“If there is not only demand for prestige cosmetics among people, but also the right distribution and retail mechanism (or distribution partner-agents) for prestige cosmetics sales, Shiseido will inroad into new markets,” a Shiseido spokesperson told CosmeticsDesign-Europe.com.
Shiseido is currently present in 83 countries and regions, and has recently commenced sales of the Shiseido brand in the Republic of Panama through the Columbian distributor Wisa Group. In Panama, increased demand for prestige cosmetics products is anticipated due to stable economic growth since 2004, according to Shiseido.
“What we have to do first is enhance our presence in these markets, and find more business opportunities,” the spokesperson said, adding that in general, its competitors are considered to be international companies such as L’Oreal and Estee Lauder rather than local brands.
In markets into which it has entered over the past few years, such as Georgia and Mongolia, Shiseido has established a selective retail strategy, choosing to sell the Shiseido cosmetics brand in a limited number of stores that can provide a tailored customer service experience using beauty consultants.
Shiseido targeting net sales of 1 trillion yen for FY 2017
Despite growth speed slowing more than expected as a result of the global financial crisis, Shiseido hopes to achieve net sales of over 1 trillion yen (€8.8bn, $12.2bn) by the end of 2017, with 50 per cent of this expected to come from overseas markets, the spokesperson said.
After the purchase of Bare Escentual’s in 2010, acquisitions remain on the agenda for Shiseido, although no concrete candidates have been identified.
“If we look for the next partner for a merger, acquisition or collaboration, it could be a company or brand with which we can generate synergies and produce innovated values,” said the spokesperson, adding that the product category, whether it be color cosmetics or skin care for example, is not of large importance.
Shiseido is set to announce its next three year plan (2011-2013) on 1 April 2011, with the recently appointed President & CEO Hisayuki Suekawa presenting the company’s new development strategy.