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Cobranding Example

In: Business and Management

Submitted By corollez
Words 2501
Pages 11
Shiseido has followed a strategy which is uncommon for Asian brands expanding beyond the region. Shiseido has used acquisitions as a main channel to gain a foothold in the crucial cosmetics markets of Europe and the
United States. As cosmetics is an industry driven by aspirations, lifestyle issues and images, Shiseido decided on the acquisition path to gain visibility, acceptance and access to established customer bases in new markets rather than spending years trying to establish the Shiseido brand from scratch.
In order to gain entry into the French and thus the European market,
Shiseido acquired the Carita brand and prestigious salon on the Faubourg St.
Honoré in Paris in 1981. The salon, with it distinguished and rich clientele of royalty and celebrities, commanded a unique position in the French market.
To gain entry into the North American market, Shiseido acquired Unilever’s
Helen Curtis in 1996.24 These acquisitions gave Shiseido an opportunity to build on something already strong in those markets.
Maintaining a strong brand architecture system
Managing the brand architecture could prove to be a challenging task for
Shiseido. Shiseido has been engaged in three main activities:
■ Acquisitions of brands in Europe and the US
■ Importing new non-Shiseido brands into Japan through the brand holding company
■ Introducing multiple brand extensions in the market.
Given the diverse market segments that Shiseido’s brand extensions serve, these brand extensions will obviously have their own brand image and personalities. Integrating them with the parent brand and managing their interactions with the parent brand will be challenging.
Finally, Jim Thompson has created a lifestyle concept centered around silk and contemporary designs. Although the company started out with silk fabrics, it has successfully expanded into home furnishings and even

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