Founded in 1872, Shiseido is a Japanese multinational personal care company producing cosmetics, fragrances, skincare and hair care products. Shiseido Cosmetics Vietnam is a subsidiary of Shiseido Group running more than sixty shops across Vietnam.
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 solutionfor 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 besimple to implementand supportingfast rollout of new stores. Finally, the company needed a system that would provide them with thewhole 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 tocontrol all business processes, including purchasing, warehouse, retail CRM, store sales, distribution, franchise and financial process. The system is alsoeasy to learn,and simple to customize. Shiseido was able to develop unique requirements and add-ons tocomply 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 nowcollect all customer skincare data and combine it with transaction historyto offer the best-fitting product, and keep customer satisfaction high. The marketing team also getsreal-time insightsabout customers. This knowledge enables them to make morerelevant, timely, personalized and contextual offers. LS Nav has enabled Shiseido to offerloyalty programs and electronic voucherswhich 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.
NaviWorld Vietnam helped Shiseido design an inventory management process in LS Nav that provides the company with anintelligent 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 createsales campaignsthat improve customer experience. The merchandising team can keep track of inventory andtake 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 inventoryhas given the company deeper insights and granular improvements, which led to broaderefficiency and cost savings.
LS Nav is an end-to-end solution that helps Shiseido easily control all owned store and franchisees. Since implementing the system, we have also streamlined our business operations nationwide.