TOKYO. - Thursday, April 10th 2014 [ME NewsWire]
(BUSINESS
WIRE) Shiseido (TOKYO:4911) has concluded a joint venture agreement
with PT Sinar Mas Tunggal, a group company of the Indonesian
conglomerate, Sinar Mas Group. Shiseido Co., Ltd. and the Sinar Mas
Group will hold equity shares of 65% and 35%, respectively of the newly
established PT Shiseido Cosmetics Indonesia. Business operations are
scheduled to commence in July 2014.
In the Indonesian market,
which offers high growth potential, Shiseido will strive to boost sales
not only by continuing to foster its SHISEIDO global brand promoted
around the world, but also by stepping up focus on the masstige* market.
This sector is the largest cosmetics market zone and is anticipated to
maintain strong growth.
* Masstige, coined from “mass” and
“prestige,” refers to a category that is “more expensive than
mass-produced products, but more moderately priced compared to prestige
products.”
Indonesian Market
Indonesia has the world’s
fourth largest population of 244 million (2012), about 60% of which are
under the age of 35. Notably, the younger population in urban areas is
growing at a remarkable pace, generating anticipation for further growth
in income and consumption. The Indonesian market as a whole has
achieved rapid recovery from historic economic downturns and the
cosmetic market specifically has been growing at a robust annual rate of
over 10%, which is projected to be sustained according to Shiseido’s
estimates.
Background of the Establishment of the Joint Venture and Future Marketing Plans
Shiseido
initially launched sales activities in Indonesia in 1958. Since 1994,
the Company has been steadily increasing sales by marketing its products
through its distributor, PT Dian Tarunaguna, a Sinar Mas Group company.
Exploring the possibility of direct investment in the high-potential
Indonesian market, Shiseido decided to establish the joint venture by
taking the existing collaborative relationship with the Sinar Mas Group
to new heights.
In Indonesia, in addition to its SHISEIDO global
brand, Shiseido launched its highest-end brand clé de peau Beauté in
2010, available in prestige department store channels. Going forward,
the Company will not only reinforce its prestige product category, but
also strengthen marketing efforts for the masstige segment with Za, a
skincare and makeup masstige brand that targets Asian women in their
20s.
Shiseido’s President and CEO Masahiko Uotani said, “We are
truly grateful for the contributions Sinar Mas, the most powerful
business partner in Indonesia, has made in developing the Shiseido group
brands. With these new joint efforts, we will start a new era of the
Shiseido group brands to bring an even stronger value to customers in
Indonesia.”
Upon establishment of the joint venture, Mr. Franky
Widjaja, Vice Chairman of Sinar Mas, stated, “We are delighted to have
been able to establish PT SHISEIDO Cosmetics Indonesia jointly with
Shiseido. We will further strengthen our marketing efforts, and develop
the Shiseido group brands into top brands in Indonesia, brands loved by
many customers.”
Outline of the New Company
Company Name PT SHISEIDO Cosmetics Indonesia
Location Jakarta, Indonesia
Investors Shiseido: 65%, Sinar Mas Group: 35%
Capital 50.0 billion rupiah
Representative Director Yu Okazawa
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50841013&lang=en
Contacts
Shiseido Co., Ltd.
Satoshi Hirota, +81-3-3572-5111
PR Department
satoshi.hirota@to.shiseido.co.jp
Shiseido Co., Ltd.
Satoshi Hirota, +81-3-3572-5111
PR Department
satoshi.hirota@to.shiseido.co.jp
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