China is top priority
Shiseido\'s strategies to overcome problems on its Japanese domestic market and boost global business have been underlined in the cosmetics group\'s annual report.
The report confirms the spring statement by its new president Hisayuki Suekawa that its aim is to achieve 50% of group sales through the international market by 2017 with China as top priority. China already accounts for 10% of Shiseido\'s total sales of around €5.8bn and the number of consumers is forecast to rise to some 350 million by 2020.
Suekawa has said that with growth in foreign markets, sales are targeted to rise in double-digit terms this year, though concerns over the domestic market remain. Some ¥20bn in investment is being ploughed into growth projects, some ¥13bn in the international sector – again mainly in China.
The annual report meanwhile outlines aspects of globalisation strategy in the prestige category. Three areas are to be developed: the global Shiseido brand, cle de peau Beaute and Bare Escentuals.
The Shiseido brand will be developed through strengthening lines and enhancing brand concept. The cle de peau Beaute brand was renewed in spring this year and will be directed towards affluent consumers in Asia and the US. Synergies with Bare Escentuals will be developed with a focus on further US growth.