which is currently offered in 12 markets in the Asia/Oceania
region. The line is expected to bow in April 2014 with plans to
be offered in 250 doors by the end of 2014, 650 doors in 2015,
and expansion plans in place to reach over 1,700 doors by 2018.
The global Shiseido brand has been present in the market since
2001 through a local distributor focusing on the prestige segment
and will remain under the stewardship of the company. Prior to
this latest announcement, Shiseido had focused marketing efforts toward India’s prestige segment. In 2001, it launched the
global Shiseido brand in India through local distributor Baccarose
Perfumes & Beauty Products Pvt. Ltd. Currently available at approximately 30 high-end department stores, the brand has recorded steady sales performance. In 2002, Shiseido launched
Issey Miyake and other designer fragrances produced by its
wholly-owned French subsidiary Beauté Prestige International
(hereafter BPI) via Baccarose. The fragrances are currently available at some 120 stores across India.
According to a study carried out by Shiseido in 2011, the
masstige market is eight times larger than the prestige market in
which Shiseido currently operates. Therefore, to strategically expand its presence and better serve the profile of the local market,
Shiseido established a representative office in Mumbai in 2011,
carrying out marketing surveys and research into consumer habits and preferences.
Shiseido aims to become “a global player representing Asia,
with its origins in Japan.” The ratio of its overseas sales has
reached 44.9% in the most recently concluded fiscal year, bringing the near-term goal of 50% within reach. With the establishment of the Indian subsidiary, Shiseido has commenced direct
investment in each of the BRIC (Brazil, Russia, India and China)
markets. To pursue its steady growth strategy, the company intends to maintain its active investment not only in established
markets but also in emerging markets as well.
7. Beiersdorf GERMANY
SALES: $6.6 BILLION
Key Personnel: Stefan F. Heidenreich, chief executive officer;
Peter Feld, executive board member, Europe/North America;
Ralph Gusko, executive board member, consumer brands, pharmacy, research and development; Ulrich Schmidt, executive board
member, finance, supply chain, human resources, Latin America.
Major Products: Skin care brands include Nivea, Eucerin and
New Products: Nivea—Powerfruit and Pure Impact shower
skin care to account
for nearly half of
growth in the global
products, Pure & Sensitive and Stress Protect deodorants, In-Shower
Body Milk; Eucerin—Even Brighter and DermoCapillaire;
LaPrairie—Skin Caviar Liquid Lift and Cellular Power Charge Night.
Comments: Beiersdorf executives are seeing blue—thanks
to the Blue Agenda that was introduced last year. It called for
strengthening brands (especially Nivea), increasing innovation
and expanding in emerging markets. That’s because the company
estimates that skin care will drive the global cosmetics market
during the next few years, accounting for 45% of growth.
To boost innovation, during the past year, R&D efforts were
realigned to more closely match consumer expectations in the
areas of body, face, sun, men, deo and shower. The goal is to develop innovative products that quickly meet consumers’ needs. To
help meet the needs of folks in emerging markets, Beiersdorf began construction of a new production center in Silao, Mexico that
will speed products to market and bundle resources in a single
location. The site, which will cost more than € 100 million, is expected to open next year. Finally, to increase efficiency and speed,
Beiersdorf encourages and requires employees to think and act
like entrepreneurs and to take a decisive approach.
The Blue Agenda worked, as corporate sales rose more than
7% last year to nearly $8 billion and consumer product sales were
up nearly 5%. Sales of Nivea rose 6.4% on higher demand for
Nivea Deo, Body and Shower products. Products that provided a
lift included Invisible for Black & White, and the launches of Pure
& Sensitive, Repair & Care and In Shower. Eucerin sales rose 6.6%
thanks to the launches of Even Brighter and DermoCapillaire and
good gains in Chile, Thailand and Sweden. Sales of La Prairie
rose 6.1% due to gains in China, France and the US.
By region, European sales rose 1.4%. Although sales in
Germany were flat and sales in western Europe fell nearly 2%,
sales in Eastern Europe jumped 8.7% with good gains in Russia,
Poland, Ukraine and Serbia.
Sales in the Americas rose more than 12%, driven by a 17.7%