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August
2007
Shiseido Targets China's
Middle Class With Off-Shelf Cosmetics
Shiseido Co. is revving up sales of off-the-shelf cosmetics in China in a
bid to tap the country's burgeoning middle class. Japan's largest
cosmetics maker plans to develop supermarket sales of its Aqua Label skin
care products, a mainstay brand in Japan that was recently launched in
China. The line is priced 30-50% cheaper than high-end products sold at
department stores through sales associates, a market that Shiseido leads
in China. Shiseido exports to China the same Aqua Label products it sells
in Japan, with the skin lotion priced at 108 yuan, or about 1,700 yen, and
the moisturizer at 118 yuan, or approximately 1,900 yen. The items are
currently being sold at 60 stores of Hong Kong-based drugstore chain
operator A.S. Watsons & Co. Shiseido plans to expand sales to major
supermarket chains operating in China, including those of French giant
Carrefour SA, and will also consider developing an exclusive brand for the
Chinese market. In the year ended March 2007, Shiseido saw sales in China
surge 42% to 44.4 billion yen. It plans to boost that amount 30% in the
current fiscal year. (The Nihon Keizai Shimbun, August 08, 2007)
August
2006
Cosmetics Firms Crafting
Non-Animal-Based Test To Meet EU Rule
The National Institute of Health Sciences and seven firms, including
Shiseido Co. and Kao Corp. seek to develop a practical version of an
expedited cosmetics allergen test that uses human cells instead of
laboratory animals. With the European Union restricting sales of
animal-tested cosmetics starting in March 2009, Japanese firms aim to
craft a testing method that meets international standards. Kanebo
Cosmetics Inc., Kose Corp., Nippon Menard Cosmetic Co., Pola Chemical
Industries Inc. and Lion Corp. are taking part in the initiative as well.
Shiseido and Kao co-developed the test's underlying process, which uses
human white blood cells to gauge allergic reactions. The cells are
combined with a cosmetic compound and a special reagent. Whether the
compound would cause an allergic reaction with the skin can be determined
by evaluating changes in the cell wall. Results are available in two days,
compared with the two months needed for tests using animals. The research
arms of the seven firms and others are currently verifying whether the
human-cell-based tests produce the same results as the animal tests. Fifty
types of allergens have already been screened. The EU is estimated to
account for slightly more than 30% of the global cosmetics market, or
roughly 6 trillion yen. A comprehensive ban on animal-tested cosmetics in
the region is slated to take effect in 2013. (The Nihon Keizai Shimbun,
August 25, 2006)

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