According to Shisiedo, the beauty device market in China was expected to grow at a CAGR of over 50% during the forecast period of 2017 to 2020.
The company expects the category to accelerate even faster now as COVID-19 has inflicted lasting consumer behavioural changes.
“The [beauty device] market has been growing significantly, and due to the stay at home movement the demand will increase,” said Masahiko Uotani, representative director, president and CEO of Shiseido Company.
Taking this trend into account, Shiseido predicted that the market for beauty devices in China would account for 70% of the market in Asia.
Shiseido said the category had high growth potential and expects its investments into Ya-Man to bring in high profitability.
Shiseido enters JV with Ya-Man
The maker of SHISIEDO, Anessa and Clé de Peau Beauté announced on August 6 that it has signed an agreement to establish a new company with Tokyo-based beauty device company Ya-Man.
According to documents published by Shiseido, it will own 65% of the new company while Ya-Man will own the remaining 35%.
Established in 1978, Ya-Man started out in Japan manufacturing and selling beauty equipment to beauty salons before pivoting to consumer-based products, which is now its main business.
The Japanese company entered the Chinese market in 2015 and is currently claims to be the top Japanese brand in China’s beauty device market.
Shiseido hopes to leverage on Ya-Man’s high-recognition among Chinese consumers to fast-track its way into the market.
By combining its skin care know-how and Ya-Man’s expertise in beauty devices, Shiseido hopes that it can capitalise on the quality and safety appeal of made-in-Japan products.
“With Shiseido’s skin care technology and Ya-Man’s specialised technology and expertise around beauty devices we will jointly develop and commercialise products in the fast-growing Chinese market,” said Uotani.
Uotani revealed that the company would be holding an event early 2021 to announce more details regarding products and said he expected to begin rolling out products from next year onwards in Japan and China.
The company would be prioritising the fast-growing Chinese market through its cross-border business, targeting consumers interested in anti-ageing.
China was the only region to achieve year-on-year growth for the company in its second-quarter this year due to the strong performance of its prestige brands, which surpassed even pre-pandemic growth levels.
However, the company believes the demand for beauty devices is also climbing in other Asian regions and hopes to expand it across Asia and travel retail.
This news comes after Shiseido revealed its three-year plan business to facilitate its recovery from COVID-19 by doubling down on its focus on skin care and skin health.
Aside from topical skin care products, the company said it would focus on beauty devices, dietary supplements and personalised services as well.