As part of the deal, Shiseido has sold all the shares of the Group’s Greek subsidiary, Shiseido Hellas, to the Athens-based firm, with the transfer going through on July 31 and the name has now been changed to Selective Cosmetics Hellas.
Shiseido also concluded a distributor contract, which is for importing and selling the global brand Shiseido in Greece, with the SCH which is now affiliated with Folli-Follie.
Cracking prestige market
The Tokyo-headquartered firm says it hopes the deal will further enhance the brand toward the sustainable growth in Greece by establishing the collaboration structure with Folli-Follie which has strong sales and marketing capabilities in the Greek prestige market, having operated a jewellery business as well as department stores, fragrance agencies, etc. in the country.
“Shiseido has been promoting the reform of business structure all over the world as part of the medium-to-long term strategy ‘Vision 2020’ which was announced at the end of last year,” the company says as a reason for the sale.
“In order to further enhance the brand as part of this reform of business structure under the rapidly changing business environment in Greece, we reached the decision that the best measure is to make efforts by affiliating with the Folli-Follie which has full knowledge of the local prestige market as well as powerful sales capabilities.”
Short term pain, long term gain…
Due to the deal, Shiseido does stand to lose a substantial amount, with the specific amount and currently being examined.
However, the company says that although a temporary loss will occur, “this business structure change through the transfer of the subsidiary's shares will contribute to the increase in Shiseido's business profitability in Greece and other neighbouring countries.”