THE WHAT? Shiseido is looking to acquire skincare brands as a way to diversity its offering outside of China, according to a report by the FT.
THE DETAILS The Japanese beauty giant has had a ‘radical restructuring’ of its assets following the pandemic and is set to be preparing for a boost thanks to the predicted return of Chinese tourists to Japan next year.
However, the company is now bolstering acquisition prospects in the U.S. and Europe, as well as eyeing new buys in India and Africa once COVID-19 is under control in these regions.
THE WHY? Speaking in an FT interview, Shiseido CEO Masahiko Uotani stated that while rising consumption and growth of the middle class will continue to drive sales in China, the company is also looking to diversify as a contingency plan.
He said, “We believe the longer-term potential is extremely high in China and we will firmly capture this opportunity. But as our dependence increases, there will be questions on contingency and portfolio management, so we want to strengthen our efforts even further in the US and Europe.
“We are exploring mergers and acquisitions so that we can respond to every kind of skincare need.”
Shiseido is also set to invest further in digital technology and data analysis in order to capitalize on the growth of the wellness market as a result of the pandemic.