Another Well-known Brand of Shiseido into Wuhan High-end Mall
- Chaileedo Press
- Jul 6, 2022
- 3 min read
Shiseido's luxury skincare brand THE GINZA, the first store in the Central of China, will be located in Wushang Plaza and will open on July 9, China Standard Time.
In January, THE GINZA's boutique opened on the basement of Deji Plaza, which is the brand's first store in Jiangsu. In the same month, the first store of THE GINZA in South China was opened in the mixc, Shenzhen. This is a reflection of the popularity of high-end care brands in the offline market.
THE GINZA, one of the highest-end skincare brands of the Shiseido Group, officially entered the Chinese market in 2021. The brand currently has three boutiques and two counters in Shanghai, Beijing, Nanjing and Shenzhen.
With consumers' brand pursuit and scene aesthetics getting higher and higher, the business in each city has also been upgraded in the past five years. Until 2020, Wuhan's business status has been in a dominant position and its business aesthetics are in a disadvantageous position among cities of the same level. As a regional commercial leader, Wushang Plaza's cosmetics sales reached $134.3 million in 2019. The number of brands with the performance of over $1.5 million in 2018 reached 28 out of 60 cosmetic brands in Wushang Plaza. Among them, Estee Lauder, Lancôme's performance reached more than $12 million. Dior's performance reached more than $9 million. Chanel's performance achieved more than $7.5 million. La Mer's performance achieved more than $6 million. SK-II, YSL, and Shiseido's performance achieved more than $4.5 million. Whoo, Armani, Kiehl's, CPB, Clarins and other brands' performance reached more than $3 million. Moreover, in the introduction of new brands, Tom Ford broke $1.5 million in sales opening the counter four months. ALBION, Filorga and COVERMARK and so on had a good performance in 2018.
For its parent company Shiseido, in terms of its first-quarter earnings report released in May, the Chinese market became its biggest market in terms of fluctuation. During the reporting period, the Shiseido Group reported its net sales of $1.73 billion, down 1.3% year-on-year. Its operating profit reached $34.5 million and the net profit attributable to the parent company reached 4.399 billion yen (about 232 million yuan). By region, from January to March this year, China became the market with the largest decline in sales for the Shiseido Group worldwide, down 20.6%, surpassing the decline in the same period in 2020 when the epidemic broke out, which is the largest decline for Shiseido China in at least the last six years. Shiseido had just achieved the fastest global growth rate of 46% in China compared to the same period of last year.
For Shiseido, the Chinese market is as important as the Japanese market. In the first quarter of this year, Shiseido's China performance accounted for 22.2%, compared to 24.4% in Japan. The gap between the two was further widened. From its entry into China in 1981 to the establishment of its first R&D center in China in 2001 and China becoming Shiseido's largest overseas market since 2017, Shiseido has been deeply involved in the Chinese market.
In May this year, Shiseido's first special investment fund in China with a registered capital of over $74.6 million - Ziyue Fund - was officially landed. It was revealed that this fund would focus on investment opportunities in innovative brands in the Chinese beauty and health frontier markets and upstream and downstream related technology service companies. So despite the temporary difficulties in China revenue, Shiseido continues to release positive signals in the Chinese market from recent market actions.
In addition, Shiseido's new luxury men's skincare brand designed for Asian "Generation Z" men will make its global debut at this year's Consumer Expo, and high-end perfume and makeup brand Serge Lutens will also make its debut at the China International Consumer Products Expo. Moreover, a number of bombshell beauty black technology will also make an appearance at the Expo. SHISEIDO, CPB, THE GINZA, NARS, IPSA, ELIXIR, DRUNK ELEPHANT and other brands will also bring new products.
Combined with Shiseido's recent actions in China, it is easy to see that the choice of THE GINZA to be in Wushang Plaza is also a side affirmation of the Chinese market. As the largest overseas market of Shiseido Group, Shiseido has also said that it would continue to give full play to the advantages of Oriental beauty experts to meet the needs of people's
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