TOKYO (Yosefardi) – Shiseido has concluded a joint venture agreement with PT Sinar Mas Tunggal, a group company of the Indonesian conglomerate, Sinar Mas Group.
Shiseido Co., Ltd. and the Sinar Mas Group will hold equity shares of 65% and 35%, respectively of the newly established PT Shiseido Cosmetics Indonesia. Business operations are scheduled to commence in July 2014.
Indonesia has the world’s fourth largest population of 244 million (2012), about 60% of which are under the age of 35. Notably, the younger population in urban areas is growing at a remarkable pace, generating anticipation for further growth in income and consumption.
The Indonesian market as a whole has achieved rapid recovery from historic economic downturns and the cosmetic market specifically has been growing at a robust annual rate of over 10%, which is projected to be sustained according to Shiseido’s estimates.
Shiseido initially launched sales activities in Indonesia in 1958. Since 1994, the Company has been steadily increasing sales by marketing its products through its distributor, PT Dian Tarunaguna, a Sinar Mas Group company.
Exploring the possibility of direct investment in the high-potential Indonesian market, Shiseido decided to establish the joint venture by taking the existing collaborative relationship with the Sinar Mas Group to new heights.
In Indonesia, in addition to its SHISEIDO global brand, Shiseido launched its highest-end brand clé de peau Beauté in 2010, available in prestige department store channels.
Going forward, the Company will not only reinforce its prestige product category, but also strengthen marketing efforts for the masstige segment with Za, a skincare and makeup masstige brand that targets Asian women in their 20s.