Japanese cosmetics giant Shiseido has announced plans for a Middle East division based in Dubai as it aims to capitalise on the region’s “market potential”.
Shiseido Middle East FZCO will be established in partnership with local company Creation Alexandre Miya Paris Limited, which is owned by the Kotovsky family and has been the Middle distributor for the brand since 1997.
In a statement, Shiseido said it would import and market products under its brand in seven Middle East countries—Bahrain, Jordan, Kuwait, Oman, Saudi Arabia, Qatar, and UAE.
The joint venture will start operations in January 2014, with Shiseido International Europe S.A., Shiseido’s wholly owned subsidiary in France, and Creation to hold equity shares of 51 percent and 49 percent respectively.
“In light of the region’s high market potential underpinned by its large population that includes many affluent consumers, Shiseido has been examining the possibility of direct investment with the aim of further enhancing its market presence,” it said in the statement.
“This has resulted in the establishment of the joint venture with its partner, Creation, which is not only equipped with the expertise for selling skincare-centered high-end cosmetics products and a good relationship with the retail sector, but is also well versed in Arab business practices.”
Business operations in the seven countries will continue to be undertaken by Creation until December 31, 2013 when Shiseido Middle East, the new joint venture, will take over.
“In the early stages, Shiseido Middle East will focus on disseminating the global brand Shiseido across the region to reinforce the business base,” it said. “In the future, we will examine the feasibility of handling brands or lines that Shiseido currently carries.”