Shiseido

Japanese cosmetics giant with over 150 years of history, facing classic power law challenge of extreme SKU proliferation. Analysis revealed approximately 20% of products generated roughly 80% of sales while remaining 80% consumed disproportionate resources.

Launched aggressive WIN 2023 transformation reducing 2,688 SKUs in 2018, another 1,000 in 2019, and announced plans for 4,500 more reductions. Results included inventory efficiency improvement (DSI from 269 to 218 days) and operating profit increase of 177.9% YoY to ¥41.6 billion in 2021. Demonstrates power law portfolio rationalization in consumer goods.