Shiseido enters high growth Eastern European markets

The company is already well established in Europe where high sales growth has offset sluggish figures in the domestic Japanese market in recent quarters. Sales in Europe increased 21 per cent to ¥67.38bn (€0.43bn) for the nine months ending December 31, compared to 3.7 per cent growth to ¥536.73bn for the firm as a whole. Romania and Bulgaria​ Shiseido plans to build on its success in Europe by entering the cosmetics markets in Romania and Bulgaria. Both countries became members of the EU in January 2007 and have enjoyed high economic growth after adopting a free market approach in the post-Soviet era. With more money in their pockets people have starting looking for high quality cosmetics and international firms have willingly responded to their desires. In Romania the market for prestige cosmetics is especially dynamic as international brands sweep in accompanied by large retailers such as Sephora. Consequently, Shiseido intends to make the country a priority with plans afoot to introduce its products into 40 stores by 2010. The cosmetics market in Bulgaria is also growing at double-digit rates but because few large retailers are operating there Shiseido plans to sell its products in only 15 stores by 2010. Marketing strategy​ In terms of its marketing strategy in the two countries, Shiseido will target high-income earners and promote the quality of its brands and customer service. It will sell ten cosmetic lines that are already being marketed worldwide including Shiseido The Skincare and Shiseido The Makeup. The company's fully owned subsidiary Shiseido Europe has concluded a distribution deal with Slovenia-based Everet to sell these products in Romania and Bulgaria. Shiseido claimed Everet has an outstanding track record as an import and sales agent for prestige cosmetics in Eastern Europe.