Shiseido refocuses South East Asia strategy

Published: 5-Feb-2013
Colour Cosmetics Skin Care

Sino-Japanese tensions have prompted a strategy rethink by the Japanese beauty giant


Slowdowns in China’s economy and Sino-Japanese tensions have dampened Chinese demand for Japanese cosmetics. To compensate, Shiseido Co. is refocusing its international business to target South East Asia.

Production of skin care products and lipstick from will move from Shiseido’s Kamakura plant to its Kakegawa and Osaka factories, as well as to a new plant in Vietnam, which the brand sees as a strategic base for the overall Asian market.

Shiseido is expected to newly invest ¥2bn in Vietnam for an expansion starting this spring. The new facilities are expected to come on line early 2015, with annual output capacity to be increased by more than 50% from the current 45 million units a year to a level almost comparable to the Kamakura plant's 100 million.

Shiseido is expected to re-examine its business plans to increase emphasis on South East Asia, while down weighting China. Revenue from Shiseido's South East Asian operations is currently about ¥40bn, less than half of its Chinese business.

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