Shiseido : Notice on Ending Za Sales and Subsidiary Dissolution in India ［ PDF : 82KB ］
November 17, 2015 at 01:08 am EST
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(Translation)
Dear Sirs and Madams,
November 17, 2015
Name of Company:
Shiseido Company, Limited
Name of Representative:
Masahiko Uotani President and CEO (Representative Director)
(Code No. 4911; The First Section of the Tokyo Stock Exchange)
Contact:
Tetsuaki Shiraiwa
General Manager of Investor Relations Department
(Tel: +81-3-3572-5111)
Notice on Ending Za Sales and Subsidiary Dissolution in India
It is hereby notified that Shiseido has determined to discontinue the sales of Za, mid-to-low-price skin care and makeup brand, and dissolve Shiseido India Private Limited that is importing and selling Za in India. Shiseido will focus on developing and reinforcing its prestige brands in India.
Reasons for ending Za sales and subsidiary dissolution in India
Since March 2001, Shiseido has worked with Baccarose Perfumes & Beauty Products Pvt. Ltd., a local agency in India, to promote the SHISEIDO brand through prestige channels mainly at department stores. In July 2013, Shiseido India Private Limited was established to attract the rapidly expanding middle-income group in India, and started to sell Za brand products in April 2014.
Za brand have been on the market for a year and half. Unfortunately, the business results have been falling short of the initial plan, as the investments in store counters and in marketing, including investment such as counseling services, have increased more than expected.
Shiseido decided to stop selling Za brand products by the end of 2015 in India, as it would take extended time to make Za profitable. As a result of this decision, Shiseido India Private Limited, in charge of importing and selling Za brand products, will be dissolved.
The Indian market is still a promising market, and Shiseido keeps developing and reinforcing the SHISEIDO brand through prestige channels.
Summary of Shiseido India Private Limited:
(1)
Company name
Shiseido India Private Limited
(2)
Location
Mumbai, Maharashtra, India
(3)
Representative's name
Mamoru Watanabe
(4)
Content of business
Import and sales of cosmetics
(5)
Capital
556 million Indian rupees
(6)
Establishment
July 4, 2013
(7)
Principle shareholder
and shareholding ratio
100% owned by Shiseido Company, Limited
Schedule
Shiseido India Private Limited will be dissolved according to local laws and regulations, and the liquidation will be completed after the required procedures are taken.
Future prospects
The effect of this issue on our consolidated business results for the fiscal year ending December 2015 will be minor.
Shiseido Company, Limited specializes in the design, manufacturing and marketing of cosmetics. The group offers beauty products (including makeup items, coloring, etc. ; Shiseido, Aupr's, DQ, Za, Revital Granas, B?n?fique, Maquillage and Elixir), skin care products (skin creams, bath and shower gels, shampoos, etc. ; Aqua Label, Integrate, Tsubaki and Uno), perfumes (Issey Miyake, narciso Rodriguez, Elis Saab and Azzedine Ala?a) as well as professional products (Joico, Decl?or and Carita).
Net sales are distributed geographically as follows: Japan (32.9%), China (25.6%), Asia and Oceania (6.4%), Europe/Middle East/Africa (10.3%), Americas (9.9%) and other (14.9%).
SHISEIDO COMPANY, LIMITED 
