Shiseido Invests $74 Million in Setting up a Company in China
- Chaileedo Press
- May 11, 2022
- 3 min read
On May 10 Shiseido China sponsored an investment enterprise with registered capital of 501 million yuan(about $74.5 million). Moreover, Chinese and foreign top cosmetics companies such as L'Oreal, Unilever Group, and Beiersdorf Group have extended their investment in the Chinese market.
On May 10, Shiseido (China) Investment Co., Ltd. sponsored an investment enterprise Xiamen Ziyue Equity Investment Partnership (Limited Partnership) with an investment ratio of about 98%.
Xiamen Ziyue Equity Investment Partnership (Limited Partnership) was established on May 10, 2022, with a registered capital of 501 million yuan(about $74.5 million), and its business scope includes engaging in equity investment, investment management, asset management, and other activities with private equity funds. The company is owned by Shiseido (China) Investment Company Limited, Shiseido Ziyue (Shanghai) Management Consulting Company Limited, and Ningbo Boyu Jinghua Investment Management Company Limited with approximately 98%, 1.8%, and 0.2% respectively.
Regarding the newly established Xiamen Ziyue, Shiseido said, "The recently established and completed Xiamen Ziyue Equity Investment Partnership is the entity company of the Ziyue Equity previously launched by Shiseido China in cooperation with Boyu Investment, which focuses on investment opportunities in emerging brands in beauty, health and other frontier markets and upstream and downstream related technology service companies. "
Shiseido (China) Investment Co., Ltd. was established on December 24, 2003, with registered capital of $73.65 million, and its business scope includes food business (sale of prepackaged food), health food sales, import and export of goods, etc. The company is 100% owned by Shiseido Company. The company has five foreign investment enterprises including Shiseido Liyuan Cosmetics Co., Ltd.
In fact, the Shiseido Group's increased investment in the Chinese market has long been in evidence. As early as 2019, the Shiseido Group established an innovation investment office in China.
When the establishment of Ziyue Equity in August 2021, Zhou Taosheng also said publicly, "Ziyue Equity will focus on emerging brands in some segments with growth potential in the Chinese beauty market, such as medical beauty, oral beauty, and so on. At the same time, the fund will also consider investing in companies in the direction of technology services, such as social media, etc. Shiseido hopes to cooperate with these technology companies to jointly incubate beauty brands."
On March 3 this year, Shiseido announced an investment in Chinese beauty technology company Perfect Corp located in Taiwan to further develop its digital beauty segment. According to media reports, the deal is expected to close in the third quarter of 2022. Another media report stated, "Perfect Corp is valued at over $951.7 million and will go public in the U.S. in the 3rd quarter of this year."
It is no surprise that Shiseido continues to deepen its investment in China. According to public information, in 2021, Shiseido's sales in China were $2.25 billion, up 16.5% year-on-year. At the same time, China's share of the Shiseido Group's overall results also increased from 19.1% in 2019 to 25.6% in 2020. In 2021, this share was further increased to 26.6%. China remains the largest overseas market for the Shiseido Group, and the Chinese market has become almost equal to the share of the Shiseido Group's sales in Japan itself.
In addition to Shiseido, many beauty giants also continue to be optimistic about the Chinese market.
On the 8th of this month, the first investment company set up by L'Oreal in China - was Shanghai Meicifang Investment Co.
Fabrice MEGARBANE, President of L'Oréal North Asia Zone and CEO of L'Oréal China, highlighted the strategic importance of China for the L'Oréal Group, which has proven over 25 years in China to be a key growth engine for the Group and a unique location for technological innovation. In L'Oreal's 25th year in China, it brought Open Innovation investment to China, demonstrating its commitment to the Chinese market and its determination to further enhance and empower China's innovation ecosystem, accelerating open innovation and results translation in China. "
It is worth noting that according to L'Oréal Group's financial report for the first quarter of 2022, L'Oréal achieved a 13.5% year-on-year growth in global sales during the period with sales recording $9.53 billion, a growth rate of nearly five years, and a 19% increase in consolidated statements. In China, L'Oréal continued to achieve double-digit growth.
Also according to incomplete statistics, currently Unilever Group, Beiersdorf Group, LAF, Bloomage Biotech, PROYA, and other Chinese and foreign top cosmetics companies have opened their extended investments in the Chinese market. It is worth noting that these beauty companies have a very broad investment surface covering cosmetic upstream raw material companies, industry-related technology companies, and operating companies.
The strong vitality and market potential of the Chinese beauty market have attracted international giants to regard the Chinese market as a "must-have place", which is of great importance.
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