Indonesia could be the next big market for beauty companies and Shiseido is staking a claim in the country by forming 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.
"We are truly grateful for the contributions Sinar Mas, the most powerful business partner in Indonesia, has made in developing the Shiseido group brands," said Shiseido's President and CEO Masahiko Uotani. "With these new joint efforts, we will start a new era of the Shiseido group brands to bring an even stronger value to customers in Indonesia."
According to Shiseido, 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. In the Indonesian market, which offers high growth potential, Shiseido will strive to boost sales not only by continuing to foster its Shiseido global brand promoted around the world, but also by stepping up focus on the masstige market.
More info: Shiseido, www.shiseido.com