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2006 early in the Shiseido Co., Ltd., the new president before the new fields on a visit to China a few weeks ago, a subsidiary of Shiseido’s Shiseido carrying drugs for their dry skin problems Fei Luze well-known brands to come to China, the first Stationed at drug store makeup. Prior to this, in the field of cosmetic medicine sales for the French cosmetics group L’Oreal Vichy, France, as well as the rationale skin Stephen Yang Ya, and so on.
2006 years 7 24, the Nihon Keizai Shimbun reported: Shiseido will be closed in Shanghai 3 Revitalizing space Direct cosmetics store. For a specific date: Shanghai’s Nanjing West Road in the Direct Store on July 25 officially closed shop in Beijing and Hangzhou will store on September 10 and close on September 25. The reason is these stores to complete their mission of the Model Shop , Beijing and Hangzhou, two shops lease contract has just expired. Shiseido to close the stores at the same time, Shiseido officials said that by the end of 2005, Shiseido cosmetics store has reached 1009, signed by the end of 2006 to 1700 to reach stores, and its goal is to reach 2008 The scale of 5000, an average of more than 10 million urban population owns a store sign. Shiseido strategic overview
channels
time now, Shiseido in the Chinese market four side channel attack strategy has been fully apparent:
one of the city continue to adhere to the high-end market share with the maintenance, protection of high-end department store counter competition Power;
Second, to uphold the second, three-tier market goes down, in order to store signing in the form of mass-market coverage;
three, entered the market in line with Watson, a thousand color shops, Mannings, Sifu Lan represented by the individual Care and cosmetic products chain;
IV into drug store makeup, opening up new sales cosmetics market. These directions, most rely heavily on Shiseido is the second, three-tier market goes down, to develop store signing.
This strategy changes, began in September 25, 2003, Shiseido China issued the market strategy, scheduled to set up the whole of China cosmetics store. In the same year on September 26, with an area of 110 square meters of shops on the 1st Direct Shiseido Energizing space opened in Shanghai, Nanjing West Road, which opened a store Shiseido prelude to the battle.
2004 year, Shiseido full investment in Shanghai 3,500,000,000 yen (about RMB 220,000,000) to set up Shiseido (Investment) Co., Ltd. China, is responsible for signing the main store channels. Before that, Shiseido has all along adhered to first-line department store counter market channels. In February 2002 before Shiseido has set up 20 offices in China and in 80 large and medium-sized cities in 270 shopping centers to set up a special counter sales accounted for Shiseido China market turnover of more than 90% Weight. Shiseido
channel analysis of the reasons for change
signing of the so-called specialty, the industry is different from the familiar pattern of Avon store, which is established by the Shiseido cosmetics company choose to franchise stores to cooperate in the shop to set up a special counter sales of Shiseido products . These shops bring products to the shopping malls before the counter can not be covered by small and medium-sized cities.
2003, Shiseido began to Zhejiang from the pilot, the first phase out of more than 30 stores in Zhejiang Province and then to the opening 60, then a province, a province of promotion, distribution, Shiseido is currently in the country , Have signed contracts with more than 1,400 such stores. According to the plan, signed in 2008 that these stores will spring up all over China, to 5000. Shiseido
Why should vigorously develop signing this store? From the following analysis:
a first-line growth market, increasing competition, Shiseido need to find a new growth point. 11 years
1991, and Beijing Shiseido Liyuan’s the conclusion of the contract to set up a joint venture, Sino-foreign joint Shiseido Liyuan Cosmetics Co., Ltd. was founded, Shiseido launched into the Chinese market. After a two-year comprehensive and in-depth market investigation, Shiseido established the first department store counter market-oriented channel model, and proposed a high-quality, high-service, high-image of the three highs marketing strategy In the future for a long period of time, Shiseido has achieved great success in 2005, Shiseido China market sales of 1.1 billion. However, with the other multinational companies continue to enter China’s urban front line of international brands have increased the number and increasing competition. In this World War II cosmetics brand, as early as Shiseido to those who have not made it so satisfied with the results. In 2005, P & G’s sales to 150 billion yuan, while L’Oreal sales reached 3.5 billion. It is clear that Shiseido and its competitors, there are obvious gaps, but the special counter to the existing channels can not let Shiseido in a short period of time to catch up with competitors. Moreover, if the Shiseido counter aggressive online, not only could lead to the weakening value of the brand, positioning fuzzy, and consumers may lead to misunderstanding and operation of the danger of falling, so Shiseido only first-line consolidation of the city’s special Market, in the hope that at the same time maintain a stable growth. Shiseido will stick to the city’s first-line counter market at the same time, it is also necessary to find a Shiseido has the potential to bring tremendous growth in the growth, second and third line on the market has become a possibility.
Second, China’s economic development and enhance the purchasing power of the second and third line market, consumer demand for international brands has become reality and urgency so that the sinking Shiseido channel strategy to be implemented in a timely manner.
most of the Chinese population live in the second and third line market, which determines a large consumer base. In the early years, due to the unbalanced economic development, low purchasing power of the market, second and third line, brand awareness is not strong, which is pre-Shiseido stick to the important reason for first-line market. However, China’s rapid economic development over the years, coupled with the huge population base, second and third line for the market has accumulated huge purchasing power. With the development of the economy, consumer spending habits began to change in the purchasing power of the rising international demand for well-known brands increasingly urgent. In fact, the discovery of such a change is not just cosmetic companies, other industries are also keen to seize that opportunity. If the fast food giant Kentucky Fried Chicken and McDonald’s prior agreement to the second and third line network market development, that is proof. Therefore, Shiseido’s channel strategy has been to sink a scientific basis for the consumer. In the first-line market growth, second and third line market has become a new growth opportunity.
three, Shiseido need to compete in a timely manner to seize opportunity to attack competitors.
second and third line for the coveted market is not a Shiseido, L’Oreal, for example in recent years have begun to implement strategies to sink channels. By the end of 2003 and early 2004, L’Oreal second and third line domestic market will be one of the two well-known brand nurse and Yue-Sai capsule income, while gains were the two major brands owned by an alarming number of second and third line of the terminal market Network (such as small nurse has nearly 280,000 sales terminals). L’Oreal brand in the completion of the layout, more use of L’Oreal Paris, small nurses, Garnier, Maybelline cover second and third line cities and popular channels, and even plans to include these products to the barber shop, beauty and the The retail end. Therefore, Shiseido need to compete in a timely manner to seize the opportunity to catch up with L’Oreal, and so on the one hand, a strong opponent, on the other hand, in order to effectively attack the other competitors for their market expansion in the second and third line to set up a security barrier. Well, apart from the opportunity to buy local brands, second and third line to actively expand the market network of terminals, based on the best tactics for defense.
four, the proliferation of parallel imports has greatly damaged the Shiseido brand reputation, if the genuine will of the most widely distributed in the second and third line market, will effectively safeguard the Shiseido brand.
Shiseido brand in the maintenance of the sales do not always adhere to the brand – if a product to break into new markets such products in new markets in the consumer group at more than a share of only products in China and India Shiseido’s trademarks; Shiseido alone never participate in any discount at the mall, such as integration, promotion must be arrangements for the implementation of the unified headquarters; in the pricing of products, strictly regulate the development of the retail price system, is prohibited from Informal channels of purchase, but they can not prevent parallel imports in the Chinese market, Shiseido’s spread. Maeda in the new during his visit to China has said that 10 years ago, parallel imports Shiseido has already begun by China’s coastal cities spread to the nation, now on the market Shiseido parallel with the real goods as much as the ratio of 30:1. In that case, and in addition to China’s Intellectual Property Department, administrative law enforcement departments to jointly crack down on parallel imports, second and third line directly into the market of cosmetics stores (in fact there is a large part of that parallel those inside the store sales) to allow consumers to easily Shiseido’s cheap to buy real goods, parallel imports would be the best means of attack. Five
, Shiseido in Japan from 1923 to the beginning of specialty organizations, to date in 2005 has grown to more than 20,000, Shiseido China in the implementation of market channels to sink strategy can Japan’s successful experience and effective copy . On the one hand, Shiseido of Japan have signed a mature operation of the store experience, you can get a good Chinese market compared with the reference test so as to avoid blind operation. On the other hand, China’s economy and the development of the market to a certain extent with the substituting two to three decades of the last century in Japan is quite similar to, or in a more or less the same stage of development of the market, the same pattern of greater chance of success.
Shiseido Shiseido
analysis of the development of the channel’s objectives are: in 2008 China is expected to reach the market performance of 200,000,000,000 yen, which 50% performance from the store sign. At present, Shiseido channel sink strategy is still facing a number of risks.
Shiseido has been referred to the four could face the risk: low-grade brand, the management system confusion down the quality of human resources, a reduction in the level. Indeed, this is the expansion of Shiseido in the second and third line must be taken into the market, but the performance of a variety of Shiseido, Shiseido also seems to be trying to avoid these risks.
a new brand to join the protection of the original consumer interests, but also to protect the original brand, which has played a strong brand Shiseido hatched in effect
brand to consider, Shiseido skin key to the CPB , And Shiseido Oupo Lai remain on the market’s first department store sales counters, these avoid the dislocation of the brand; store for signing, mainly to provide mooring the United States, Za, Levin and death in low-end products such as the brand . Such a distinction, to avoid their own brand of fuzzy positioning and cut-throat competition, but also to protect the interests of consumers of the original, to maintain their loyalty. In addition, Shiseido rely on the strong brand tree, you can hatch more new brands, so as to meet the demand for more types of terminals. Although the Shiseido brand, said to be thin , but the huge number of brands to meet different consumers, on the basis of the needs of a variety of channels, but also the courage to implement the signed Shiseido store security strategy.
II, stationed in cosmetics franchise stores, cosmetics stores not only leverage the resources of all kinds of high-quality, but also to highlight their own brand of cosmetics
general store will open in the second and third line the bustling market or the pedestrian mall, has a good geographical location, Flow of people, but also have a strong ability to purchase, consumers rely on the comparison shopping cosmetics terminals. Therefore, Shiseido signed co-operation with these stores, cosmetics stores to effectively leverage existing resources to high-quality, to avoid spending time and money to collect and access to these resources (whether or self-help open new investors), Be able to avoid these high-quality resources have become the object of direct competitors, is threefold.
At the same time, stores are operated by domestic brands, as a well-known international brands of Shiseido’s presence, not only can help enhance the image of the store, but also be able to make the Shiseido brand and other brands to form a strong contrast to attract consumers And the attention of the purchase. The so-called a crane standing among chickens, will be able to effectively opened Shiseido and other brands of distance. Therefore, although we can not protect the store from the signing of its external image of a unified security question, but a store shop the way, unified image of the specialty store’s Shiseido also be able to guarantee the basic image of unity and recognition of consumers, but also be able to save a large number of The money and time.
three for the signing of the stores to provide support, including image management, advertising and education, thus contributing to the store on the operating level, Shiseido close cooperation with partners, but also highlighted the professional quality of the Shiseido brand and image
such as Shiseido will be signed for the PM to provide goods store display units, such as counter-propaganda image of the items on display; season will be released in accordance with the integrated brand Shi policy manual, a year at the spring, summer, autumn and winter 4, including Shi policy Program activities, introduce new products, seasonal products, and focuses on the recommendation of the attention, Shih specific list of policy programs, cosmetics section, display counters, shop sales, and so on the progress of management, marketing strategy for the implementation of the terminal clear guidance so that operators in the The implementation of brand strategy is more focused; efforts to improve the quality of first-line beauty consultants, and Japan’s dispatch of a senior BC (beauty consultant) to store on-site teaching, terminal security professional guide, professional and science and so on.
2006 years 3 months, with Shiseido Hisense Network Technology Corporation signed an agreement on the two sides over the next three years strategic cooperation agreement to provide more than 100,000,000 yuan Hisense’s information system as a means to secure effective control Shiseido The future development of the huge network of terminals, to avoid chain-go system, and out of control.
is every indication that preparations for Shiseido has been a long time and are determined in the vast Chinese market to catch up in order to achieve Shiseido’s global strategy. Signed store model can help to achieve their global strategy, Shiseido is not conclusive, but competitors from other channels is a strategy worthy of Chinese brands and companies to draw on. Of course, Shiseido’s brand as much , parallel imports as much as well as the people’s national sentiment, and Shiseido are bold move in the Chinese market must pay attention to at all times.