Shiseido will Put Forward Investment in Chinese Market for Good Performance

Shiseido is a famous Japanese cosmetic brand, which adheres to the philosophy of "100 years of craftsmanship, born to beauty". The name of Shiseido is derived from the Chinese I Ching, which refers to praise the virtues of the earth to nurture new life and create new values". That also reflects the brand image of Shiseido.

In 1897, Shiseido scientifically developed a lotion called EUDERMINE, based on a Western pharmacological prescription. Since then, Shiseido has been dedicated to research on skin beautification and developing many innovative products and beauty methods.

In the 40 years since Shiseido’s first steps in Beijing in 1981, China has become a major overseas market for Shiseido. While all other markets in the Shiseido Group were under pressure in 2020 due to the epidemic, Asia Pacific, especially China, was a standout performer. Against the backdrop of declining growth in the rest of the world, Shiseido China grew by 9.1%, the only positive growth region.

During promotional campaign on November 11st in 2020, Shiseido exceeded more than twice the sales of the previous year, and the e-commerce segment has accounted for more than 40% of the full year’s business in China, up more than 70% year-on-year.

On the fifth anniversary of Shiseido’s Tmall Super Brand Day (Tmall Super Brand Day: an activity conducted by Tmall in conjunction with its resident merchants, where participating merchants set their own “brand day” for the year), Shiseido made a stunning debut with its new Sakura Toning Essence, selling 25,000+ bottles as soon as it entered the market.The sales of this product exceeded the target by making impressive sales of $15 million on the same day. It even broke a new brand record by growing nearly two times over Super Brand Day in the last year. Not only that, 1 piece of Sakura Toning Essence is sold every 3 seconds in Shiseido’s Tmall flagship store.

As the hot product of Shiseido brand, Shiseido Ultimune Power Infusing Concentrate is affectionately known as “Hong Yao Zi” by Chinese consumers. Soon after its debut in 2014, “Hong Yao Zi” became Shiseido’s best-selling product, with one bottle sold every 13 seconds.

According to statistics, China’s S-class live streamer Li Jiaqi sold 5,000 orders of Shiseido Red Waist Seed in 3 minutes in Taobao Live on June 1st in 2019. During the promotional campaign on November 11st in 2019, the sales of this single product alone exceeded $928,800 million dollars in just 69 minutes, which reached over $15 million dollars in sales for the whole day last year, with an average of more than 160 pieces of the single product sold per second.

At present, the Chinese market has become a hot section in the eyes of major international cosmetic groups and cosmetic giants from all over the world have put more energy into it. In 2019, parent company of Shiseido, the Shiseido Group, set up a China Business Innovation Investment Office to develop new technologies. In March 2020, it set up its third China Research Institute in The Oriental Beauty Valley. Shiseido Global CEO Masahiko Ushitani has publicly stated that the Shiseido Group will innovate in China in this way and that it intends to focus its campaign in the Chinese market in the future. (Shanghai Oriental Beauty Valley: a “three-dimensional industrial system” with the entire Fengxian District of Shanghai as the carrier, with the “beauty and health” concept related to the product axis, service axis, industrial axis of three major coordinate systems.)

Talking about the characteristics of the Chinese market, Shiseido China CEO Kentaro Fujiwara said that the size of the Chinese market and consumers is the largest in the world and Chinese consumers are very willing to try new things. For the Shiseido Group, China is undoubtedly the market that generates the most innovation and can be said to be the fountainhead.

On August 5, 2021, Shiseido China announced a strategic cooperation framework agreement with Boyu Investment, a leading asset management company in China, and planned to launch Ziyue Fund, the first international beauty group-specific investment fund in mainland China, within the year after the completion of relevant regulatory filings. Shiseido China said that the Ziyue Fund will focus on emerging brands in China beauty and health sectors as well as investment opportunities in upstream and downstream related technology services companies.



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