Leveraging new listing Shiseido brand sales model change

Leveraging new listing Shiseido brand sales model change
The status quo of buying cosmetics through a single channel in a department store may break! Yesterday, Shiseido released the latest product "Yau Lai" series of cosmetics in Shanghai, but Shanghai's fashion women did not buy it! This strange phenomenon only because "Yau Lai" is only sold in Shiseido's national stores, and does not enter China's department stores. This means that currently, major cities such as Shanghai, Beijing, Chongqing, etc., which have not set up specialty stores, will be able to dispose of them. And before. Shiseido Tatsutatsu, chairman of Shiseido (China) Investment Co., Ltd., said: This is a major change in Shiseido’s sales model in China.

Department stores and specialty stores sell each
All along, whether it is international or domestic well-known cosmetics, counter sales are set up in department stores in major cities in China. But what if the customer lives far from the department store or does not have a large department store in the city? The store is a supplement to this market. Zhaiteng Zhongsheng further explained that as the only brand in China that sells cosmetics in the form of stores, department stores and specialty stores are the “two legs” of Shiseido, and they are indispensable. In the future, Shiseido's mid-to-high end series will be mainly sold through department stores, while the mid- to low-end series will be mainly sold through specialty stores. Products sold under the two models will not cross each other. For example: Shiseido Obolai sells only in department stores, while Lai Lai sells only through specialty stores.

According to reports, Shiseido has set up more than 1,400 specialty stores in 26 provinces in China since July 2004, when the stores were piloted in Zhejiang, and Shanghai, Beijing, and Chongqing have the largest sales of these three department stores. The city has not yet established a store. According to Zhai Teng Zhongsheng, whether it is a provincial capital city or a second or third-tier city, or even a county-level city, as long as cosmetics stores that currently engage in cosmetics sales and who are in favor of Shiseido’s management model and have undergone Shiseido training, can apply for the establishment of Shiseido counters in their stores. To become a Shiseido specialty store, no initial fee is required.

Store expansion drives Chinese factory expansion
Due to the low threshold, Shiseido cosmetics stores will inevitably expand rapidly. It is reported that the sales ratio of Shiseido’s department stores and specialty stores in China is about 4:1 in 2005, and 1:4 in Japan, which means that cosmetics stores will gradually become Shiseido’s important sales model in China. . According to Zhai Teng Zhongsheng, China’s Shiseido’s largest overseas market outside of Japan will maintain an annual growth rate of 25 to 30%. It plans to expand the number of its stores in China to 5,000 in 2008.

In August of this year, Shiseido's manufacturing base in Pudong New Area, Shanghai, has begun quietly installing new production lines. It is expected that it will be ready for operation by April next year, and the expansion of production lines will be proportional to the increase in specialty stores.

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