By increasing raw material prices and squeezing margins, the weak yen is forcing Japanese companies to be more efficient, according to a report published by Investment Week.

Author Michael Lindsell, Portfolio Manager for the Lindsell Train Japanese Equity fund, argues that Shiseido’s recent drive to streamline its portfolio from 128 brands to just 15 core global brands accounting for 90 percent of sales, is a direct result of the weak yen raising input prices.

“This will allow Shiseido to target brands more accurately at specific consumer categories and eliminate the inefficient cannibalization and demographic overlap that has held back sales growth and brand recognition,” said Lindsell.