Shiseido China goes: "Store Route"
“The construction of specialty stores in the next few years will be our focus. Our goal is to open 5,000 stores in China by the end of 2008.†On September 5, 2006, Shiseido’s China Representative and Shiseido (China) Investment Limited. The chairman of the company, Saito Tadao, said in an exclusive interview with this newspaper.
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It is reported that in China, starting from the establishment of exclusive stores in 2004, Shiseido has built about 1,400 stores; in terms of sales, Shiseido has an absolute advantage in the department stores.
The new brand announced by Shiseido in Shanghai specifically for Chinese women will be officially listed on the Chinese market. The brand is also a brand new cosmetics business model launched by Shiseido Group in the Chinese market—the exclusive brand of cosmetics stores.
According to the Shiseido Group, this specialty store selling regular Shiseido products in the Chinese market has developed rapidly in China and has covered 26 provinces in China in just two years, with a total of more than 1,400 stores and nearly 700,000 members. .
Saito Tatsuhisa revealed that in Japan, the magic weapon that Shiseido is relying on to succeed is the store. Shiseido’s store has more than 80 years of history. Since its inception, it has co-existed with the department store and has opened more than 10,000 stores in Japan. , Store sales accounted for 3/4 of its total sales. In China, the situation is exactly the opposite. Shiseido is currently relying mainly on the sales model of large department stores. Currently, large department stores account for 3/4 of Chinese sales, while specialty stores account for only 1/4.
"The Chinese people's current spending habits are to go to big department stores to buy good products, but this habit is beginning to change, so we began to take the store route in China. But the big department stores and stores each sell different products." Teng Zhongsheng said that the department store will take the high-end product line, and the store's level will be slightly lower.
Saito Saito also revealed that in order to meet the products needed for the rapidly expanding store, last month, Shiseido's factory expansion plan in Shanghai has started and will be completed in April next year.
“China is a particularly large market. Currently, it is comparable to Shiseido’s sales in the United States. It is the largest market outside of Japan. We attach great importance to the Chinese market and we hope to maintain around 30% in China in the next five years. The growth,"said Saito Saito.
According to public information, Shiseido’s global market share ranks fourth after L'Oreal, Procter & Gamble, and Unilever. 
