Shiseido and A.S. Watson form three-year plan to meet demand for J-Beauty in Asia

Due to the surging customer demand for Japanese beauty products, it’s one of the fastest-growing product categories, with consistent double-digit growth year-on-year, said Malina Ngai, group chief operating officer of A.S. Watson Group.

Previously, Shiseido and A.S. Watson co-created the Urban Damage Care range under the sensitive skin care brand d programme.

The exclusive range was introduced into China in April via Watsons stores and exceeded its sales target by three times.

Co-creating success

The companies attributed the success of the range to Shiseido’s R&D strength as well as A.S. Watson’s in-depth customer insights and scalable distribution platforms.

“Riding on the successful launch of d program Urban Damage Care range, the co-creation of Shiseido and A.S. Watson, in countries and regions including China, Taiwan and Thailand, we are delighted to strengthen our partnership with Shiseido to enhance customer connectivity and drive Japanese beauty in our operating market,” ​said Dominic Lai, group managing director of A.S. Watson Group.

Both hope to replicate the success of d program’s Urban Damage Care range by co-creating exclusive products for two of its leading brands, Za and Senka.

A Shiseido spokeswoman told CosmeticsDesign-Asia that Za and Senka were the ideal choices as they were available across A.S. Watsons’s operating markets.

She added: “Senka has been performing well and we look to drive further growth through this partnership. We are also keen to proactively target Generation Z, and our partnership with Za will help achieve this.”​

Additionally, A.S. Watson has agreed to help Shiseido extend its reach in China as well as other potential markets in Asia such as Indonesia and the Philippines.

“Indonesia and the Philippines are markets with high growth potential. Both are seeing strong economic growth and have huge populations, and we are looking to meet the locals’ surging demand of Japanese-beauty products, especially the younger generation,” ​said the Shiseido spokeswoman.

Currently, A.S. Watson operates over 100 stores in Indonesia and over 750 stores in the Philippines.

Ngai said: “The customer demand for Japanese Beauty products in Indonesia and the Philippines are huge but both two markets are new to Shiseido. With an extensive store network in these markets and sophisticated customer insights, ASW can successfully help Shiseido enter the new markets and extend its reach into Indonesia and the Philippines.”​

Lai added: “With our customer insights and global knowledge of the beauty industry, A.S. Watson is able to help its business partners enter new markets and engage the right customers efficiently.”​

Sustainable beauty

As part of the alliance, the companies have also pledged their commitment to sustainability.

“In today’s society, sustainability is crucial for consumers, the society to which they belong, and for the global environment, which supports people’s lives,”​ said Shiseido’s spokeswoman.

She added that Shiseido planned to focus on three key areas: person, community and planet.

“We identified key issues from the viewpoints of impact on our businesses and society’s expectations, align our activities with them and revise them regularly in accordance with changes in our society. Based on these, we selected three activity themes where we can contribute by leveraging our strengths; efforts toward realising diverse beauty, building an ethical supply chain, and recycling of resources.”​

Masahiko Uotani, representative director, president and CEO of Shiseido, added: “We are very excited about the new step in our long-term partnership with the largest health and beauty retailer in the world. One fascinating aspect of this partnership is that it keeps us innovating the beauty initiatives, addressing huge consumer demands in Asia on Japanese beauty products.”​.