The Tokyo based cosmetics giant intends to strengthen its cosmetics business in the Philippines through the creation of a new subsidiary to better develop the sales of its prestige and luxury products.
The newly established Shiseido Philippines Corporation is the result of a partnership between Shiseido Asia Pacific Pte. Ltd., a wholly owned subsidiary of Shiseido that manages business activities in the Asia Pacific region, and Luxasia Partners Pte. Ltd., a company headquartered in Singapore that runs a beauty and luxury distribution business in Asia. The new company will start operations in July 2019, and Shiseido Asia Pacific will hold the majority stake in the company.
Currently, Shiseido has two authorized distributors in the Philippines. However, the newly established Shiseido Philippines will sell products from all of Shiseido’s business categories across Prestige, Fragrance, Cosmetics & Personal Care to accelerate investments in marketing and increase sales.
The Japanese group intends to strengthen its prestige brands such as Shiseido, Nars, and Laura Mercier in the Philippines and roll out its cosmetics and personal care products, including face cleansers and sunscreens that are popular in Asian countries, at outlets including drugstores that have risen in the ranking of cosmetics sales channels for the middle-income class.
With a population of more than 100 million, a high percentage of young people, and the third largest cosmetics market in rapidly growing Southeast Asia (approximately USD three billion based on Shiseido’s estimate), the Philippines is market with high potential for the cosmetics industry.
According to Shiseido, the country’s prestige beauty market is expected to continue its double-digit growth until 2020, with rapid expansion in the makeup category in particular. “In addition, with the expanded rising middle class, Japanese brands have gained an advantage in the country,” said Shiseido in a statement.