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Shiseido Outlines Growth Plan for China

Posted: September 23, 2011

Focusing on becoming a “global mega brand” with a focus on Asia and other emerging markets, Shiseido recently laid out plans for further expansion in the Chinese marketplace. According to the company, China is a standing example of how the group can proactively capitalize on its resources with the entry of Bare Escentuals into Asia and launch of e-commerce business in September.

Shiseido is developing new businesses in China, which is positioned to serve as a main growth engine under its current three-year plan, which encompasses April 2011–March 2014 and began this fiscal year. In line with four growth strategies announced—Global Mega-Brand, Asian Breakthrough, New Frontier and Customer-First —Shiseido is working to facilitate new growth and achieve sustained double-digit growth in sales, exceeding the rate at which the Chinese cosmetics market is growing by strengthening the foundations of its businesses through such means as launching a new e-commerce service.

Introduction of E-Commerce Initiatives

As the number of Internet users continues to grow worldwide, Shiseido will commence full-fledged efforts to introduce e-commerce initiatives for the Chinese market to realize its New Frontier Strategy. The aim is to expand points of contact with new customers in addition to existing sales channels in China, which surpassed the United States as the country with the most Internet users in 2010. On September 15, Shiseido will launch a website for Pure&Mild Soi, a new series of products developed specifically for the Chinese mail-order market under its Pure&Mild brand, which is currently offered primarily at supermarkets, hypermarkets and cosmetics specialty stores. The new line of products, with environment-friendly features that include packaging made from bagasse paper, targets young, post-80s consumers who prefer natural products and lead consumption in China.

The mail-order business goes beyond a shopping website, incorporating a new call center that will field customer inquiries, and an online counseling service that will allow professionally trained call center staff to propose products and beauty techniques that are optimized for the skin types and needs of individual customers. By accumulating information in a customer database for later analysis, Shiseido seeks to boost customer satisfaction.

Developing the Bare Escentuals Brand in Hong Kong

The Global Mega-Brand Strategy focuses, amongst other things, on developing three brands in the prestige category: global brand Shiseido, Clé de Peau Beauté and bareMinerals from Bare Escentuals, Inc.