Through this acquisition, Henkel positive factors entry to Sheiseido’s licensed professional haircare, hair styling, and hair colouring manufacturers. Credit: TungCheung / Shutterstock.com
Henkel, a German shopper items and chemical compounds conglomerate, accomplished the acquisition of the Shiseido Professional’s retailers in Malaysia and Taiwan on 1 January 2023. With this, Henkel has accomplished the acquisition of Shiseido Professional within the Asia-Pacific area. Shiseido will, nonetheless, retain 20% of the Shiseido Professional enterprise in Japan. The divestment is a win-win situation, permitting Shiseido to focus on its core skincare enterprise, and Henkel to cement its maintain over the main world professional haircare markets, Japan and China, and the fast-emerging Southeast Asian market.
Shiseido Professional, a premium salon-only model of the Japanese multinational cosmetics heavyweight Shiseido, has a presence in 120 international locations. Henkel signed an settlement to purchase Shiseido Professional in February 2022, and had accomplished acquisitions in China, Japan, Singapore, South Korea, and Thailand by July 2022. With the ultimate step of the acquisition accomplished, Shiseido joins Schwarzkopf Professional, Authentic Beauty Concept, Bonacure, and Igora Royal in Henkel’s Professional Hair Care enterprise division, which reportedly generates annual revenues of over $1bn. The Professional Hair Care, Laundry and Home Care, and Beauty Care divisions have been merged into a single enterprise unit, Henkel Consumer Brands, in early 2023.
With the lifting of most Covid-19 restrictions throughout Asia, shopper spending on haircare is on the rise. As customers return to their workplaces and academic establishments, they’re receiving professional hair remedies in salons and visiting hairdressers extra usually to enhance their private look. The excessive spending on haircare is corroborated by the findings of GlobalData’s This fall 2022 shopper survey, whereby 29% of Chinese respondents and 33% of Thai respondents reported fairly/very excessive spending on hair care merchandise*. GlobalData forecasts the estimated $32bn Asian haircare sector will develop by over 3% CAGR over 2022-26, making it a profitable interval to enter the market.
Through this acquisition, Henkel positive factors entry to Sheiseido’s licensed professional haircare, hair styling, and hair colouring manufacturers, together with Sublimic and Primience. Henkel can thereby leverage the strengths of its German Beauty (G-Beauty) manufacturers, and Shiseido’s Japanese Beauty (J-beauty) manufacturers. Through this strategic acquisition, Henkel positive factors a foothold in a difficult Asian professional hair care market, which is fragmented and dominated by native gamers comparable to Shiseido. Henkel’s Schwarzkopf Professional has been met with restricted success within the area to date. Therefore, the corporate can exploit Shiseido Professional’s well-established model presence and distribution community to promote its Schwarzkopf Professional model in salons and hairdressers throughout Asia.
Henkel additionally plans to set up a J-beauty innovation hub in Tokyo, Japan, to supply new elements and develop new customised formulations for Asian customers for the Shiseido Professional and Schwarzkopf Professional manufacturers. Henkel will collaborate with Shiseido, with the latter retaining 20% of the Shiseido Professional enterprise in Japan, gaining extra advantages in information sharing and joint analysis and improvement.
* GlobalData This fall 2022 Consumer Survey—Asia Pacific, printed in November 2022
^ GlobalData Consumer Intelligence Center–Market Analyzers, accessed in January 2023
https://information.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vd3d3LnJldGFpbC1pbnNpZ2h0LW5ldHdvcmsuY29tL2NvbW1lbnQvaGVua2VsLWJ1eXMtc2hpc2VpZG8tYXNpYW4taGFpcmNhcmUv0gEA?oc=5
