Shiseido, Intimate Brands Form Joint Venture

In a move that unites east with west, Shiseido and Intimate Brands have agreed to set up a joint venture initially worth $9 million to create a total beauty line that will function as a sister division to Intimate Brands’ Victoria’s Secret Beauty brand. The line will comprise a full beauty line including skin care, hair care, body care and color cosmetics and will be sold in its own stores and through its own website. In addition to the $5 million Shiseido is investing this year, Intimate Brands will add up to $10 million next year and up to $50 million next year. Coupled with Shiseido’s matching fund, the total investment of the venture will eventually amount to $100 million, the amount needed to build a $1 billion business, according to company executives. Under the terms of the agreement, Intimate Brands will own 50.1% of the venture while Shiseido will own 49.1%. It will be led by Robin Burns of Intimate Brands.