Japanese cosmetics company Shiseido has announced plans to introduce a new brand into China with the aim of gaining 20% growth in this market.
According to Yasuhiko Harada, the chief financial officer of Shiseido, the company made revenues of JPY690 billion last year. Of the total revenue, 10% was from the Chinese market.
Shiseido says that due to salary decreases and the aging population in Japan, its domestic market continues to decline. Therefore, the company plans to accelerate the development of its overseas markets and to increase its overseas sales by 50% by 2017.
To achieve overseas sales goal, Shiseido is planning to introduce a new brand, which will be sold through drugstores in China. As at September 2009, Shiseido's products were stocked in 4,300 cosmetics stores in China and the company hopes to increase the number to 5,000 in 2010.