[Reference]

Shiseido to Deploy THE HAIR CARE ADENOVITAL SCALP ESSENCE in Asia
Advanced Scalp Essence Exclusively for Hair Salons Records
Sales of Over 700,000 Units in Japan

Shiseido Co., Ltd. is set to expand THE HAIR CARE ADENOVITAL SCALP ESSENCE hereinafter, “ADENOVITAL”; 180ml; suggested retail price in Japan: ¥6,000) in the Asian market through the Professional Business Operations Division. THE HAIR CAREpremium hair care brand has been sold exclusively at select hair salons in Japan. ADENOVITALbecame a major hit product achieving sales (shipment) of more than 700,000 units* as of the end of January 2012. In the hair salon industry, a product is usually considered a hit when annual sales reach 300,000 units.

In terms of deployment in Asia, ADENOVITALwill be introduced consecutively in five countries and regions, beginning with Thailand in March 2012 followed by Hong Kong, Taiwan, Malaysia and Singapore. The product will be handled at carefully selected luxury hair salons, targeting 1,500 stores during the initial year and aiming to expand to 5,000 stores by fiscal 2013.

* Number of products on a shipment basis, including 180ml product and 480ml refill product for professional use

Expansion of Hair Growth Market for Women in Japan
Research conducted regarding hair concerns of women in their 20s to 50s revealed a marked tendency for women in their 40s and older regarding concerns about changes that are mainly attributable to aging such as “having gray hair,” “hair losing resilience and strength” and “thinning hair.” (Survey by Shiseido Professional.; N=121; see page 3 for reference)
Additionally, according to an awareness survey conducted on women’s hair care, results obtained showed that needs for scalp care are growing significantly. In view of this, the market of hair growth agents such as a scalp essence for women is anticipated to expand steadily in response to the aforementioned concerns due to aging. (Needs for scalp care doubled over the course of a three-year period, increasing from 8% in 2007 to 12% in 2008 and 17% in 2009.) (Shiseido customer survey 2010 (n=360))

ADENOVITAL
Scalp Essence Exclusively for Hair Salons a Major Hit
The Shiseido Research Center has been engaged in hair research since the launch of Flowlinehair tonic in 1915. As a product formulated with Adenosine*, an in vivosubstance that exists in the human body originally discovered by the Shiseido Research Center over the course of 15 years, and other ingredients such as Japanese and Chinese medical herb ingredients for nurturing beautiful hair, ADENOVITAL was launched in Japan from February 2011 as a product of THE HAIR CAREbrand.

As for product sales, activities are being focused on conveying product value, including instructions for use, with a primary emphasis on hair stylist counseling. Although it was initially introduced at approximately 5,000, salons handling the product have currently expanded by six-fold to approximately 31,000 salons thanks to word of mouth of regular users and other support.

* Adenosine directly works on dermal hair papilla to activate a growth promoting factor essential for hair growth.

Strengthening Asian Market through the Introduction of ADENOVITAL
Among the mainstream Asian market of women with black hair, women in their 40s and older have common concerns about hair.

Shiseido conducted research regarding hair and scalp concerns targeting women in the four cities of Tokyo, Shanghai, Chengdu and Bangkok. As a result, there was a marked tendency found in women in their 40s and older in which many of them commented that they have “gray hair,” their “hair is losing resilience and strength” and their “hair is thinning.” (Shiseido global customer survey 2010; n=821)

Consequently, in order to propose scalp care that addresses these concerns, THE HAIR CARE ADENOVITAL
SCALP ESSENCE, which is gaining high recognition in Japan, will be introduced at this time in the Asian market as a strategic product, thereby seeking to strengthen and nurture the market. Additionally, as follow-up to ADENOVITAL, plans regarding future development call for pursuing expansion and enhancement of THE HAIR CAREproduct categories as the core brand in the overall Asian market.

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