We are glad you are enjoying Advertising Age. In Shiseido s mid-term management plan covering the 3 years between andthe company continued to strive toward its goal of being a global player representing Asia with its origins in Japan.
Lightening products are not the same as whitening products that also have become popular throughout Asia. Compared with Europe and the US, what are the merits and demerits of Shiseido expanding its cosmetics business in China?
How are customers segmented and how does Shiseido view its target customers? This combination became a strong advantage for Shiseido right from its early days. Published on September 01, From Japan s perspective, is the gap between the Chinese and western markets, as described by the CAGE framework, larger than that between the cosmetics markets in China and Japan?
The company s businesses cover manufacturing and sale of cosmetics, cosmetics tools, toiletries, hair and beauty products, beauty foods, and pharmaceuticals, as well as research and other services for each of the businesses Table Shiseido marketing in china In MayShiseido became the cosmetics industry sponsor of the Shanghai World Expo, the first Japanese company to be a sponsor for that exposition.
Transcription 1 Shiseido Marketing in China Introduction Shiseido is a leading Japanese cosmetics manufacturer that has been in operation for more than a century.
Japan s cosmetics market in was approximately JPY 1. Shiseido promoted the strengths of its products through the Internet by having product ambassadors with clear, light skin record their opinions after using these products on blogs.
Shiseido has realized from quite early on, the importance of offering a highly differentiated experience to customers and also to excite them constantly through innovative and high quality products.
In its medium-term management program, Shiseido in China is proposing every year a new strategy, the company has set the goal of being one of the most famous company in its industry, to be seen as the biggest actor in the Asian scene.
Leveraging its unique heritage and the positive effects of its country of origin, Shiseido has been able to penetrate markets around the world by offering high quality, relevant and exciting products. The company focuses primarily on cosmetics, hair coloring, skincare, and perfumes; however, it is also active in the fields of dermatology and pharmaceuticals.
However, this was a completely new arena for Shiseido at the time.
Creation of Shiseido International Co. Euromonitor International presence in China by acquiring the mass-market Mininurse brand, which hadsales outlets for its cosmetics in bulk retailers and other channels.
For example, Amore Pacific, which is the top-selling brand in South Korea, has not been able to make in-roads into the Chinese market, because of its low brand awareness in both the U. Shiseido needs to carve its way forward Since its inception, Shiseido has realized the importance of offering a highly differentiated experience to customers, to excite them constantly through innovative and high quality products and to segment its customers to offer them a brand experience targeted to each of these segments.
There are several reasons for the enduring success that Shiseido has enjoyed since its inception a century ago. Shiseido also used the consumption habits of the 80s generation by aggressively running promotions, particularly through word-of-mouth marketing. E-commerce initiatives With the number of Internet users, which continues to grow worldwide, Shiseido will deploy its efforts to introduce full-fledged e-commerce initiatives for the Chinese market, to achieve its new frontier Strategy.
Headquarters The Ginza Co. At the time, importing of cosmetics was banned in Taiwan; therefore, Shiseido began local production. Shiseido also plans to create other products in China to reduce its stocks and enhance its brand ambassadors in the country.
The camellia flower trademark used by Shiseido for more than years was designed by Shinzo himself. Shiseido has used acquisitions as a main channel to gain foothold in the crucial cosmetics markets of Europe and United States.
Shiseido acquired Bare Escentuals, a natural cosmetics manufacturer in the US, to rally its US business, and is expanding globally with Bare Escentuals Bare Mineral as a global strategic brand. As the cosmetics manufacturers selected by the Shanghai World Expo Coordination Bureau, Shiseido provided cosmetics, perfumes, and sunscreen to event personnel as well as instructions on makeup application Marketing Strategy in China Distribution channels for cosmetics can be classified into three groups: However, the rapid growth does not necessarily mean huge profits for Shiseido.
These acquisitions gave Shiseido an opportunity to build on something strong already in those markets.
Inbold structural reforms, such as consolidation and elimination of US subsidiaries, reduced the losses. Sales in China, in particular, are of high priority because it is an enormous market with high growth expectation.Shiseido is a leading Japanese cosmetics manufacturer that has been in operation for more than a century.
With growth in domestic and international markets, specially those of emerging nations such as China, international development within the cosmetics industry is growing in importance.
Shiseido has followed a strategy which is not so common for Asian brands expanding beyond the region. Shiseido has used acquisitions as a main channel to gain foothold in the crucial cosmetics markets of Europe and United States.
Case- Shiseido: Channeling Cosmetics in China 1. Marketing and distribution channels for cosmetics products performed mainly transactional and logistical function. Distribution channels such as the voluntary specialty chain stores perform transactional function when they buy these cosmetic products from the manufacturer and sell them in their individual stores.
In contrast, Shiseido is well known and respected in all of these markets. Maybelline was the favored color cosmetics brand among our panelists, which is not surprising as L'Oreal Group has aggressively focused resources on all elements of the marketing mix in China.
Today, Shiseido, still has a great success in China market by focusing on local brands such as Aupres brand. Domestically, Shiseido does not meet the growing demand for cosmetic products at lower prices, and, therefore, its revenue continues to drop. Shiseido entered the Chinese market at the behest of the Beijing government and expanded its market by modifying its marketing strategy in response to changes in the marketplace.
Shiseido’s first success in China came from the AUPRES brand, exclusively developed for that market.Download