Japanese cosmetics giant Shiseido intends to expand its business in Indonesia by focusing on the masstige market, through the launch of its Za skincare and makeup brand, dedicated to Asian women in their 20s.
Shiseido already markets its Shiseido global prestige brand in Indonesia, as well as its high-end Clé de Peau Beauté brand, which was launched in prestige department store channels in 2010.
To strengthen its position on the market, the Japanese group recently concluded a joint venture agreement with PT Sinar Mas Tunggal, a subsidiary of the Indonesian conglomerate, Sinar Mas Group, Shiseido’s current distributor in the country. According to the agreement, the Japanese group will hold 65% of equity shares in the newly established PT Shiseido Cosmetics Indonesia. Business operations are scheduled to commence in July 2014.
With 244 million inhabitants in 2012, Indonesia has the world’s fourth largest population, 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 has been growing at a robust annual rate of over 10%, which is projected to be sustained,” Shiseido said.