Shiseido’s New Brand Debuts in the Chinese Market!

In half a year two new brands have been launched in a row, and the 150 year old Shiseido has more surprises.

On June 1 Shiseido Group launched a new luxury hybrid skincare brand SIDEKICK, specially designed for Asian Gen Z men. The Tmall flagship store has begun trial operation, and the full range of products is synchronized with Japan and is available in a limited offering.

Shiseido China told Cosmetic Business Online (CBO) reporters that the brand will be officially entering the Chinese market on July 1. “Relying on the Group’s strong R&D innovation and brand management strength, the establishment of SIDEKICK will further strengthen the Group's brand matrix, accelerate the development of potential markets, and lay a solid foundation for the Group's sustainable growth.”

01

High Quality Premium Hybrid Men's Skincare Brand Targeting Gen Z

Shiseido China told Cosmetic Business Online (CBO) reporter that as a high-quality ‘hybrid’ men’s skin care brand originating from Japan, SIDEKICK provides a series of innovative products covering four categories, such as cleanser, moisturizing lotion, cream, and mask, to meet the consumer needs of the young generation of consumers to express themselves and highlight their unique personalities.

“SIDEKICK is based on the brand’s core value of ‘hybrid’ that combines two different elements to create new value. SIDEKICK products are formulated by combining natural ingredients with cutting-edge skincare technology, which addresses complicated skincare needs in just a few simple steps. Not only can it improve the specific skin troubles of young men of Asian Generation Z in the short term, such as oily skin, enlarged pores, rough skin, dull skin, redness, etc.; after continuous use, it can also improve the skin’s own barrier function and achieve the compound skin care effect of ‘instant calibration’ and ‘long-term stabilization’.” Shiseido China said.

The SIDEKICK brand expresses its radical dynamic worldview, innovating products by combining existing luxury goods with the unique personality of the individual, defining it as the "new luxury".

“SIDEKICK is not only a ‘friend’ in supporting gen Z men’s daily skincare routines, but also a ‘pioneer’; always inspiring those who give everything in their personal and professional lives, and supporting them to express their individuality.”

Shiseido said that the launch of the SIDEKICK brand in China in July will be another important measure for Shiseido China in the field of "Premium Skin Beauty".

In the future Shiseido China will continue to take the four major strategies as the core, give full play to the advantages of the world’s second headquarters, continuously introduce new products, new brands and new technologies, and continue to lead the steady growth of the Group. Shiseido stressed that as the largest overseas market for the Shiseido Group, Shiseido China is continuing to consolidate its market position in the four strategic directions of Premium Skin Beauty, accelerating digital transformation, optimizing the cost structure, and creating social value.

The Mob Research Institute, a data-based research consulting agency, has pointed out that the male beauty market has exceeded 18 billion yuan in 2021. It should be noted that even with the rapid development of the men's skin care field, the market globally is attracting a number of men's skin care and makeup brands to join the game, and capital is also pouring in. However, in the field of high-end skin care there is no men's skin care brand that particularly attracts the attention of the market.

Shiseido’s SIDEKICK entered the men's high-end field at this time, obviously prepared.

02

Accelerate To Become The “World’s No. 1 Skin Beauty Company”

2022 marks the 150th anniversary of the Shiseido Group and a year of returning to growth track in the Group's medium and long term business strategy “WIN2023 and Beyond”.

According to the cosmetics giant's 2021 financial report, Shiseido achieved sales of 1,035.1 billion yen (about 57.1 billion yuan), an increase of 12.4% year over year. Operating profit reached 41.6 billion yen (about 2.3 billion yuan), an increase of 177.9% year over year. Net profit attributable to owners of parent company turned from loss to profit, turning from a loss of 11.7 billion yen (about 650 million yuan) in 2021 to a profit of 42.4 billion yen (about 2.3 billion yuan).

In releasing its full-year performance results Shiseido described the year as a “challenging” year, especially as the “WIN 2023 and Beyond” strategy was proposed and advanced, marking the beginning of Shiseido’s long-term strategic shift and setting “premium skin beauty” as its core business.

In 2021 the company sold its personal care business as well as three makeup brands (BareMinerals, Buxom and Laura Mercier) and terminated its global licensing agreement with Dolce & Gabbana to better focus on this strategy.

Shiseido said that the Group will focus on the new business structure with the skin beauty field as the core, continue to expand the skin beauty care brands, and strive to become the world's No. 1 skin beauty company by 2030.

The launch of the new brand SIDEKICK is another important addition to the Group's men's skincare field. Relying on the Group's strong R&D innovation and brand management strength, the establishment of SIDEKICK will further strengthen the brand matrix, accelerate the development of potential markets, and lay a solid foundation for the Group's sustainable growth.

After the pandemic, Shiseido is accelerating the adjustment of the portfolio of beauty brands, and according to the plans released by Shiseido these adjustments will focus on major skincare brands such as Shiseido, CPB, and ISPA. In addition, Shiseido is increasing its investment in innovative categories such as beauty equipment, CleanBeauty, and beauty supplements. These strategies gave birth to Baum, beauty supplement INRYU, and beauty equipment brand EFFECTIM.

Just two months ago Shiseido further expanded its brand and product portfolio with the launch of clean beauty brand Ulé, joining the group’s “Clean and Sustainable Beauty” category with Drunk Elephant and BAUM. In Shiseido's description, the European-born brand aims to expand its skincare and beauty segment to 75% of its sales by 2022.

As for Baum, another new sustainability-focused skincare brand launched by Shiseido in May last year, Shiseido said Baum is focused on “the power of trees” in all aspects of its products, packaging and stores. Baum's range is based on three key characteristics in trees: water storage, growth, and environmental protection. Approximately 90% of the product formulations are derived from nature and blended with natural fragrances that are mainly derived from trees.

Based on a strong business portfolio we will continue to innovate. Skin beauty brands, which accounted for 64 percent of last year's sales, will grow to 75 percent or nearly 80 percent, which will have a positive impact on earnings.” Shiseido Group CEO Masahiko Uotani said. “Baum is one of the brands that will play a key role in Shiseido’s plans to improve profitability in China.”

Kentaro Fujiwara, President of Shiseido China, said “We will incorporate this and sustainability into our marketing, and in the near future it will gain significant importance in brand value. Specifically, our R&D team in China will publish information about efficacy and formulations, conduct a series of activities, and foster a culture to enhance Baum's brand value.”