Shiseido to launch DQ brand in Chinese drugstores

By Katie Nichol

- Last updated on GMT

Related tags Marketing Skin Shiseido

Japanese cosmetics company, Shiseido, will launch its new DQ (Dermal Quotient) skincare brand in China from March 2010.

The DQ brand is aimed at women concerned with chronic skin troubles as well as those who are unsatisfied with the effects of conventional cosmetic products.

The skincare range contains Tranexamic acid, an active ingredient for rough skin which is designed to work at the origin of skin care troubles to give a feeling of effective product penetration, according to Shiseido.

The drugstore channel

The brand will be sold via drugstores, a sales channel that has been designated as the third pillar of the company’s business expansion in China, where its cosmetics products are currently sold through department stores and cosmetic specialty stores.

According to Shiseido, drugstores in urban areas that began handling imported cosmetics from the end of the 1990’s started to emerge as the new sales channel in the cosmetics market. Although drugstores currently comprise roughly 10 per cent of the market, the channel is achieving double-digit growth and is expected to grow further in the future.

By selling the new skincare range through drugstores, Shiseido is specifically targeting women who have high expectations in terms of finding a scientific solution to skin problems, the company said.

The DQ Control Line for daily skincare needs and Skin Trouble Care line comprise 25 products including moisturizers, cleansers and skin lightening lotions that have a retail price of RMB160-360 ($23-53) per item.

Chinese skincare market

The premium skincare market in China has witnessed strong growth in recent years as the booming economy continues to fuel consumer spend.

According to market research provider NPD Group, the belief amongst Chinese women that there is a direct correlation between the price and reputation of a brand and the effectiveness of a product is contributing to increased sales of premium skincare brands.

The latest figures from Euromonitor show that the market for premium skincare in China grew by 164.6 percent between 2003 and 2008 to reach a value of just over $1.5 bn.

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