 145
- 30 September, 2022