by Global Cosmetics Industry
In mid-January 2022, Shiseido decided to sell two of its brands, Za and Pure&Mild, to a beauty brand management group. The deal is expected to close this year. So far, in more than a year, Shiseido has sold 15 mass and cosmetics brands, which further signals that Shiseido is concentrating on more prestige and premium business segments.
The Japanese giant attributed its business growth in China to its high-end brands’ growth, according to its annual financial report for 2021. During Singles’ Day in November 2021 in China, its prestige segment grew 1.5x. Brands with the most improved rankings included Shiseido, Clé de Peau Beauté and Nars.
Just before the COVID-19 pandemic started, China’s demand for luxury beauty had been on the rise. According to CBN Data’s statistics, the sales scale of high-end beauty reached 151.8 billion RMB ($24 billion) in 2019, accounting for 51% of total cosmetics retail sales, with market share surpassing that of mass beauty for the first time.