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Shiseido Outlines Growth Plan for China

Posted: September 23, 2011

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In the initiative for China, bareMinerals products will be sold through a Shiseido sales company (Shiseido Hong Kong Ltd.) for the first time as a synergy effect resulting from Shiseido’s acquisition of the company in March 2010. Shiseido will hold an event to announce the products in Hong Kong on September 28 prior to launch at two department stores in the territory in October.

Introducing the Tsubaki Global Mega-brand in China

In the masstige category of its Global Mega-Brand Strategy, Shiseido is currently offering two brands: Za, a skin care and makeup brand, and Senka, a skin care brand. Shiseido also will introduce the Tsubaki hair care brand in December 2011 in an effort to expand a new product category in the masstige domain. Products currently being sold in Japan under the brand will be locally adapted to better meet the needs of Chinese women and made available at about 10,000 hypermarkets and drugstores. Shiseido will build a fourth production facility at Shanghai Zotos Citic Cosmetics Co., Ltd. to boost production of these TSUBAKI products.

Trialing a Collagen Drink

With the Chinese health food market experiencing dramatic growth, Shiseido is working toward the release of a collagen drink in the health care business as a new business domain. Recognizing that there is also high demand for such products in Japan, Shiseido is planning to conduct a trial with a beauty beverage formulated with collagen under its Pure&Mild brand for individuals seeking beautiful and resilient skin. The move is part of Shiseido’s Asian Breakthrough Strategy, which seeks to enhance its presence and achieve future growth. Of the 8,000 stores that carry Pure&Mild brand products, the initiative will be implemented at 1,600 high-end shops able to offer customers counseling.

Shiseido will boost the presence of new and existing brands in China by prioritizing investment in these new initiatives. In the department store channel, Shiseido will increase the competitive edge and prestige of global brand Shiseido, Clé de Peau Beauté and Aupres. In the cosmetics specialty store channel, which includes more than 5,000 retailers, Shiseido will seek to increase same-store sales by promoting the Urara brand and introducing d’icilà, a prestige brand designed for cosmetics specialty stores in Japan, at stores with leading sales figures.