Shiseido cuts the ribbon on Japanese factory – its first domestic expansion in 36 years

Shiseido cuts the ribbon on Japanese factory – its first domestic expansion in 36 years

THE WHAT? Shiseido has cut the ribbon on its first new Japanese manufacturing facility in 36 years, according to a report published by the Business Times.

THE DETAILS The Otawara plant is designed to increase domestic capacity as demand for Made in Japan products booms.

“We are focusing on prestige, premium brands,” Masahiko Uotani, Shiseido CEO told AFP, per Business Times. “Consumers in those categories see the value of Japanese culture. So strategically, we are telling consumers: those brands are from Japan, it’s Japanese R&D. And that is becoming a very important competitive value.”

Two further factories are planned for Japan by 2022, at a cost of ¥120 billion.

THE WHY? The J-beauty giant has expanded domestic capacity as inbound tourism grows and interest in J-beauty reaches feverpitch, especially with the 2020 Olympic Games on the horizon. What’s more, local production has become more profitable as the yen has dropped in value.

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