Shiseido Sells Zotos, Buys ‘AI’ Company

JAPAN: In October, Shiseido Company said it planned to sell its wholly-owned subsidiary Zotos International Inc. to Henkel, and a few weeks later, announced that it had acquired a tech company with leading expertise in artificial intelligence (AI).


No purchase price was disclosed for the Zotos deal. Shiseido purchased the hair care company in 1988 from Conair for $345 million.


In November, Shiseido Americas Corp. acquired Giaran, Inc., billed as award-winning, data-driven company with leading technology in A platforms. Terms of this transaction were not disclosed by either compnay.


Founded in 2016 as a spinoff from Northeastern University’s Synergetic Media Learning Laboratory by Raymond Fu, Giaran is powered by AI technology, such as computer vision, big data and augmented reality, and creates novel algorithms of deep learning, data mining and predictive modeling, according to Shiseido. Current technology within Giaran includes virtual makeup application, tutorials, color matching, personalized recommendations, makeup removal, face tracking and skin tone detection. The technology can be used across mobile, tablet and desktop as well as through a smart mirror powered by full HD augmented reality.


“Since our founding in 1872, Shiseido has been dedicated to remaining at the forefront of beauty,” said Masahiko Uotani, president and group CEO of Shiseido Company, Limited. “Through Giaran’s leading AI technology and our global innovation network, we’re continuing our journey of transforming how people discover and fall in love with products, creating deeply personal connections between our brands and consumers, and building a path to growth with consumers at the center.”


Giaran, which will remain based in Boston, will become part of Shiseido’s Makeup Center of Excellence, where it will work closely with Shiseido’s Global Digital Center of Excellence (in New York) and its global technology team in Tokyo. The company will operate in sync with and supplement MatchCo, a beauty personalization startup acquired by Shiseido Americas in early 2017, and the Americas Innovation Center, Shiseido’s research and development facility based in East Windsor, NJ.

Giaran will leverage its simulation technology across Shiseido’s portfolio and further expand Shiseido’s capabilities in beauty customization, all with the goal of driving consumer engagement and providing an unmatched consumer experience, according to the Japanese beauty giant.