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Showing posts with label Estee Lauder. Show all posts
Showing posts with label Estee Lauder. Show all posts

Saturday, November 19, 2005

Shiseido, the first to set up counter at Department Store in Asia

Shiseido is the largest beauty and cosmetic company in Japan and it rank No 5 in the world largest beauty and cosmetic company. After Loreal,Unilevel,P&G and Estee Lauder.

Shiseido, Loreal and Estee Lauder is consider the only three focus company in top 10 beauty and cosmetic company in the world. Others like Unilevel and P&G is diversified company in other industry as well, like food and detergent.

Loreal and Estee Lauder acquired a lot of brand over the years. However, to maintain each individual brand is an expensive process. Each brand must have achieve a critical mas and economic of scale to cover cost of spoke person, R&D, cost of international channel.

Unilevel and P&G has start streamlining their brand over the years and only maintain their first and second brand in each category.

Shiseido also face the problem of too much secondary brand.Which face difficulty in resources allocation. A lot of brand unable to recoup the resources invested.

Thus, Shiseido plan to streamline it brand from 140 to 35 (Like Za, Uno and Fitit) at the end of 2005. This will further reduce to 20.

Loreal, however view that if you have 5 or 6 brand in each channel , you may have problem of too many brand and overlap in investment. But if you only have 2 brand, it is insufficient. Loreal now have 4 brand (L'Oreal Professional, Redken, Matrix and Kerastase) under it haircare professional product.It is function much better than only have 2 brand (L'Oreal Professional and Kerastase)previously.

Taiwan Sofnon chairman,Champion Huang which own several international brand like New York Alway Black , German Nobori, low cost product for teenages JUSTa100 ,Japanese herb PLUS+ , and Italy in Ocean said that Shiseido is the first company that market their product via professional counter in Department Store. This is a one of the Japanese marketing and management method.

In Malaysia, Shiseido is distributed by Tung Pau, a wholly own subsidiary of Warisan TC Holdings Bhd previously.

Warisan TC Holdings Bhd, a company under Tan Chong Group, which distribute Japan Nissan car in Malaysia. Their connection build up with Japanese during they become distributor of Nissan vehicle enable them to secure a franchise of Shiseido in Malaysia.

With globalization and liberalization of trade. A lot of automobile company take back the distribution right like Honda.

Beauty and cosmetic company Shiseido also doing the same. Shiseido Malaysia Sdn Bhd, a 50-50 joint-venture company between the Shiseido group and Warisan TC Holdings Bhd set up to handle the distribution of Malaysia since April 2005. Thus, now the distribution of Shiseido in Malaysia is operate by Japanese despite Warisan TC Holdings Bhd still half 50% shares.

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Wednesday, November 16, 2005

Estee Lauder largest focus beauty & cosmetic company control by US

Estee Lauder (1907-2004) invented her first product Super Rich All-Purpose Cream at the age of 18. She market her products via conducting party among housewife at the initial stage but her product available for sales in Department store not long after that. She is the first person market her product by giving sample set in the beauty and cosmetic industry.

However, her product unable to affect the dominant position of Helena Rubinstein (HR) and Elizabeth Arden at that point of time, until she launch her first Fragrance, Youth Dew in 1953. Youth Dew fragrance lifted Estee Lauder to become one of the leading brand name in beauty and cosmetic industry in US.

Estee Lauder launch another star product Clinique in 1967. Clinique signify that it is a product that would not cause sensitive reaction from skin.

Like Loreal, Estee Lauder also growth via merger and acquisition. It has acquired a lot of brand over the year. Among them include Stila, Aramis, Prescriptives, Origins, M.A.C., Bobbi Brown, Tommy Hiltiger, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, kate spade beauty, Darphin, Michael Kors and Rodan + Fields.

Estee Lauder now is the largest focus (not divesified like P&G) beauty & cosmetic company control by American (Loreal control by French)

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