Press conferences for the 150th anniversary of Shiseido Group in China were held concurrently in Shanghai and online on Nov. 15 2022.
China has grown to be the engine of Shiseido Group’s performance development after 41 years in the country, but it is also experiencing growing challenges. How would Shiseido invest in China during the 150th anniversary, a historical turning point? What fresh patterns will emerge in the market the next year?
Shiseido’s president, Masahiko Uotani, said that the company intended to build “the world’s biggest skin care group.” since 2021. Based on that vision, Shiseido China released a number of new development initiatives as part of the new corporate strategy, including innovation and expansion into new markets, brands, and products in China.
- Invest and Innovations
Shiseido China, the largest international market for the company, now manages 26 skin care brands. In established sectors like anti-aging and sun protection, it already has a robust and well-balanced brand portfolio. It has also extensively deployed in new areas including sensitive skin, green, pure skin care, and males. a brand that may expand.
Shiseido China’s CEO, Kentaro Fujiwara, emphasized that Shiseido is extremely confident about the potential of the Chinese market and would continue to grow investment. Shiseido will continue to make investments in China over the coming years, creating the second-largest R&D facility in the world there. It will also deepen its research on Chinese consumers’ skin, incubate regional innovations like oral and medical beauty, and work with all parties to speed up open source innovation.
- Introduce Mature Brands
Shiseido China is implementing multifaceted strategic initiatives in accordance with the “Successful Skin Beauty” plan. To address a variety of demands, the first is to continually release new ones on established, mature brands. A typical example is the luxury beauty personalization brand Infusa from Shiseido. Infusa has dedicated itself to providing customers with “tailor-made” skin beauty solutions ever since its founding in 1986.
The National Medical Products Administration (NMPA) has agreed to implement the cosmetics customized services pilot program in selected locations by issuing the “Notice on Carrying out the Pilot Program of Cosmetics Personalized Services”. Additionally, this indicates that China firmly supports “customized” cosmetics at the governmental level and encourages them at all levels. To further validate the argument, the previous “Several Regulations on the Innovation and Development of the Cosmetics Industry in Pudong New Area, Shanghai” have also been put into effect.
- New Brands and New Niches
Shiseido China’s ongoing brand launches and market expansion for skin care products are key components of its overall business plan. Shiseido China has launched five brands, including Royal Ginza, Jiyanzhiguang, Ludanshi, Shike, and Liuzhilu between 2021 and the present, a period of less than two years. Jiyanzhiguang and Shike are two of these new brands.
Shiseido clearly values the Chinese market as seen by the almost simultaneous launches of the brand in China and Japan. not just new brands but also new markets and goods. Shike, a brand of men’s skin care products, will introduce two new items in the next year; Ji Yan Zhi Guang, a brand of home beauty goods, established five stores in four Chinese cities last year.
- Oral Beauty and Medical Beauty
Shiseido’s priorities for the next year are medical and oral beauty.
Shiseido will develop the brand-new “skin beauty” industry in addition to the initial skin care and makeup sectors. After skin care and makeup, oral beauty will grow to be Shiseido’s third-largest category.
Shiseido’s China Oral Beauty Division director, Lai Peiyun, said at the press conference today that the company “will develop a worldwide Oral Beauty Division, and continue to Expand the oral beauty brand matrix” for the next year.
The oral beauty industry in China is about to experience a period of fast growth with enormous market potential.
Oral beauty product sales would climb by 2266% year over year in 2022, according to statistics from Tmall International for the period of 618. China is now the second-largest oral beauty industry in the world after Japan, with a market value of 52 billion US dollars in 2020 and a projected increase to 69 billion US dollars in 2026. On June 18 of this year, three oral beauty products were simultaneously released in Japan under the INRYU brand, a cutting-edge technology oral beauty line created by Shiseido Group specifically for Asian women.
- Medical Beauty
With an investment of about 100 million yuan in Chuangjian Medical, a Chinese manufacturer of recombinant collagen raw materials, in August of this year, Ziyue Fund, the first investment fund formed by Shiseido in China, took the lead.
After September, the “Fibona” (fibona) open innovation initiative from Shiseido R&D Center also made an announcement about its arrival in China. Therefore, it is clear that Shiseido would likewise “place a major stake” in the field of medical beauty.
- Green Technology
Shiseido China stated that as part of its plans for green growth, it would actively promote beauty refills in the future, speed up green growth, and support the circular economy.
According to estimates, Shiseido will provide refills for more than 150 single prdoucts in the Chinese market by 2023, and all of its brands’ flagship products will also offer refill alternatives.
- Public Welfare
Shiseido China also unveiled an overweight plan for its public welfare initiative “Lavender Garland” as a significant component of the new development strategy.
According to sources, the “Lavender Wreath” arrived in China in 2022. Makeup artists from different Shiseido Group brands created stunning looks for a number of cancer sufferers, and the professional photography firm Tian Zhenlan will capture each smiling face.
According to Shiseido China, it will work with Naive Blue in 2023 to expand the “Lavender Garland” into more Chinese cities and assist more patients with their skin issues so they may smile brightly and rediscover their pleasure for life.