Transcription 1 Shiseido Marketing in China Introduction Shiseido is a leading Japanese cosmetics manufacturer that has been in operation for more than a century. With growth in domestic and international markets, specially those of emerging nations such as China, international development within the cosmetics industry is growing in importance.
Marketing strategies of mncs in india Shiseido marketing in china This kind of flexibility in its brand management model has helped Shiseido to take on different market segments in different markets quite successfully.
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Case- Shiseido: Channeling Cosmetics in China 1. Marketing and distribution channels for cosmetics products performed mainly transactional and logistical function. Distribution channels such as the voluntary specialty chain stores perform transactional function when they buy these cosmetic products from the manufacturer and sell them in their individual stores. “In modern China though, it is the Yangtze that has been promoted by the central government as the main national icon. This is to do with the Yangtze’s importance for China’s development. Guinness World Records, known from its inception in until as The Guinness Book of Records and in previous United States editions as The Guinness Book of World Records, is a reference book published annually, listing world records both of human achievements and the extremes of the natural world. The brainchild of Sir Hugh Beaver, the book was co-founded by brothers Norris and .
Despite the Chinese market s many issues, its scale as the world s largest cosmetics market is also expanding rapidly. Moreover, Japan was more known for its production efficiency, technological prowess and high quality electronics, but not for cosmetics and beauty products. Overview of Shiseido in China Shiseido is one of the largest cosmetic companies in the worldit enters the Chinese march in and built Aupres, which is a great brand of cosmetics especially created for Chinese women.
Competing with western megabrands in the Chinese market can be perceived as a preliminary battle for business in other emerging nations, where much future growth in new Shiseido marketing in china markets is expected Significance of This Case Study and Suggested Questions This case study describes Shiseido s business in China from the s, focusing particularly on the company s marketing strategy.
Shiseido Beauty Salon Co. So it is quite natural if it comes as a surprise that one of the strongest Asian cosmetic brands, Shiseido also comes from Japan.
Using this case study, the following questions can be considered to further deepen the understanding of global strategy. To that end, he put his best efforts into product names, containers, and packaging, which evoked the product. When it ventured into the cosmetics business from its core pharmaceutical business, it leveraged this very perception to the fullest.
Today, Shiseido, still has a great success in China market by focusing on local brands such as Aupres brand. Shiseido also plans to create other products in China to reduce its stocks and enhance its brand ambassadors in the country. Inbold structural reforms, such as consolidation and elimination of US subsidiaries, reduced the losses.
But over the recent past, one of the main reasons that have contributed to its success is its well managed brand management practices. By the late s, Shiseido started penetrating foreign markets in Europe and the United States with specific product lines.
Shiseido has used acquisitions as a main channel to gain foothold in the crucial cosmetics markets of Europe and United States.
Related Stories Patricia Pao Manufacturers have invested in training beauty consultants and product tie-ins with Taiwanese beauty-related television programs. Inthe company created Shiseido China Co. Recently inShiseido launched Senka at a lower price point to target consumers trading down but reluctant to give up on product quality.
It will be interesting to see the development of Shiseido and its brands in the next decade. Shiseido has set itself a target of increasing overall sales of at least a third to 1 billion yen in SZC, like SLC, began as an entity with both a sales group and a factory to roll out local production in China, and began by manufacturing and selling the Za brand for the Chinese market.
Domestically, Shiseido does not meet the growing demand for cosmetic products at lower prices, and, therefore, its revenue continues to drop.Case- Shiseido: Channeling Cosmetics in China 1.
Marketing and distribution channels for cosmetics products performed mainly transactional and logistical function. Distribution channels such as the voluntary specialty chain stores perform transactional function when they buy these cosmetic products from the manufacturer and sell them in their individual stores.
Shiseido has followed a strategy which is not so common for Asian brands expanding beyond the region. Shiseido has used acquisitions as a main channel to gain foothold in the crucial cosmetics markets of Europe and United States.
China’s cosmetics market, Retail sales value continued to soar in , albeit slightly slower growth against China’s cosmetics market has registered sustained growth for the past few years. China today is the largest emerging cosmetics market in the world.
Chozan offers resources for social media marketers, tips to optimize performance in the Chinese market as well as advertising guides and tailored trainings. Shiseido entered the Chinese market at the behest of the Beijing government and expanded its market by modifying its marketing strategy in response to changes in the marketplace.
Shiseido’s first success in China came from the AUPRES brand, exclusively developed for that market. Fragrances in China: Premium fragrances registered double-digit value growth in , at the expense of mass fragrances, which saw value sales fall.