Shiseido partners with Aura Beaute Group

Firm strengthens links in Indonesia

The entrance of Shiseido's beauty salon, Pieter Lim in Medan

Shiseido has announced a new partnership with the Aura Beaute Group in Indonesia, forming a new company – PT Shiseido Professional Indonesia. The company will be responsible for importing, marketing and trading Shiseido Professional products in the country.

Shiseido is the main stakeholder in the group, with an ownership ratio of 65% to 35%. The development is part of Shiseido's medium- to long-term strategy, VISION 2020, which will see the company restructure into four groups: Prestige, Cosmetics, Personal Care and Professional. Existing individual brands will be repositioned within the new structure. The strategy was announced in December 2014 with the aim of strengthening Shiseido's branding and marketing worldwide.

The entrance of Shiseido's beauty salon, Liberty, in Jakarta

Indonesia's large population, which currently stands at 250m, and growing wealthy class make it a promising market for Shiseido's professional business. The company said this new venture "represents an important step for the business to capture this growth opportunity through new operations scheme." The brand also stated that it expects the move to have limited impact on its consolidated earnings for 2015 but should contribute towards growth in the future.

Shiseido Professional launched in 2013 and is claimed to be very popular with beauty salon owners. Shisiedo added: "We will step up our efforts to enhance the brand's prestigious image in the region through forging strong partnerships together with top beauty salons."

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