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Shiseido Co Ltd (4911 JP)

Consumer Discretionary

LightStream Research

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