Beauty companies put money into technology M&A to fuel sales

In China, e-commerce already accounts for 25% of Shiseido

Shiseido Co, the Japanese firm that sells Laura Mercier cosmetics and Dolce & Gabbana fragrances, sold 1tril yen (RM36.25bil) worth of beauty products last year, mostly in traditional stores where customers can sample brands in person. 

That’s a problem for Masahiko Uotani, Shiseido’s chief executive officer. Consumers in their teens and twenties often prefer to shop online, beyond the reach of in-store salespeople. Uotani’s solution? To partner with – and even buy up – small startups in Silicon Valley and other tech hubs to gain expertise in artificial intelligence, augmented reality and other technologies.