CE Strategy in the Cosmetics Industry

This study examines the current state of circular economy (CE) strategies in Japanese firms, with a specific focus on the cosmetics sector through Shiseido’s case. Transitioning from a linear to a circular economic model is critical for addressing issues like resource depletion and environmental degradation. Shiseido’s adoption of the “Shiseido 5Rs” framework—Reduce, Reuse, Recycle, Replace, and Respect—embodies a comprehensive approach to sustainability that integrates environmental, social, and ethical dimensions. Shiseido emphasizes technological innovation and cross-industry collaborations, partnering with companies like Sekisui Chemical and Sumitomo Chemical to enhance resource efficiency and waste management. Despite these advancements, significant challenges remain, including high initial investment costs and the necessity for collaborative stakeholder engagement to fully implement the 9R strategies. To navigate these hurdles, firms must prioritize educational initiatives that cultivate a culture of sustainability among consumers. This research underscores that incorporating CE principles not only enhances competitive advantage but also contributes to a sustainable future. Shiseido serves as a benchmark for other companies in the industry, demonstrating that a successful transition to a circular economy relies on collaboration, innovation, and a steadfast commitment to sustainability. In essence, Shiseido’s holistic approach to sustainability—particularly through the “Respect” principle within the 5Rs framework—extends beyond environmental initiatives to encompass a broader responsibility toward consumers, society, and the planet. This commitment positions Shiseido as a leader in the cosmetics industry, setting a high standard for corporate responsibility and sustainable practices that resonate with the values of today’s consumers.