Japanese cosmetics giant Shiseido to launch its 3rd R&D center in China
TOKYO, NNA - Leading Japanese cosmetics maker Shiseido Co. will launch its third research and development center in China to seek collaboration with various potential partners for the development of environmentally-friendly cosmetic products.
The China Innovation Center will be set up in the Oriental Beauty Valley -- an industrial park of health and beauty businesses -- in the Fengxian District of Shanghai, Shiseido said in a statement released on Tuesday.
The company did not disclose details such as the timing of setting up the R&D center or the amount of its investment nor what cosmetics might be developed.
Shiseido will “collaborate with various companies and institutes” in the area “to drive the development of the cosmetics industry in China as well as to accelerate sustainable growth globally,” it added in the statement.
The Oriental Beauty Valley, which was established in 2015 and known as the “City of China’s Cosmetics,” comprises a wide range of companies and talents and is expected to become a center for the health and beauty industries worldwide, Shiseido said.
Shiseido already has two cosmetic R&D centers in Beijing and Shanghai, which focus on the development of cosmetics for local consumers. It also launched the China Business Innovation & Investment Representative Office in Shanghai in 2019 to seek collaboration with local companies to meet China market trends, a spokeswoman at Shiseido told NNA on Thursday.
China is a pillar for the Japanese company that has expanded into the global markets, and the country generated about 19 percent of Shiseido’s total revenue of about 1.13 trillion yen ($10.4 billion) in 2019, following Japan’s 40 percent, according to its earnings report released on Feb. 6.
The China revenue of 216.2 billion yen last year is up 13.3 percent from a year earlier, while Japan’s revenue edged down 0.6 percent to 451.5 billion yen during the same period. Well-received Japanese-made cosmetics sold through local e-commerce sites contributed to the heathy Chinese business, according to the report.