China Business

Accelerating Sales
and Profit Growth through Made-in-Japan Brands

2019 Results

Net Sales Net Sales
Operating Profit Operating Profit
Operating Margin Operating Margin

2019 Review

Despite a difficult market environment in Hong Kong in the second half, demand for beauty products in China overall continued to be high.

Amid this environment, we maintained high sales growth for prestige brands such as SHISEIDO, Clé de Peau Beauté, IPSA, and NARS. Additionally, the made-in-Japan cosmetics ELIXIR and ANESSA realized significant growth. The share of prestige brands in our total China sales increased even further from the previous fiscal year, showcasing the major success of our “Prestige First” strategy.

For e-commerce sales channels, which have been growing at a remarkable pace, we actively promoted efforts such as digital marketing and strengthening our collaboration with key digital players in the country, achieving substantial growth for the China Business.

In particular, amid fiercely competitive conditions, we maintained high-level growth on Singles’ Day, or “Double 11,” a Chinese shopping holiday that has been increasing in scale in recent years, due in part to the strong performance of exclusive online products.

SHISEIDO campaign listed on TMALL for the “Double 11” shopping festival
SHISEIDO campaign listed on TMALL for the “Double 11” shopping festival
Made-in-Japan brand ELIXIR
Made-in-Japan brand ELIXIR

Key Strategies

To secure a high level of sales growth, we will concentrate investments primarily on prestige brands such as SHISEIDO and Clé de Peau Beauté as well as on the made-in-Japan brands ELIXIR and ANESSA. Also, while working to enhance our offline channels, we will strengthen our digital marketing activities and further reinforce e-commerce.