Shiseido teams up with Tencent
Japanese cosmetics conglomerate Shiseido has announced a three-year global strategic partnership with internet and technology company Tencent through its China subsidiary.
As part of the partnership, Shiseido will work with Tencent to build a D2C model and strengthen its social commerce business to the benefit of Chinese consumers globally. Tencent will help strengthen its global growth by accelerating its group-wide digital transformation and enhancing its digital capabilities.
The partnership is part of larger plans to boost Shiseido's presence in the digital space in China. Tencent, who runs WeChat with approximately 1.3 billion monthly active users, is the largest social media operator in China, which will further evolve Shiseido’s social commerce business, and digitalized beauty experience.
Last month, Shiseido announced a 14 percent jump in net sales, for the nine-month period ended September 30. Net sales totalled 745.37 billion yen (US$6.5 billion) driven by growth in Americas, EMEA, and travel retail.
Still, in the Japan cosmetics market, consumer traffic decreased as a result of the pandemic. The China business was also affected by partial retail closures and a drop in consumer traffic.
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