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4-Traders Homepage  >  Equities  >  Tokyo  >  Shiseido Company, Limited    4911   JP3351600006

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Shiseido Co. Ltd. : Shiseido to launch Za, a Global-Mega Brand, in the Japanese market [ PDF:68.4KB ]

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06/21/2012 | 04:15am CET

June 2012

Shiseido to launch Za, a Global-Mega Brand, in the Japanese market

Starting September 2012, Shiseido Company, Limited will launch Za (pronounced "zee-ei") in the Japanese market. Za is a skincare and makeup brand currently offered in the Asian market for women in their 20s as one of the Global Mega-Brands strategically launched in markets around the globe. The Za lineup to be offered in Japan will comprise 54 types of 19 cosmetics items, retailing at prices ranging between 630 yen and 1,260 yen. Shiseido has been marketing Za products in eight countries and regions, positioning Za as a "masstige"* brand. Going forward, Japan will be positioned as an integral part of the Asian market for "masstige" brands. In its first fiscal year of launch in Japan, Za will be rolled out at around 300 variety and other stores. Za products will be manufactured at Shiseido's factories in Vietnam and Taiwan and imported by Etwas Co., Ltd. and marketed by Et tu sais Co., Ltd., both wholly owned subsidiaries of Shiseido.
*"Masstige" is a word coined from "mass" and "prestige." A "masstige" brand is positioned as a brand that is on a higher end compared with brands for mass-produced products, but is less expensive than prestige brands.
Background to the launch
Under its ongoing three-year plan (Fiscal 2011 to 2013), Shiseido upholds four growth strategies with the aim of stimulating the domestic market and accelerating globalization. One of them is the Global Mega-Brand Strategy aimed at fostering focal brands in predefined cross-regional markets by making prioritized investment in terms of manpower, marketing, and other management resources. Under this strategy, the lower-end Japanese market and the masstige market of other Asian regions are regarded as one large monolithic market. Taking advantage of the economy of scale that can be enjoyed in this monolithic market, Shiseido will strive to promote its three masstige brands, namely, Za, SENKA, and TSUBAKI, to achieve growth and profitability. By adding Japan to its Asian market for Za, Shiseido seeks to reinforce its capacity to meet lower-end demand in Japan, acquire new customers, and boost sales.
Za as a masstige brand
The Za brand, which does not piggyback on the Shiseido name, was first launched in 1997 as a strategic brand targeting the expanding middle-income population. Currently, the brand is a comprehensive skincare
and makeup brand and is positioned as a masstige brand. Za products are self-marketed at retail prices of around US$10, mainly at drugstores in China (including Hong Kong), Taiwan, Thailand, Vietnam, Singapore, Malaysia, Indonesia, and New Zealand. The total number of stores that carry Za products currently exceeds 6,000.
Regional marketing activities for the Japan launch
In launching Za in Japan, items that are popular in the current Za markets will be selected for promotion at the usual Za store spaces. In addition, fixtures will be installed for special sales promotion and advertisements will be placed on public transport for promotion among its targeted customers. Jun Hasegawa (Japanese), Davika Hoorne (Thai), and Emma Pei (Chinese), who currently model for Za, will also be featured in advertisements for the Japanese market to promote the type of beauty that can be acquired by using Za products.
Za display rack in Thailand

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EBIT 2017 64 000 M
Net income 2017 23 055 M
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Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 4 718  JPY
Spread / Average Target -9,3%
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NameTitle
Masahiko Uotani Chairman, President & Chief Executive Officer
Norio Tadakawa CFO & Head-Corporate Administration
Youichi Shimatani Managing Executive Officer, General Manager-R&D
Masaya Hosaka Corporate Officer-Technology & Engineering
Mitsuru Kameyama Global-Information & Communication Technology
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