China has regained its title as the largest market for Japanese beauty care brand Shiseido with 26.4% market share, according to the group’s performance report for the first half of 2023 (January to June) released on 8 August.
Despite reporting an operating loss of 3.9 billion Japanese Yen (27.20 million USD) in China in 2022, marking the first loss for the Shiseido group in the Chinese market since 2017, China became Shiseido’s biggest global market in 2022. The country contributed 24.2% to the group’s overall sales last year, with net sales exceeding 115.66 billion Japanese Yen (approximately 806.60 million USD), surpassing its home market Japan.
Shares in the core market dipped to 22.2% in the first quarter of 2023, with sales in the region sliding 3% to 53.2 billion Yen (371.01 million USD), placing China second after Japan where the brand’s sales grew by 8% to 61.68 billion Yen (430.15 million USD) during the reporting period.
Apart from Shiseido, CPB (Clé de Peau Beauté) and NARS under Shiseido Americas also appears to be a growth engine for the group. NARS came out on top following this year’s 618 pre-sales on Tmall, having only made the top 10 for the first time during last year’s 618. The brand’s presales hit 14 million RMB (1.9 million USD) during the promotional season.
While the second-largest mid-year online shopping festival 618 partly contributed to the bounce back, the company also attributes the growth to its “strategy transformation” in the market, which sees a shift from a growth model centred around large-scale promotions to a sustainable growth model based on consumer-driven products and conveying brand value.
Confirming that efforts will be continued in strengthening the group’s omnichannel development in the region, it signalled “Clean, Dermatology, and Inner Beauty” as the brand’s next focuses for both China and the global business, aligning with the consumer-demand-oriented growth strategy.