Shiseido announced that its products, including its luxury global brand Shiseido makeup and skin care lines, will be marketed in Georgia through Prestige Ltd., distributor with experience selling luxury cosmetics in Georgia and in marketing in additional European markets. With this latest endeavor, Shiseido overseas beauty sales will encompass 78 countries and regions (including Japan), 44 of which are in Europe. According to the company, this marks the first entry of a Japanese cosmetics brand into the Georgian market.
Georgia is the fifth Newly Independent States (NIS)* country in which Shiseido beauty products are sold. Market efforts commenced in Russia in 1998, Ukraine and Kazakhstan in 2002, and Azerbaijan in 2009.
Prestige manages approximately 20 affiliated beauty retail stores. Sales of Shiseido products will commence at seven of these affiliated stores, which specialize in counseling sales for luxury skin care products with the aim of expanding a regular customer base by meticulously responding to customer needs.
Shiseido is currently promoting its Three-Year Plan, which was initiated in 2008 in seeking to become “a global player representing Asia with its origins in Japan.” Among its overseas business, Shiseido is focusing on “expansion of operations in new markets” and “strengthening of operating bases in existing markets” as key drivers. Shiseido is also actively pursuing inroads into new markets in 2010, including Mongolia in May and three Balkan Peninsula countries, beginning with Albania in July followed by Kosovo and Macedonia, respectively, in August and September.
Shiseido's Background on Georgia; Impetus to Launch in the Region
Georgia is geographically situated at the juncture between Europe and southwest Asia. It is bounded by Russia via the Caucasus mountain range running along its northern border, the eastern coast of the Black Sea to the west and the countries of Turkey, Armenia and Azerbaijan to the south. In ancient times, Georgia was an important transit point for the many people and goods along the Silk Road. At the present day, Georgia is playing a central role as a crucial conduit for crude oil and natural gas pipelines. At the beginning of 2010, signs become apparent that Georgia’s real economic growth rate was once again rising, with the cosmetics market in particular showing a 15% increase versus the previous year. Together with the stabilization of its economic foundation, the demand for prestige cosmetic products is expected to expand in the future. In view of this outlook, Shiseido thus made the decision to commence sales in Georgia.
*Newly Independent States (NIS): Newly independent states of the former Soviet Union comprise a total of 12 countries, including Russia, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikstan, Turkmenistan, Ukraine and Uzbekistan.