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Shiseido Relocates Hong Kong "Shiseido Beauty Center"

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Shiseido Relocates Hong Kong Shiseido Relocates Hong Kong “Shiseido Beauty Center” On November 16 Friday, 2001, Shiseido Co., Ltd. will relocate its beauty center in Hong Kong, the “Shiseido Beauty Center,” to the prestigious Causeway Bay area, and will enlarge its floor space compared with the previous site. In 1968, in Hong Kong, Shiseido opened its very first beauty center. Shiseido Beauty Centers are not sales outlets. Instead, they are cosmetics information points for customers, and a means by which Shiseido can communicate directly with the public. Through the centers, Shiseido offers the public services such as skincare counseling and treatment, skincare-related and other seminars, etc., all free of charge. Approximately 8,000 customers annually use the Hong Kong Shiseido Beauty Center. The new “Shiseido Beauty Center” is being relocated to Causeway Bay, one of the premier Hong Kong addresses. The area is home to many leading department stores, including the prestigious Lane Crawford and Hong Kong SOGO, the most popular department store in Hong Kong. Shiseido made the move to enhance convenience for existing customers and to attract new customers. Compared to the previous site, the Shiseido Beauty Center will have more spacious consultation areas, beauty-related classroom and skincare treatment area. Shiseido will establish an area for customers to sample SHISEIDO cosmetics free of charge, a gallery to introduce Shiseido's corporate culture through display of its products and advertisements, and other facilities. The center's floor space, at 300m2, will be approximately twice that of the previous Hong Kong Shiseido Beauty Center. Shiseido forecasts 20,000 visitors annually. Through the relocation, Shiseido aims to enhance the satisfaction of existing customers and to win new loyal customers for the SHISEIDO brand. Also, Shiseido will incorporate the information it gathers from visitors to the beauty center in its marketing activities in Hong Kong and elsewhere in Asia. Shiseido Beauty Centers Worldwide Shiseido has established its beauty centers throughout the world with a view to enhancing customer satisfaction. In 1968, in Hong Kong, Shiseido established its first beauty center. Today, Shiseido has 17 such centers in seven countries and one special administrative region: Hong Kong (1), Taiwan (6), mainland China (3), Thailand (1), the U.S. (2), Canada (2), Germany (1) and Uruguay (1). Shiseido has three similar centers, where the public can sample cosmetics free of charge, known as “Cosmetic Garden [C],” in Japan. Shiseido established its first “Cosmetic Garden [C]” in Tokyo in 1994, followed by centers in Fukuoka and Osaka in 1996. As of the end of October 2001, the three “Cosmetic Garden [C]” centers have received approximately 2.7 million visitors. Shiseido in Hong Kong Hong Kong is a key Asian economy. Cosmetics makers from throughout the world have established bases in Hong Kong as a means of collecting lifestyle-related information. It is widely recognized that, as a cultural and commercial gateway, Hong Kong is of crucial importance to any company that wants to succeed in the Asian market. The scale of Hong Kong's own cosmetics market in 2001 is estimated at approximately ¥60 billion. In 1962, Shiseido started sales in Hong Kong through Dah Chong Hong, Ltd. (DCH). In 1998, Shiseido established a joint venture company, Shiseido Dah Chong Hong Cosmetics, Ltd., with DCH. Today, Shiseido has a very strong position in the prestige cosmetics market in Hong Kong. Indeed, SHISEIDO brand cosmetics are the top sellers through the major Hong Kong department stores. Shiseido also launched non-SHISEIDO brands in Hong Kong, to meet the diversified needs of the region’s customers. Most recently, in April 2001, Shiseido launched its prestige brand clé de peau BEAUTÉ. In addition, Shiseido markets Za, Zotos, Parfums ISSEY MIYAKE, Parfums Jean Paul Gaultier and ÍPSA. Shiseido is determined to stay attuned to the needs of the Hong Kong market to ensure future sales growth for Shiseido group brands. 2 [Reference] Hong Kong Shiseido Beauty Center Name: Shiseido Beauty Center Address: 1/F, Phase 2, Ming An Plaza, No.8 Sunning Road, Causeway Bay, Hong Kong Telephone: 852-2525-2522 Opening Hours: Tuesdays to Saturdays 10:00-22:00 Sundays 10:00-20:30 Closed: Mondays Employees: 15 Services Provided by the Hong Kong "Shiseido Beauty Center" (1) Sampling of Products Customers can test all SHISEIDO brand cosmetics, including skincare, makeup, fragrances and other products, free of charge. (2) Personal Counseling Visitors receive personal counseling, facial treatment and makeup, including skin diagnosis using the most advanced technology, skincare and makeup advice, and others, all free of charge. Reservations are required. (3) Beauty-related Lectures Shiseido will offer presentations on skincare, makeup and others. These are aimed at existing and potential customers. (4) Beauty Gallery Shiseido will outline the development of its corporate culture since its establishment in 1872 through displays of Shiseido products, posters and others. Outline of Shiseido Dah Chong Hong Cosmetics, Ltd. Name: Shiseido Dah Chong Hong Cosmetics, Ltd. President: Ms. Esther Kwong Vice President: Mr. Yosuke Nishikawa Address: 9F, 20 Kai Cheung Road, Kowloon Bay, Kowloon, Hong Kong Capital: HK$123 million (approximately ¥1,894.2 million*) Equity holdings: Shiseido 50%, Dah Chong Hong, Ltd. 50% (*As of November 12, 2001 HK$1=¥15.4) 3.
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