The threats of substitutes in the cosmetics and personal care market tend to be very high due to the fact that consistent research and development and innovation are one of the major characteristic of the cosmetics and personal care industry. Different players in the market including Shiseido is consistently innovating their offerings and introducing a range of new products that not only build reorder inventory for such organization, but also enable such organization to initiate a new product lifecycle for their new offerings (Jenster, 2003). Not only the industry rivals are making modification in the basic formulation of their offerings but also new players in the market are emerging who have improved formulation and may pose strong threats to Shiseido. For example, different herbal products from Germany and China have been in market that has improved formulation. In addition, the scientific innovation in the industry is also underway and different therapies in this regard may emerge as substitute for different brands currently marketed by Shiseido and other market player in the market (DataMonitor, 2010).