Shiseido and PT Sinar Mas Tunggal establish PT Shiseido Cosmetics Indonesia
Shiseido has concluded a joint venture agreement with PT Sinar Mas Tunggal, a group company of the Indonesian conglomerate, Sinar Mas Group. Shiseido and the Sinar Mas Group will hold equity shares of 65% and 35% respectively of the newly established PT Shiseido Cosmetics Indonesia, business operations for which are scheduled to commence in July 2014.
In the Indonesian market, which offers high growth potential, Shiseido says it will strive to boost sales by continuing to foster its Shiseido global brand, and by stepping up focus on the masstige market - the largest cosmetics market zone and anticipated to maintain strong growth.
With the world’s fourth largest population of 244m - about 60% of which are under the age of 35 - Indonesia's younger population in urban areas is growing at a remarkable pace, generating anticipation for further growth in income and consumption. The cosmetic market specifically has been growing at a robust annual rate of over 10%, which is projected to be sustained according to Shiseido’s estimates.
Shiseido initially launched sales activities in Indonesia in 1958. Since 1994, the Company has been steadily increasing sales by marketing its products through its distributor, PT Dian Tarunaguna. Exploring the possibility of direct investment in the high-potential Indonesian market, the firm decided to establish the joint venture by extending the existing collaborative relationship with the Sinar Mas Group. Going forward, Shiseido will not only reinforce its prestige product category with brands such as clé de peau Beauté, but also strengthen marketing efforts for the masstige segment with Za, a skincare and makeup masstige brand that targets Asian women in their 20s.
Shiseido’s President and CEO, Masahiko Uotani, said: “We are truly grateful for the contributions Sinar Mas, the most powerful business partner in Indonesia, has made in developing the Shiseido group brands. With these new joint efforts, we will start a new era of the Shiseido group brands to bring an even stronger value to customers in Indonesia.”
Mr Franky Widjaja, Vice Chairman of Sinar Mas, stated: “We are delighted to have been able to establish PT Shiseido Cosmetics Indonesia jointly with Shiseido. We will further strengthen our marketing efforts and develop the Shiseido group brands into top brands in Indonesia, brands loved by many customers.”