Shiseido to Introduce Corporate Culture and Promote Sales at Event in Russia

From March 1 to March 20, 2011 Shiseido will hold the “Shiseido Exhibition/1872-2011/Empire of Beauty” in the arcade of GUM, the landmark in front of Red Square that is Moscow’s largest department store and an attraction for tourists worldwide as well as Russian customers. The event space is nearly 90 meters long, and the showcase will allow visitors to witness Shiseido’s history and aesthetic sensibility through exhibits of an array of products, posters and other items introducing Shiseido’s corporate culture. Moreover, a sales promotion corner will offer trials of skincare products from the global brand SHISEIDO premium cosmetics lineup. This initiative advances Shiseido’s aims to further enhance its presence while continuing to successfully expand its business in the Russian market.

Overview of Shiseido’s Business in Russia

Shiseido is focusing on expanding sales in emerging markets with the aim of becoming “a global player representing Asia with its origins in Japan.” The Company considers Russia a particularly promising market and after commencing sales there through a distributor in 1999, established Shiseido (RUS), LLC (hereinafter, “Shiseido Russia”) in 2007 as a wholly owned subsidiary commencing direct operations in 2008. Subsequently, the Russian market became a model of growth in emerging markets.

In terms of its sales strategy, Shiseido has been promoting initiatives to expand business partners and the number of stores handling Shiseido products, centered on Russia’s major cosmetics specialty chain stores, which have grown significantly by approximately threefold to about 900 stores as of the end of December 2010 compared with the previous fiscal year. Specifically, sales of global brand SHISEIDO skincare products ranked second in December 2010 in the skincare category at L’Etoile, the largest cosmetics specialty chain store based in Moscow. Global brand SHISEIDO is thereby steadily building its position in parallel with major brands in Europe and the United States.

Sales in existing stores have also achieved double-digit growth versus the previous year due to emphasis on increasing the number of Beauty Consultants (BCs) and better consultation capabilities embodying Omotenashi (spirit of hospitality).

Overview of Shiseido Exhibition/1872-2011/Empire of Beauty

The arcade of GUM department store boasts a total length of approximately 200 meters. Shiseido will divide roughly 90 meters of the arcade space into five zones and exhibit about 120 items including products, advertising posters and BCs’ uniforms that date back to Shiseido’s foundation in 1872. Visitors can walk through the arcade as if they are window shopping to learn about Shiseido’s 139 years of history, corporate culture and aesthetic sensibility up to the present. A promotion corner featuring various items including skin diagnostic equipment will let visitors experience Shiseido products.

Name Shiseido Exhibition/1872-2011/Empire of Beauty
Period March 1-20, 2011 (20 days); 10:00 am -10:00 pm
Location Exhibition detail
Arcade of GUM department store in Moscow, Russia 【Exhibition detail】Comprised of five zones: 1) Shiseido’s Founding Spirit, 2) Rich, 3) Human Science, 4) Omotenashi (spirit of hospitality) and 5) Power of Design. Following these exhibitions, visitors can go to a consultation corner with skin diagnostic equipment, where Shiseido BCs provide consultation. In conjunction with this event, BCs from Japan will visit Russia to conduct consultation together with Russian BCs.

Shiseido (RUS), LLC

1) Company name: Shiseido (RUS), LLC
2) Location: Moscow, Russia
3) Representative: Ms. Tatiana Volodina, General Director
4) Main business: Import and sales of cosmetics products in Russian Federation
5) Capital: RUB 106.2 million (wholly owned subsidiary of Shiseido International Europe S.A.)