Shiseido Co. Ltd. said Monday it has formed a retail joint venture with Japanese personal-care products companies Unicharm Corp. and Lion Corp. to maintain retail sales, develop sales areas and analyze sales data. Shiseido is tweaking its retail structure at a time when Japanese retail sales are coming under pressure as consumers cut back on their spending.
Under the terms of the deal, Shiseido’s wholly owned Japan Retail Innovation Co. Ltd. subsidiary will see its shareholding structure change. Shiseido will retain 60 percent of the company while Unicharm and Lion will each own 20 percent. Shiseido did not disclose financial details of the transaction but said its impact on its performance for the year is minor.
“Going forward, the display and store maintenance operations for products that the three companies handle will be expanded, and each company’s knowledge regarding the in-store merchandising aspects of retail marketing will be shared among the three,” Shiseido said, adding that the three companies produce complementary product ranges.
As reported last week, Japanese retail sales fell 2.1 percent in August in year-on-year terms, marking their six straight month of contraction, according to data from Japan’s Ministry of Economy, Trade and Industry. Typhoons and the fact that there was one fewer weekend day compared with the same month last year, hit sales at Japanese retailers.