Shiseido Launches Men's Cosmetics in China
Shiseido will launch two series of men’s cosmetics in China from October 2001. Shiseido will take the lead in the men’s cosmetics market with the launch of JS (skincare products, haircare products and fragrances comprised of 8 items and 8 products with prices ranging from 70 yuan to 150 yuan) for the prestige market. JS is a men's cosmetic line of AUPRES, a prestige cosmetics brand exclusively for the Chinese market, and is targeting those individuals among the business elite around 30 years of age. Concurrently, the launch of UNO (skincare and haircare products comprised of 7 items and 7 products with prices ranging from 50 yuan to 75 yuan) will be introduced for the middle mass market, targeting consumers of the young generation from their mid-teens to 20s who are interested in fashion. (1 yuan = ¥14.5 as of August 29, 2001)
Shiseido's Position in the Chinese Cosmetics Market The cosmetics market (including toiletry products) in China in fiscal 2000 is estimated at ¥502,500 million on a shipment base. In 2010, the market scale is expected to expand to ¥1,200 billion, which is on par with the current scale of the Japanese cosmetics market of approximately ¥1,500 billion. Shiseido has been developing its cosmetics business in the Chinese market through two companies in Beijing and Shanghai. In 1991, Shiseido established a joint venture company, Shiseido Liyuan Cosmetics Co., Ltd., in Beijing, to promote prestige marketing. Followed by the start up of production in 1993, AUPRES (skincare, makeup and other products comprised of 67 items and 203 products with prices ranging from 45 yuan to 260 yuan) has been sold in major cities since 1994. On parallel with the development of the SHISEIDO brand, AUPRES is now positioned solidly in the prestige cosmetics market in China. In 1998, Shiseido established a cooperative company, Shanghai Zotos Citic Cosmetics Co., Ltd., corresponding to the needs of the middle mass market in China. The company is manufacturing and selling the self-selection brand Za (skincare and makeup products comprised of 30 items and149 products with prices ranging from 20 yuan to 120 yuan), which does not carry the Shiseido name.
Background to Introduction of Men's Cosmetic Products in China Currently, except for the existence of small corners for men's cosmetics in cosmetics stores primarily selling shaving goods, a full-range men's cosmetic brand that encompasses a line of skincare and haircare products scarcely exists in China. In the fall of 1999, Shiseido conducted market research in the four major cities of Beijing, Shanghai, Guangzhou and Dalian in China (target group: 1,000 males aged 20~ 49 years old), which resulted in gaining an understanding of the following findings. 1. Chinese males have their own particular skin problems. 2. Research shows that approximately 50% of Chinese males are using skincare products, such as emulsions and creams. However, they are mostly using women’s products instead of men's products. Therefore, they have an expressed desire to use men's cosmetic products related to their skin and hair problems. In addition, the number of males who are influenced by young, fashionable Chinese women is rapidly increasing, as accompanied by economic development mainly in large cities such as Beijing and Shanghai. Accordingly, Shiseido is introducing men's cosmetic products in anticipating the potential demand of these products in China. Through JS and UNO, Shiseido will provide suggestions for cleanliness care and expressing one’s individuality, as well as support Chinese males in being more fashionable.
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JS Product Outline
Product name: JS (8 items, 8 products) *The brand name of the product is derived from the Chinese word [JUN SHI], meaning “a man with an attractive appearance and wisdom,” which in turn takes the “J” and “S” from the English spelling of the first letter of each Chinese character. The name upholds Shiseido’s desire to support as many JUNSHIs in China as possible. Launch date: October 1, 2001 (Monday) Number of stores: Counseling sales at AUPRES counters in 160 department stores Price: 70 yuan ~150 yuan (¥1,015 ~¥2,175 yen) Target: Business elite, primarily around 30 years old Model: Mr. Ekin Cheng (Popular actor and singer from Hong Kong who is also overwhelmingly popular in China) Promotion plan: Promotional events to be held with JS model in Beijing in September and Shanghai in November along with active promotions via magazine advertisements and posters to communicate the impression of the introduction of a full-range of men's cosmetics designed for Chinese males. Sales agent: Shiseido Liyuan Cosmetics Co., Ltd.
UNO Product Outline
Product name: UNO (7 items, 7 products) Launch date: October 20, 2001 (Saturday) Number of stores: Self-selection sales at Za counters in 150 stores Price: 50 yuan ~75 yuan (¥725 ~¥1,090 yen) Target: Young males from mid-teens to 20s with an interest in fashion Characteristics: Released in Japan in 1992 as non-oily men's cosmetics targeting young males from mid-teens to 20s with an interest in fashion. Subsequently introduced in Taiwan in 1999. Currently on sale in Korea, Thailand, Singapore and Malaysia and becoming very popular as men's cosmetics from Japan. Model: Mr. Masahiro Nakai Sales agent: Shanghai Zotos Citic Cosmetics Co., Ltd.
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Outline of Shiseido Liyuan Cosmetics Co., Ltd. Company name: Shiseido Liyuan Cosmetics Co., Ltd Representative: Tsuyoshi Aoki, President & CEO Location site: Beijing Economic Technological Development Zone (15km southeast of central Beijing) Capital: 94,300,000 yuan (approx. ¥1,400 million) Investment ratio: Shiseido Co., Ltd. - 65%; Beijing Liyuan Cosmetics Co., Ltd. - 35% Scope of business: Production and sales of cosmetics products
JS Product List (8 items, 8 products) Product Name Features • JS Cleansing Foam This facial cleansing foam, which contains granules, quickly
• JS Hair Styling Mousse (Natural) This hair styling product provides a natural shine while also
Profile of JS Model Ekin Cheng Ekin Cheng was born in Hong Kong in 1967. His first professional job was an appearance in a commercial in 1985. Since that time, he actively started working as an actor and a singer. In 1995, he took the leading role in a movie series entitled Young and Dangerous, which made him a huge star. In 1998, he took the leading role in a movie called The Storm Riders, an even bigger hit than the movie Titanic in Hong Kong, and a film in which his popularity soared. In March 2001, the movie Tokyo Raiders was released in Tokyo. Cheng once again played the leading role in this movie, also starring Tony Leon and Kelly Chang. He is currently the most popular Hong Kong star, attracting a tremendous following.
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Outline of Shanghai Zotos Citic Cosmetics Co., Ltd. Company name: Shanghai Zotos Citic Cosmetics Co., Ltd. Representative: Tomoharu Seki, President & CEO Location site: Shanghai CITIC-Power Zhanjiang Industrial Park (10km east of central Shanghai) Capital: US$31.2 million (approximately ¥3,700 million) (US$1=¥119) Investment Ratio: Shiseido Co., Ltd. - 88%; Citic Shanghai Co., Ltd. -12% Scope of business: Production and sales of cosmetics products
UNO Product List (7 items, 7 products) Product Name Features • UNO Washing Scrub This facial wash cleanses off excess sebum and impurities in
Profile of UNO Model Masahiro Nakai Masahiro Nakai was born in Kanagawa Prefecture in 1972. In addition to being a member of a popular singing group in Japan, he has appeared in numerous promotions, commercials and television programs.
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Chinese males' awareness of cosmetics The Chinese male population is said to comprise approximately 700 million persons out of the entire population of around 1,300 million. In 1999, Shiseido conducted a survey of 1,000 males regarding the awareness of men’s cosmetics in the four largest cities of Beijing, Shanghai, Guangzhou and Dalian in China.
1. Skin problems of Chinese males 1. Sweat easily 31% 2. Oily skin 25% 3. Darkened skin 22% 4. Dry skin 22% 5. Bad complexion 17%
The land area of China is 26 times larger than the entire land area of Japan. Therefore, the climate in China is completely different in respective regions and cities. In comparison between the two major cities of Shanghai and Beijing, for example, while the climate of Shanghai is warm and humid throughout the year, Beijing is hot with heavy rainfall in summer and cold and dry in the winter. Also, China has characteristic continental phenomena, such as air pollution and yellow sand in the spring, which cause human skin impurities. Under such conditions, there are various types of skin problems among Chinese males, such as problems created by the physical characteristics of male skin, which tends to produce more sebum secretion, as well as other problems, such as dry skin, which is reflective of the particular climate conditions in China.
2. Cosmetics products usage among Chinese males 1. Facial emulsions and creams 50% 2. Eau de cologne 38% 3. Hair spray and hair mist 25% 4. Hair tonic 22% 5. Shaving foam 21%
Among Chinese males using cosmetic products, the usage rate of facial emulsions and creams, in particular, exceeded 50%, which is reflective of the characteristic climate conditions in China. On the other hand, most of those people are actually using women’s products to avoid skin problems, such as skin that is oily, yet rough. Based on these findings, we were able to perceive a demand for men's cosmetic products which are able to satisfy Chinese males' needs.
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3. Chinese males' awareness of their appearance 1. At least beard and moustache should be shaved 65% 2. Hair should at least be arranged properly 60% 3. Want to dress in a natural and casual way 57% 4. Does not feel uncomfortable using cosmetics 35% 5. Would like to pay more attention to hair care 28%
Males have a high awareness of appearance with regards to having beard, moustache and hair, so that, in general, people who are growing a beard or moustache are hardly seen. Also, a desire exists among Chinese males to be aware of certain fashion styles regarding their appearance, for example, “Want to dress in a natural and casual way.” This means that their awareness level of fashion with regard to their appearance is increasing in spite of such circumstances as not enough information regarding men's fashion in China.
4. Chinese males' willingness to use men's cosmetics products 1. I would like to use them very much 17% 2. I would use them 48% 3. I don’t know if I would use them 13% 4. I'd rather not to use them 12% 5. I don’t want to use them 10%
A total of 65% of the respondents would use men's cosmetic products in the future. This clearly indicates the potential need for men's cosmetics products in China.
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