In 1916, Shiseido made cosmetics independent of the pharmacy with the soda fountain, and established the Cosmetics Division and a store selling cosmetics in a separate location on the block next to the existing building. Facing a large avenue, the three-story brick building on the corner had a store on the first floor, cosmetics production on the second, and the Design Department and the testing room on the third.

The main work of the Design Department was the making of posters, newspaper and magazine advertisements, package designs and store layouts. The department was staffed by art college students and young artists who drew flowing elegant lines based on an art nouveau style while referring to Parisian fashion magazines, thus producing a modern, refined style later called the “Shiseido Style.” The placement of this sort of advertising staff right after Shiseido embarked on its cosmetics business was due solely to President Shinzo Fukuhara's recognition of design's importance for the company.

The testing room was in charge of developing new products and improving ready-made goods. It later became a laboratory, was further expanded on the scale of a chemical research institute, and has developed into what is now the Shiseido Research Center. At the present time, cosmetics are handled like chemicals and quality is strictly assured under the progressive company ideal of respect for product excellence.