Shiseido's 30-Year History of Business in China
Shiseido's 30-Year History of Business in China
Shiseido's 30-Year History of Business in China
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Shiseido Develops New <strong>Bus<strong>in</strong>ess</strong>es <strong>in</strong> Ch<strong>in</strong>a<br />
Shiseido is develop<strong>in</strong>g new bus<strong>in</strong>esses <strong>in</strong> Ch<strong>in</strong>a, which is positioned to serve as a ma<strong>in</strong> growth eng<strong>in</strong>e under its<br />
current Three-<strong>Year</strong> Plan (April 2011 - March 2014) that began this fiscal year. In l<strong>in</strong>e with four growth strategies<br />
announced—Global Mega-Brand, Asian Breakthrough, New Frontier and Customer-First (see page 3 for further<br />
details)—Shiseido is work<strong>in</strong>g to facilitate new growth and achieve susta<strong>in</strong>ed double-digit growth <strong>in</strong> sales, exceed<strong>in</strong>g<br />
the rate at which the Ch<strong>in</strong>ese cosmetics market is grow<strong>in</strong>g by strengthen<strong>in</strong>g the foundations <strong>of</strong> its bus<strong>in</strong>esses through<br />
such means as launch<strong>in</strong>g a new e-commerce service.<br />
The <strong>in</strong>formation <strong>in</strong>cluded <strong>in</strong> this news release was orig<strong>in</strong>ally announced at the Shiseido Ch<strong>in</strong>a <strong>Bus<strong>in</strong>ess</strong> Strategy<br />
Conference held <strong>in</strong> Shanghai at 3:<strong>30</strong> pm (4:<strong>30</strong> JST) on September 14.<br />
Introduction <strong>of</strong> E-Commerce Initiatives<br />
As the number <strong>of</strong> Internet users cont<strong>in</strong>ues to grow worldwide, Shiseido will commence full-fledged efforts to<br />
<strong>in</strong>troduce e-commerce <strong>in</strong>itiatives for the Ch<strong>in</strong>ese market to realize its New Frontier Strategy. The aim is to expand<br />
po<strong>in</strong>ts <strong>of</strong> contact with new customers <strong>in</strong> addition to exist<strong>in</strong>g sales channels <strong>in</strong> Ch<strong>in</strong>a, which surpassed the United<br />
States as the country with the most Internet users <strong>in</strong> 2010. On September 15, Shiseido will launch a website for<br />
PURE&MILD Soi, a new series <strong>of</strong> products developed specifically for the Ch<strong>in</strong>ese mail-order market under its<br />
PURE&MILD brand, which is currently <strong>of</strong>fered primarily at supermarkets, hypermarkets and cosmetics specialty<br />
stores. The new l<strong>in</strong>e <strong>of</strong> products (14 sk<strong>in</strong>care products, 14 items, price range: RMB90 - RMB2<strong>30</strong>), with<br />
environment-friendly features that <strong>in</strong>clude packag<strong>in</strong>g (cases) made from bagasse paper*, targets young, post-80s<br />
consumers who prefer natural products and lead consumption <strong>in</strong> Ch<strong>in</strong>a.<br />
The mail-order bus<strong>in</strong>ess goes beyond a shopp<strong>in</strong>g website, <strong>in</strong>corporat<strong>in</strong>g a new call center that will field customer<br />
<strong>in</strong>quiries, and an onl<strong>in</strong>e counsel<strong>in</strong>g service that will allow pr<strong>of</strong>essionally tra<strong>in</strong>ed call center staff to propose products<br />
and beauty techniques that are optimized for the sk<strong>in</strong> types and needs <strong>of</strong> <strong>in</strong>dividual customers. By accumulat<strong>in</strong>g<br />
<strong>in</strong>formation <strong>in</strong> a customer database for later analysis, Shiseido seeks to boost customer satisfaction.<br />
*Bagasse paper: Non-wood paper made from fiber rema<strong>in</strong><strong>in</strong>g after sugarcane is crushed <strong>in</strong> the production <strong>of</strong> sugar.<br />
Develop<strong>in</strong>g the Bare Escentuals Brand <strong>in</strong> Hong Kong<br />
The Global Mega-Brand Strategy is one <strong>of</strong> four growth strategies that seek to transform Shiseido <strong>in</strong>to a Global<br />
Multiple Brands Company. It aims to have <strong>in</strong>dividual brands generat<strong>in</strong>g from ¥50 billion to ¥100 billion <strong>in</strong> sales by<br />
focus<strong>in</strong>g on develop<strong>in</strong>g three brands <strong>in</strong> the prestige category: global brand SHISEIDO, Clé de Peau Beauté and<br />
bareM<strong>in</strong>erals from Bare Escentuals, Inc.<br />
bareM<strong>in</strong>erals products will be sold through a Shiseido sales company (Shiseido Hong Kong Ltd.) for the first time<br />
as a synergy effect result<strong>in</strong>g from Shiseido’s acquisition <strong>of</strong> the company <strong>in</strong> March 2010. Shiseido will hold an event<br />
to announce the products <strong>in</strong> Hong Kong on September 28 prior to launch at two department stores <strong>in</strong> the territory <strong>in</strong><br />
October.