Retail News CRM

Tag: Shiseido

  • Shiseido sales fueled by travel retail

    Shiseido sales fueled by travel retail

    Japanese beauty giant Shiseido Group has revealed strong sales revenue boosted by travel retail in its mid-year results.

    Shiseido sales reached ¥532.6 billion (US$4.8 billion), with ¥47.66 billion ($430.56 million) net income attributable to the business owners, 153.5 per cent above figures for the same period last year.

    A major influence on the group’s performance this year has been the 40.3 per cent increase in sales across the firm’s travel retail business.

    “In the travel retail business, the benefits derived from active investment in marketing, which included further increase of advertising and promotion in airports around the world, led to continued growth in sales of Shiseido, Cle de Peau Beaute, Nars, and Anessa that far outperformed last year, mainly in Asia,” the company reported.

    The company’s sales performance during this period has encouraged management to expect to achieve its “Vision 2020” goal of ¥100 billion ($904 million) in operating income and an operating margin of 10 per cent two years ahead of schedule.

    Lees ook:

    Lees ook:

  • Shiseido opens first IPSA TR counter outside Japan

    Shiseido opens first IPSA TR counter outside Japan

    Shiseido Travel Retail has opened a new travel retail counter for its IPSA skincare range at King Power International Group’s Rangnam Complex in downtown Bangkok.

    This is Shiseido’s first such installation for IPSA outside of Japan, and comes just four months after its inaugural store opening at Narita International airport.

    Shiseido said that the counter has been designed with the concept of “Comfortable Living Space”, using the brand’s signature colours (beige, white and black) and materials such as decorative plastering finishes and sliced natural wood veneer.

    The installation also features a seven-metre curved back wall and a spacious consultation area.

    Whelan looking to “work closely” with Shiseido

    Of the new IPSA counter, Shiseido Travel Retail Asia Pacific general manager Kenji Calméjanesaid: “The brand, with its 30-year history, is already well established in Japan and China – but there is ample opportunity for growth and to open the brand’s first travel-retail counter outside of Japan is a fantastic achievement for the team.

    “IPSA has global appeal, particularly with millennials, thanks to its personalisation, minimalist packaging and simple, natural ethos on skincare and we have no doubt the brand’s momentum in the travel-retail market will continue.”

    King Power International Group senior executive vice president Susan Whelan added: “It is with much pleasure that we welcome IPSA onboard. As a brand that is fast gaining popularity with the Chinese, who form one of our biggest customer bases, we look forward to working closely with Shiseido Travel Retail to bring more quality experiences and products from IPSA to our travellers.”

    Lees ook:

  • Shiseido recently started buying up tech start-ups

    Shiseido recently started buying up tech start-ups

    Japanese personal care company Shiseido has started buying up tech companies as a gambit to cater to a younger generation of buyers.

    Shiseido last year sold ¥1 trillion (US$9.3 billion) worth of beauty products last year, mostly in traditional stores. However, CEO Masahiko Uotani says consumers in their teens and 20s often prefer to shop online, which is why the brand is seeking to invest in expertise in such technologies as artificial intelligence and augmented reality.

    Uotani’s ambition is to help shoppers replicate online the experience of trying on cosmetics in a store, and use data from smart devices to create personalised make-up for customers.

    He says the younger generation does not often go into stores. “The way they buy, the way they share their excitement with their friends, is completely different from older generations.”

    Shiseido has already acquired for an undisclosed sum of the R&D team and other assets of Olivo Laboratories, a US start-up specialising in artificial skin technology, and earlier bought MatchCo, a California start-up that develops software customers can use with their smartphones to create customised foundation products matching their skin tones.

    Another acquisition has been Giaran, a startup that develops AI technology.

    Lees ook:

    Lees ook:

  • Shiseido’s results for 2017

    Shiseido’s results for 2017

    Shiseido just released its results for the Fiscal Year Ended 31 December 2017.

    Shiseido achieved Global Net Sales of ¥1,005,062 (compared to ¥850,306 in 2016) and a Global Operating Income of ¥80,437 (compared to ¥36,780 in 2016).

    In the Asia Pacific Business, the brands driving sales are Clé de Peau Beauté, NARS, and other brands in the prestige category, mainly in South Korea, Thailand, and Taiwan.

    Sales of Clé de Peau Beauté were particularly strong in the flagship store opened in Singapore.

    In the cosmetics and personal care categories, sales growth was seen for SENKA, which benefited from enhanced marketing tailored to the differing consumer preferences and lifestyles in each country, and for the sunscreen ANESSA, owing to an expansion of sales channels.

    The growth is the result of the improvement in the product mix and higher margins.

    The Shiseido Group formulated VISION 2020, a medium- to long-term strategy in 2014 while positioning the three years from fiscal years 2018 to 2020, as the period to accelerate growth in order to tackle a new strategy.

    It seems this long-term strategy is working and the company plans to announce the new three-year medium-term management plan on 5 March 2018, and disclose the consolidated results forecasts and the dividend forecast for the fiscal year ending December 2018, the initial year of the plan.

    Lees ook:

    Lees ook:

  • Shiseido celebrates the re-launch of Clé de Peau Beauté

    Shiseido celebrates the re-launch of Clé de Peau Beauté

    Shiseido Travel Retail has celebrated the relaunch of luxury brand, Clé de Peau Beauté with ‘A Radiant Day’ campaign, fronted by new global Ambassador – Academy Award-Nominated British actress, Felicity Jones.

    The campaign coincides with the introduction of Clé de Peau Beauté’s beauty products to its current travel retail offering. Clé de Peau Beauté has remained a top performing brand for Shiseido Travel Retail, up +120% on FY2017 and representing around 25% of total sales globally, according to the company.

    Asia Pacific and Chinese travellers a key growth driver for the brand. The re-launch will be promoted via an extensive strategic marketing campaign, with premium out-of-home advertising across Hong Kong International Airport already under way.

    A new flagship counter design will also be unveiled in April at T Galleria by DFS, Macau, Shoppes at Four Seasons, providing more engaging and meaningful shopping experiences for Clé de Peau Beauté customers. The aim is to roll out the new design across all travel retail counters in the second half of 2018.

    LOS ANGELES, CA – JANUARY 17: A general view of atmosphere at Cle de Peau Beaute Celebrates the Brand Relaunch with a Global Event in Los Angeles, hosted by Global Brand Face Felicity Jones at Hotel Bel-Air on January 17, 2018 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Shiseido)

    REVITALISED DNA

    With a revitalised brand DNA, “Intelligent, Uncompromising, Exquisite”, and a refreshed new tag line, “Unlock the Power of Your Radiance”, Clé de Peau Beauté has set its sights on becoming a global, luxury brand by 2020.

    Establishing a suite of new universal values – integrity, balance and authenticity, the brand’s newly appointed brand ambassador, Jones, reflects these seamlessly, the company said. Clé de Peau Beauté Chief Brand Officer Yukari Suzuki indicated a crucial element of Clé de Peau Beauté was to help customers feel the brand belonged in their lives.


    Lip Gloss - Dreamstone (High-res)NEW SS18 PRODUCTS

    The relaunch also introduces various new luxury SS18 products to Clé de Peau Beauté’s current travel retail offering. These include the Firming Serum Supreme, a clinically proven formula to unlock a new dimension of skin firmness, Radiant Lip Gloss (pictured left) a new and improved version of the brand’s original lip gloss; three new shades of Lipstick including Peach Stone, Crystal Star and Desert Rose; a new shade of Luminising Face Enhancer in lavender inspired by the spiral of a luminescent seashell; and a new take on its stick Concealer with new skincare ingredients for radiant skin.

    There is also focus on La Créme, a product Shiseido said continued to stand at the pinnacle of Clé de Peau Beauté skincare.

    ‘A Radiant Day’ has already achieved success following the official event launch with Jones, last month at The Beverly Hills Hotel in LA, along with new counter openings in MGM Macau, MGM Cotai and T Galleria by DFS Singapore.

    EXCITING TIME

    Shiseido Travel Retail Vice-President Marketing Elisabeth Jouguelet commented: “This is an exciting time for Clé de Peau Beauté as we look to establish the brand as a true market leader in luxury beauty.

    “The relaunch provides an opportunity for us to enhance the brand’s travel retail offering and solidify its position in the market as a prestigious, but accessible brand. All the elements of the relaunch, from taking on Felicity Jones as our global ambassador, to opening flagship stores in Asia Pacific, are part of a long-term strategy to draw our consumers in further; to offer them memorable, luxury experiences beyond the traditional sense of retail. We are looking forward to a new era for Clé de Peau Beauté.”

    Lees ook:

  • Shiseido launches new teen brand Posme

    Shiseido launches new teen brand Posme

    Shiseido looks to increase teen beauty sales with the launch of its open innovation project, Posme Me.

    Posme will consist of a variety of cosmetic and non-cosmetic products and services, which are collectively created by high school girls.

    According to the Japanese cosmetics giant, high school girls are becoming a major source of a new pop culture, following the “Millennials movement in Japan.”

    For the project, Shiseido has gathered an array of high school students and formed a team called Posme ＆ Co. The team currently consists of 40 members who live mainly in Tokyo.

    The influencer-group have been partnered with several companies to develop beauty products and services, as well as items beyond cosmetics, to fall under a new Posme brand, targeted at their peers.

    New products will include items favoured by high school girls such as sweets, stationery and fashionable accessories.

    The first product to launch will be a multi-use colour item, Play Colour Chip. It can be used in a variety of ways; be it, an eye colour or blush.

    “This product was developed through communication with more than 150 high school girls and will be sold in a set of six disposable chips of the same colour,” explained Shiseido in a press statement.

    “Play Colour Chip marks a change in cosmetics, transforming an item to be used individually into something that can be ‘shared or swapped’, creating a new form of enjoyment. The new chips offer more freedom in makeup, allowing users to coordinate colours with friends, try a new colour more easily, or enjoy a special colour for a special occasion.”

    A recent survey conducted by Shiseido revealed that 93% of female school girls perceived the novelty of the items because they can be swapped with friends, are easy to carry around, are good for a gift, and are perfect to try a new colour.

    Going forward, Shiseido plans to gather hundreds of Posme members throughout Japan with more products expecting to be released.

    The company is also launching a new shop, Posme Lab Shibuya, on 26 January, which will serve as a communication space for Posme members.

     The teen beauty initiative is the first project to form part of Shiseido’s Innovation Design Lab, a division first established by the company in January 2017.

    The Innovation Design Lab comes under Shiseido’s ‘Vision 2020’, and aims to “foster innovation”, a major goal of the firm’s mid-to long-term strategy.

    Lees ook:

  • Affinity Equity to bid on Stylenanda

    Affinity Equity to bid on Stylenanda

    Hong Kong’s Affinity Equity Partners has joined a bidding scramble for Korean budget fashion and cosmetics brand Stylenanda.

    Also in the race are LVMH-backed L Catterton, L’Oreal and Shiseido, with the bid worth up to KW500 billion (US$467 million), insiders say.

    Parent company Nanda has received letters of intent from potential bidders, including a local department-store chain, to sell a stake of up to 70 per cent.

    Launched in 2005, Stylenanda saw its sales soar to KW170 billion last year. While it started as a fashion brand, it has lately been focusing more on its cosmetics business. Now more than half of its sales come from its budget cosmetics brand 3CE.

    For its fashion business, the firm is focusing more on upscale boutique shops.

    CEO Kim So-hee, who owns the company outright, in 2016 sought to sell a sizeable portion along with management rights. There were negotiations with such candidates as Hyundai Department Store and TPG, but these collapsed.

    Meanwhile, L Catterton has been buying stakes in Korean companies in recent years, including US$80 million in YG Entertainment, $50 million in cosmetics maker Clio, and US$230 million in eyewear brand Gentle Monster.

    Affinity has also been buying into Korean firms. In August it bought plastic container company Lock&Lock for KW629.3 billion.

    Lees ook:

    Lees ook:

    Lees ook:

  • Mitsui Outlet Park continue its opening phase

    Mitsui Outlet Park continue its opening phase

    About 35 new stores are lined up for the soft opening of phase two of Mitsui Outlet Park KLIA Sepang on December 15.

    An official launch is slated for February, says Mitsui Fudosan (Asia) Malaysia, which runs the project in a JV with Malaysia Airport Holdings, MFMA Development.

    Shops making their first appearance in Malaysia include Hummer bags store and The Beauty Laboratory by Shiseido.

    “The expansion will also introduce a good retail mix ranging from fashion apparel and accessories, sports and kidswear to cosmetics and personal care, with diversification into entertainment and amusement as well as specialty stores,” says Mitsui Fudosan.

    Phase 2’s environmental design follows the park’s “tropical resort” theme and also features the Sky Walk, River Walk and Forest Walk. The first phase opened in May 2015.

    Headquartered in Japan, Mitsui Fudosan is expanding in Asia with Shanjing Outlet Plaza Nimbo and Mitsui Outlet Park Linkou in Taiwan.

    For next year the group plans to open Mitsui Outlet Park Taichung Port in Taiwan, followed by Mitsui Shopping Park LaLaport Shanghai Jinqiao in 2020 and Mitsui Shopping Park LaLaport Kuala Lumpur in 2021.

    Lees ook:

    Lees ook:

  • Franck Marilly, new President and CEO for Shiseido EMEA

    Franck Marilly, new President and CEO for Shiseido EMEA

    Japanese cosmetic giant Shiseido has named its new CEO for the Europe, Middle East and Africa (EMEA) region, after it confirmed earlier in the month that Louis Desazars is set to leave the company to “pursue other interests.”

    Franck Marilly has been appointed as President and CEO of Shiseido Group Europe, the Middle East and Africa (EMEA), effective January 1, 2018. Marilly will report to Shiseido Group President and CEO Masahiko Uotani.

    Marilly previously served as Managing Director Europe at Chanel’s Fragrance & Beauty division.

    At Shiseido, he takes over from Louis Desazars, who has served in the role since 2015.

    “Along his tenure at Shiseido Group, Louis made significant achievements and contributions such as initial development of BPI in Europe and in the United States and the successful brand development of Nars during his years in New York. Under his chairmanship in EMEA, he led the Shiseido Group EMEA new organization bringing the entities and brands within the region into ‘One Shiseido’ and directed the signature of a license agreement with the Italian fashion house Dolce & Gabbana,” said the company in a statement.

    Frank Marilly will oversee all of the countries and local affiliates that make up the Japanese cosmetic group’s EMEA region. He will also take charge of the perfume labels Dolce & Gabbana, Fragrance Designer Brands (made up of Alaïa Paris, Elie Saab, Issey Miyake, Narciso Rodriguez, Zadig & Voltaire) and Serge Lutens.

    Earlier in month, Shiseido published a third quarter net loss, despite notable growth for the first nine months of 2017. Shiseido said combined turnover over the nine months rose 17.4% to 731.2 billion yen, close to 6 billion euros.

    While the company recorded strong Asia revenues, particularly in Japan and China, European growth remained weak and sales slowed in the Americas, making up just 13.5% of total turnover.

    Shiseido CEO Uotani announced that the company is aiming to be one of the top five players in the luxury sector in the EMEA region, and wants to achieve 9% global market share of the perfume industry in the next five years.

  • Shiseido Japan and China sales jump, despite Q3 net loss

    Shiseido Japan and China sales jump, despite Q3 net loss

    Shiseido published a third quarter net loss, despite notable growth for the first nine months of 2017, pushed on by Asia revenues, particularly in Japan and China.

    The Japanese cosmetics group said combined turnover over the nine months rose 17.4% to 731.2 billion yen, close to 6 billion euros, according to a press release.

    However, depreciation of assets related to its struggling American subsidiary Bare Escentuals pushed Shiseido into a net loss of 17 billion yen over the nine months, compared to a net profit of 37.2 billion yen the year before,

    For the same period, operating profit jumped 82.4% to 70.7 billion yen over nine months (567 million euros), highlighting the US subsidiary sale’s negative impact on profits.

    Japan remained its strongest market, accounting for 44% of sales and revenues surged in China – which makes up 14% of total sales –as well as the rest of Asia, which continued to grow at a constant rate, said the press release.

    Conversely, European growth remained weak and sales slowed in the Americas, making up13.5% of total turnover.

    Looking ahead, Shiseido is predicting a modest annual net improvement of 5 billion yen (38 million euros).

    Earlier in the month, Shiseido relinquished firm Zotos— its Professional business division in North America to consumer goods firm Henkel for $485 million, saying at the time it plans to hone in on Asia’s professional market.

    Shiseido said in a press release the group would use the funds gained from the Zotos sales “to further pursue its strategic objectives of continuing to nurture its Prestige brands, reinforcing production capability and other activities.”

    Earlier in 2017, Shiseido appointed Nathalie Broussard to the newly created post of Scientific Communications Director EMEA, with the mission of bolstering relationships with the science and technology community in Europe, the Middle East and Africa.

  • Shiseido Group brand role for Felicity Jones

    Shiseido Group brand role for Felicity Jones

    Academy Award-nominated English actress Felicity Jones has been appointed the new face of the Shiseido Group’s luxury skincare and cosmetics brand Cle de Peau Beaute.

    Her debut will be in a campaign to launch in January shot by British photographer David Sims.
    “Felicity is aspirational, yet highly relatable, which makes her the ideal face of Cle de Peau Beaute,” says brand director Yukari Suzuki. “She embodies the brand’s DNA: intelligent, uncompromising and exquisite.”

    Jones is best known for her role opposite Eddie Redmayne in James Marsh’s The Theory of Everything, which saw her nominated for four awards. Most recently, she led the cast of Rogue One: A Star Wars Story. The Oxford-educated actress stars next in the title role of a Ruth Bader Ginsburg biopic, On the Basis of Sex, focusing on the Supreme Court justice’s career struggles fighting for equal rights.

    “It’s important to me that my values align with any brand I’m affiliated with,” says Jones. “Cle de Peau Beaute made it clear they approached me because of my principles and dedication.”

    Her spring/summer campaign was shot over two days in London and will be featured globally in print and online, and Jones will attend exclusive launch events internationally.

    Cle de Peau Beaute means “the key to skin’s beauty”, and the Japanese brand is available in 13 countries including China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam.

    Lees ook:

  • Shiseido and King Power International capture beauty of Thailand in 360° campaign

    Shiseido and King Power International capture beauty of Thailand in 360° campaign

    Shiseido Travel Retail has partnered with King Power International (Thailand) to deliver a major promotional campaign which aimed to capture the beauty of Thailand.

    For the initiative, Shiseido collaborated with Thai artist Riety Darisa K and influential Chinese fashion and lifestyle blogger Magic Yang  to target Chinese travellers through a 360 ̊ programme.

    The programme included social media and digital content, in-store activations and Travel Retail Exclusive (TREX) products available only at King Power Thailand stores.

    The campaign, which aimed to capitalise on the large number of Chinese visitors to Thailand, tapped into the power of influencer marketing to push brand awareness and drive sales among Shiseido’s key consumers, particularly millennials. Magic Yang, a leading influencer in China, has a strong following of millennials on social media who are inspired by her personal style, her love for travel and adventure and the places she visits.

    With Riety as her guide, Magic was taken on a tour of Bangkok, where she discovered the capital city’s art, beauty and culture. Her trip to Thailand was captured in a promotional film, called ‘The Beauty of Thailand’.

    Leading up to the campaign’s official launch on 1 April, Magic posted exclusive behind-the-scenes pictures of her trip to announce the collaboration and shared the film on her Weibo and WeChat accounts. The film features subtle placement of Magic’s top three Shiseido beauty picks: Ultimune Power Infusing Concentrate, Perfect UV Protector SPF 50+ and Rouge Rouge.

    The campaign was prominently highlighted on King Power Thailand’s website and social media platforms and a dedicated campaign micro-site. Travellers were also targeted prior to departure via advertising.

    The in-store activations at Bangkok Suvarnabhumi Airport and in the King Power Srivaree Complex downtown store are running until 31 May. The airport activation features a pop-up store which offers complimentary skincare treatments and lip make-overs, as well as a Photo Booth where travellers can personalise their photos with Riety’s Thai-inspired visuals to be printed onto their own customised luggage tags.

    To further underline the Sense of Place focus, Shiseido has developed an exclusive skincare set specially curated by Magic Yang and packaged in bespoke sleeves featuring art by Riety. The limited-edition set, only available at King Power Thailand stores, includes Ultimune Power Infusing Concentrate for Face and Perfect UV Protector SPF50+/PA++++.

    Customers spending THB 14,000 (€368) or more will receive a complimentary ‘The Beauty of Thailand’ cosmetics bag and those spending more than THB 16,000 (€420) can claim an additional Shiseido tote bag.

    Lees ook:

  • How to grow for Luxury brands

    How to grow for Luxury brands

    Luxury brands need to use new technologies and offer experiences for their customers, the second Luxury Society keynote event in Shanghai has been told.

    UCO Cosmetics CEO Arthur Zhang told the event that the early-stage eCommerce model of simply providing a platform for selling products online is dead.

    He said key technologies being experimented and improved upon in China include augmented reality, virtual reality and live-streaming.

    “The millennial generation in China, which already numbers about 300 million people, seeks experiences and emotional connection – they are not just bystanders,” DLG China partner/MD Pablo Mauron told the audience of more than 150 luxury-industry brand executives. “As a result, live-streaming has become a medium for them to express themselves.”

    He told how brands such as Maybelline, Montblanc and Swarovski are taking advantage of these new opportunities.

    Underlining the key message of the event that eCommerce is changing, CEO Thibault Villet of luxury fashion eCommerce platform Mei.com told how a live-streamed show in collaboration with TMall resulted in 65 per cent of the products featured quickly selling out.

    Meaningful data

    Social customer-relationship management (CRM) makes highly targeted messaging and engagement possible, the event was told by Four Seasons Hotels Asia Pacific director of marketing communications John Hamilton. He said the luxury hotel chain has been gaining meaningful data about its customers, which in turn has driven growth. In the past year, through trial-and-error and optimisation, the group has defined a CRM-led content strategy on WeChat.

    Celebrity and key-opinion-leader partnerships can make a big impact in China, said East Entertainment commercial director Qing Dai, who spoke of her experience of partnering luxury brands with appropriate celebrities. One of Easy Entertainment’s most successful was in linking up Cartier with singer/actor Lu Han.

    Baidu GM for East China Wan (Grace) Zhang said Cartier was the most-searched luxury watch brand among the generation born between 1990 and 2000, linked to Cartier’s collaboration with Lu Han.

    Other speakers at the event included Four Seasons Hotel Pudong (Shanghai) GM Arthur Ho, writer Casey Hall of Women’s Wear Daily, Digital Luxury Group founder/CEO David Sadigh and MD for China Pablo Mauron, Baidu senior project manager Di Fu and Sephora China digital manager Vanessa Qian.

    Attendees included representatives of Alexandre de Paris, Baume & Mercier, Bottega Veneta, Bulgari, Cartier, Chanel, Chaumet, Conde Nast, De Beers, Dior, Hublot, Loewe, LVMH, Marc Jacobs, Massimo Dutti, Michael Kors, Montblanc, Nars, Net-a-Porter, Nike, Sephora, Shiseido, Swarovski, TAG Heuer, Tiffany & Co and Vacheron Constantin.

    Luxury Society, published by Digital Luxury Group, is an online destination for luxury-brand executives covering digital and technology matters and with more than 40,000 members across 150 countries.

  • Cross-border eCommerce ‘set to skyrocket’ in China

    Cross-border eCommerce ‘set to skyrocket’ in China

    Cross-border eCommerce (CBEC) is set to skyrocket in China according to a new report from international think tank Fung Global Retail & Technology.

    To capitalise on this, international retailers need to complement their existing expansion strategy with online sales platforms, says Fung Global MD Deborah Weinswig.

    Cross-border eCommerce is the most efficient platform to reach increasingly affluent and sophisticated Chinese shoppers seeking products from overseas, says the report, The International Retailers’ Guide to Cross-Border E-Commerce in China.

    With Chinese authorities relaxing the rules, online purchases of overseas products are expected to increase to US$285 billion in value in 2018, up from US$136 billion last year.

    As well as authenticity being less of a concern, eCommerce purchases attract less taxes so are cheaper for consumers, writes Weinswig. As a result, it is projected that a quarter of the population will shop on foreign sites or through third parties in 2020, up from 15 per cent this year.

    “We expect CBEC will drive the next leg of eCommerce growth as Chinese eCommerce companies and international retailers launch globalised versions of their portals. By selling through CBEC, international retailers can reach Chinese shoppers regardless of whether or not they have a physical presence in China.”

    China is already the largest eCommerce market in the world, with the use of CBEC via such marketplaces as JD Worldwide and Tmall Global being attributed to the continuing rise of the upper middle class with its growing use of the internet and belief that international brands are of higher quality.

    Regulations formalised

    Most shoppers seek items related to wellbeing such as cosmetics and organic foods, expensive or hard to find domestically, says the report. Many foreign eCommerce companies have launched Chinese websites, and since late 2014 authorities have been formalising regulations including tax reforms and expediting customs clearances.

    Japanese companies in particular are targeting Chinese CBEC shoppers, using mobile apps such as Rakuten and China’s Wandou.

    Choosing the right platform is crucial, writes Weinswig. Options include…

    • Online marketplaces such as Alibaba’s Tmall Global, a third-party eCommerce platform that lets brands open a storefront. International distributors using this platform include Macy’s, Metro, Shiseido and Uniqlo.
    • Online direct sales such as Amazon.cn, Jumei Global Store, Kaola.com (for smaller brands) and Vipshop. Distributors buy from the retailers to resell to consumers.
    • Hybrid eCommerce platforms such as JD Worldwide that combine elements of an online marketplace and online direct sales. JD Worldwide partners include eBay, Lotte, Rakuten and Unilever.
    • Overseas shopping platforms.

    “To succeed in the Chinese market, international retailers are advised to have a strategic plan for CBEC that complements their China strategy,” writes Weinswig. “International retailers will need to decide which cross-border channels to sell on, driven by considerations of each platform’s targeted clientele and product category, costs, track record and suite of value-added services.”

    Fung Global Retail & Technology is based in Hong Kong, London and New York.

  • Shiseido profits leap 135 per cent

    Shiseido profits leap 135 per cent

    Shiseido profits for its latest nine months more than doubled over the same period last year.

    ‘New income’ leaped 135 per cent to a record ￥37.2 billion (US$345.8 million) for the nine months to September 30. The cosmetics company attributes this to several factors including an increase in operating income, the sale of intellectual property rights associated with the Jean Paul Gaultier brand, and gain from the sale of its Kamakura factory site.

    Shiseido’s operating income increased 17.1 per cent year on year to ￥38.7 billion. As well as “substantial” grown in its home market, it also had higher sales in Chinai and in travel retail.

    However, sales fell in the Americas, Asia-Pacific, Europe, the Middle East and Africa.

    The company still expects its full-year net profits to grow by 1.8 per cent to Y30 billion with a significant year-on-year decrease in operating income in the fourth quarter.