Fusing western and Asian beauty: Henkel acquires Shiseido hair company
05 Jul 2022 --- Henkel has completed the acquisition of the professional hair business Shiseido Company, to further its understanding of Japanese beauty, hair and scalp care, anti-hair loss, styling and perm solutions. Shiseido will reportedly retain shares in Japan.
The companies believe that Shiseido’s continued ownership of a 20% stake in its legal body in Japan, where it is based, serves as evidence of the close cooperation between Henkel and Shiseido in fostering the expansion of the enterprise.
Henkel aims to grow Shiseido into a global expert in hair innovation and trends the same way it has done with Schwarzkopf Professional. On February 9, 2022, a contract was signed to buy the hair business.
Mixing the markets
Henkel says it has a clear ambition to grow the beauty care business in Asia-Pacific. “With this acquisition, we have a significantly stronger market position in Japan and China,” David Tung, regional president of consumer brands Asia at Henkel, elaborates.
Tung says bringing together the two brands creates a fusion between Western and Asian beauty.
“At the same time, we have been able to establish our presence in South Korea and a leading position in Thailand.”
“Bringing together these two brands creates an attractive portfolio and a fusion of Western and Asian beauty expertise, innovation and education under one roof. This enhances the value we offer to our hair salon partners and hairdressing community,” he asserts.
Shiseido’s notice of transfer explains that in Japan, it will expand the scale of operations and product development capabilities. This will lead to an overwhelming presence in the market.
The innovation hub
A Japanese beauty innovation hub will be established in Tokyo to create and develop goods specifically for Asian consumers. It will act as the foundation for developing new products and formulating ingredients, for example, for the Schwarzkopf and Shiseido Professional brands.
“We are building an innovation and growth platform to drive our hair professional business in Asia,” Tung says. Henkel hopes to increase their customer-centricity, speed to market and digitalization of the business with this new hub.
He further expresses that the hub will be the multi-cultural environment commercial globalization requires. “With people as a critical success factor, our priorities are to attract and retain the right talent, promote a diverse and inclusive culture and nurture an entrepreneurial spirit, which is much needed in an increasingly dynamic and fast-changing world.”
Edited by Mieke Meintjes
