Shiseido looks to the Philippines’ $3bn cosmetic industry to drive further growth in SEA
The newly-established Shiseido Philippines Corporation was a joint venture in partnership with Singaporean beauty distribution company, Luxasia.
Koji Nakata, managing director, Shiseido Philippines told CosmeticsDesign-Asia that the firm believes that this was the right time to further its ambitions in the Philippines, SEA’s third-largest cosmetics market.
“It is an exciting time to be a part of the country’s booming beauty industry. With a population of 103 million, the time is right to seize the growth opportunity in the Philippines, which represents close to US$3 billion in annual sales,” said Nakata.
“The time is also right to seize growth opportunities in Southeast Asia, a dynamic and diverse market with an emerging middle class that wields considerable purchasing power, and their own diverse set of needs and concerns.”
Strengthening foothold in the Philippines
This expansion opens new distribution channels in the Philippines and enables Shiseido to expand its current brand and product range
Since 2013, Shiseido has been delivering consistent double-digit growth in the Philippines.
“We are proud of what we have accomplished with the brand to date and are extremely delighted to move our business forward with the launch of the Shiseido Philippines in partnership with Luxasia,” said Nakata.
To continue on this upward trajectory, it plans to introduce make-up brands such as NARS and Laura Mercier.
“There has been significant category growth for colour cosmetics in the past few years given the different ethnicities and this is what we are aiming to capitalise on,” said Nakata.
The company will also introduce skin care line Senka into the market, which has developed a strong following in Asia over the last few years.
In addition, the firm will also bring in brands from its fragrance portfolio such as Dolce & Gabbana, Issey Miyake, and Narciso Rodriguez.
Nakata added that it was no longer enough for a company like Shiseido to focus on one segment or another.
“In the past, the prestige and Mass Market brands were clearly separated but the lines are getting blurred these days. Defining or segmenting the market simply as prestige or mass-market brands is no longer enough. Hence, Shiseido must continue to be flexible to cater to all our consumers in the Philippines.”
He added: “Ultimately, we want our wide range of brands and products to be relevant and accessible to the younger market, given an increase in their disposable income and spending power of late.”
However, the company faces obstacles in the form of strong competition in the premium beauty category
“Many brands are penetrating the local market in a big way, so Shiseido will continue to strive to be the most relevant and preferred choice for our consumers, by aligning to their preferences and evolving to meet their ever-changing needs and market demands,” said Nakata.
He concluded: “We will continue to focus on upgrading and expanding our stores, so that we can offer our consumers the widest range of beauty brands and products and ensure they are easily accessible.”