Shiseido targets China's luxury professional hair care market
The company says its strategy will center on stepping up the distribution of its two core professional hair brands –Shiseido Professional and Joico – throughout the country.
Shiseido Professional is currently distributed by Shiseido in Japan, Asia and Oceania, while the Joico brand belongs to its wholly owned subsidiary Zotos International, and is marketed in the United States.
Eyeing China expansion
Shiseido says that the move is significant for its plans to expand into China as it marks the ‘second pillar of its strategic plan', supporting the established program to expand its cosmetics business there.
Under its 2008 – 2010 three year strategic plan, Shiseido is aiming to increase its business operations in China at an annual rate of 20 percent or more.
The focus on the professional hair care market will see the company initially targeting 700 leading luxury salons in Shanghai and Beijing, the country’s two leading cities, and consequently its most developed consumer markets.
Luxury professional hair care growing fast
The market for professional hair care in China was estimated at CNY90bn ($13.2bn) in 2007, while the luxury professional hair care market is currently estimated to be worth CNY50bn and is growing at an annual rate of 10 percent, according to Shiseido.
Growth in the luxury hair care salons market in China will be driven by initiatives such as the opening of the Shiseido Beauty Studios in Shanghai and Beijing, which provide training programs for professional hair stylists.
The Shiseido professional hair care products will be sold at salons in both cities, invariably by staff that have been trained on how to use the products according to individual requirements.