Shiseido files suit against Chinese competitors

The Japan-based company's actions come at a time when the company is attempting to increase its worldwide presence, particularly in China and Asian markets.

Lawsuit against Chinese competition Shiseido has filed the suit in a Shanghai court and is accusing Shanghai Jingdian Cosmetics and two other companies of trademark infringements, according to the Japanese press.

The company is accusing its Chinese counterparts of selling cosmetics using trademarks such as 'Shidoas' that it says resemble too closely its own registered trademark.

Proceedings will open on Thursday and Shiseido is seeking damages of 1.89m yuan (€177,000), suspension of proceedings under the trademark and public apologies from three companies.

The company is currently in the throes of an extensive restructuring programme through which it hopes to become 'a global player that is representative of Asia with its roots in Japan'.

Last year's somewhat disappointing domestic performance was significantly boosted by strong results from North American, European and other Asian markets.

Chinese expansion for the company China sales have been growing at 30 per cent annually in local currency terms according to the company, and dedicated brands specifically aimed at Chinese consumers performed 'outstandingly' in the region over the year.

The company has concentrated on the market in the last year attempting to enter new retail channels, increase the number of sales points and increase sales in existing outlets.

Furthermore, the company has recently announced plans to open a facility in Vietnam and to end its dealings with the clothing market in order to further concentrate on cosmetics.

Within such a climate of expansion it is evidently in the interest of the company to protect its brands and products from any infringements of this kind.