Shiseido launches Tsubaki hair care line in Russian market
The line comprises eight products and 12 different items and will be distributed through the company’s wholly owned subsidiary Shiseido (Rus) through established retail distribution channels.
The dedicated retailer to stock the line will be Russia’s largest prestige cosmetic specialty chain, L’Etoile, which will see the line available in 600 stores throughout the country, making it the first time that the Tsubaki brand is available in Europe.
First time Tsubaki is available outside of Asia
The hair care brand is now sold in eight countries and regions, including the domestic Japan market, with distribution concentrated in Asia, namely in China and Hong Kong, Taiwan, South Korea, Thailand, Singapore and Malaysia.
Shiseido says that the this initiative is its first foray into the hair care segment in Russia and will build on its established presence in the cosmetics category through expanded points of contact with customers.
The move forms part of Shiseido’s Three Year Plan, which runs from fiscal year 2011 and 2013, aiming to make Shiseido a far more international name, beyond its mainstay Japan market.
Turning to emerging market as Japan economies slows
The company has been impacted by a shrinking economy in Japan, which has in turn seen Japanese consumers spending less and less on luxury or non-essential items in recent years.
The company’s international growth strategy has four major objectives, specifically ‘global mega-brand strategy’, ‘Asia breakthrough strategy’, ‘new frontier strategy’ and ‘customer-first strategy’.
Shiseido is focusing all its efforts in emerging markets under the new frontier strategy. The company says that after China, Russia is the most important market it wants to target to boost its growth and footprint worldwide.
Breaking into new emerging markets
Last year the company announced a long list of initiatives to increase its footprint in emerging markets through a selective retailing strategy that saw it break into a variety of new markets including the Baltic States and Azerbaijan, Mongolia, Panama and Moldova.
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 to date.