Retail in Asia

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Shiseido addresses the report on transferring its Personal Care business

Shiseido

Last week there was a Bloomberg report, later picked up by other media, stating that Shiseido Company, Limited would transfer its Personal Care business. The company released a statement to highlight that there is no official news about that.

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The company is currently in discussions with CVC Asia Pacific Limited regarding a transfer of its Personal Care business, mainly operated globally in Asia (and operated by FT Shiseido Company, Limited in Japan) around the first half of this year and subsequent joint management of the business aimed at its further growth and development as a shareholder of the company which will operate the transferred business; however, no formal decisions have been made as of yet.

The company has been promoting its “Prestige First Strategy” and will continue to strengthen efforts in this core business with the aim of becoming a “premium skin beauty company” utilizing digital technology and centered on the Prestige/Premium beauty area. Shiseido aims to be the world’s No. 1 company in this area by 2030.

Meanwhile, Personal Care business has long operated with leading brands in low-priced hair care, skincare, and body care, mainly for the mass market such as drug stores and mass retailers.

In Japan, China, and other Asian countries and regions, the brands are widely known and supported by many consumers. However, in order to maximize the potential of the business and further grow the brands in this competitive market, the company needs to make concentrated investments in product development and advertising, and in order to build the new business model that makes this possible, Shiseido is investigating various cases including the above.

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If a matter requiring disclosure arises, the company will promptly announce such matter, the company stated.