Shiseido is a Japanese multinational personal care company producing cosmetics, fragrances, skincare and hair care products. Founded in 1872, it is one of the oldest cosmetics companies in the world. Shiseido Cosmetics Vietnam is a subsidiary of Shiseido Group, operating exclusively in the Vietnamese market. The company has one main distributor, Thien Thanh, and runs more than sixty shops nationwide.

Looking for an integrated solution

Knowing the importance of having a powerful system to support a retail store chain, Shiseido Vietnam started looking for a modern, integrated business management solution for their retail and distribution sectors. The chosen solution must not only meet the business requirements of Shiseido Vietnam, but also comply with the Vietnamese legal and business environment. The company also required that the system be simple to implement and supporting fast rollout of new stores. Finally, the company needed a system that would provide them with the whole picture of its inventory, including shipments, stock in transit, stock at outsource warehouse, inventory at own their stores and in franchise stores nationwide. After several rounds of evaluation on a number of large international retail ERP solutions, the management at Shiseido Vietnam selected LS Nav, based on Microsoft Dynamics NAV. The solution was implemented by NaviWorld Vietnam, a certified LS Retail partner.

LS Nav: an end-to-end solution to control a retail and distribution business

As a leading company in cosmetics retail and distribution, Shiseido believes that digital transformation is key to create value for customers and capture new opportunities for the organization. With LS Nav, Shiseido management has acquired a powerful system which enables them to control all business processes, including purchasing, warehouse, retail CRM, store sales, distribution, franchise and financial process. The system is also easy to learn, and simple to customize. Shiseido was able to develop unique requirements and add-ons to comply with local laws and regulations, including Vietnamese Accounting Standard (VAS), which was essential to the Vietnamese entity, and International Financial Reporting Standards (IFRS), relevant to the mother company in Japan.

Growth, profitability, and competitive advantage

With LS Nav, Shiseido can use the large volumes of data on their customers’ shopping behavior to take actions that increase revenue and customer loyalty. Beauty assistants in-store can now collect all customer skincare data and combine it with transaction history to offer the best-fitting product, and keep customer satisfaction high. The marketing team also gets real-time insights about customers. This knowledge enables them to make more relevant, timely, personalized and contextual offers. LS Nav has enabled Shiseido to offer loyalty programs and electronic vouchers which customers can use both in owned and franchisee stores. Customers buying Shiseido products from franchisee stores can earn membership points or get free vouchers, which they can then redeem at any store in the whole country.

Modernized supply chain system, optimized stock management

NaviWorld Vietnam helped Shiseido design an inventory management process in LS Nav that provides the company with an intelligent inventory system. The cosmetics company can now easily manage all quantities on order, in shipment from Japan to Vietnam, and at the warehouse and stores. The Shiseido sales team now has enough inventory information to create sales campaigns that improve customer experience. The merchandising team can keep track of inventory and take effective decisions. Finally, Shiseido has been able to increase its agility and efficiency with advanced inventory management tools, such as real-time reactions and automatic and continuous tracking of inventory. Global visibility of end-to-end inventory has given the company deeper insights and granular improvements, which led to broader efficiency and cost savings.