The Japanese cosmetics company Shiseido has rejuvenated its brand to make products more accessible to young customers, particularly millennials who have strong purchasing power.
Yoshiaki Okabe, chief brand officer for Shiseido, said during a visit to Thailand on Friday that since 2016 Shiseido has modernised its brand and changed the product formula and packaging, focusing on makeup products to captivate young customers.
“We foresee huge growth potential in Southeast Asia and came up with an ambitious plan for Thailand for 2018-20," Mr Okabe said.
In a move to reach young customers, the company on Friday also launched the Princess Hanayaka Collection, the first collaboration between Shiseido and Sirivannavari.
HRH Princess Sirivannavari Nariratana is in charge of every design step, from meticulously selecting the colour schemes and different shades for the beauty products to designing the packaging.
The Shiseido x Sirivannavari collection consists of eye, cheek and lip products priced 2,500-3,500 baht. Products are available at 40 select Shiseido counters nationwide. This limited edition collection will be available for 2-3 months.
Shiseido Thailand recently increased focus on makeup products to include the younger generation. With the makeup line, customers aged below 30 could become 40% of the total Shiseido portfolio, up from 30% in 2016.
"Thai consumers are becoming extremely diverse, particularly in terms of their shopping habits," Mr Nagao said. "We will focus on two business pillars, consumer-centrism and brand relevance."
The company will also focus on personalisation of the business and accelerating omnichannels. To access younger buyers, the company plans to open the first Shiseido free-standing store at Siam Center by the middle of this month.
Sales of the Shiseido makeup line represent almost 20% of Shiseido Thailand’s sales, up from just 8% in the past few years.
“With the extension of the makeup line and bringing new brands, we expect Thailand to continue strong growth and be the key sales contributor to Shiseido globally and the role model of Shiseido in Asean," Mr Nagao said.
The beauty market in the Asia-Pacific region is expected to reach US$60 billion (1.97 trillion baht) by 2020. In 2016, Thailand’s beauty market was worth $4.8 billion and about 20% was held by prestige beauty brands. Shiseido is the market leader in Thailand’s prestige beauty brand.
Jean Philippe Charrier, president and chief executive of Shiseido Asia-Pacific, said Thailand is an important market for Shiseido.
"Thailand is one of the fastest-growing markets in Southeast Asia, along with Vietnam and Indonesia," Mr Charrier said, adding that the company has huge growth in the region and in Thailand because of the growing middle class.