The deal will see Shiseido sell its 51% share in the Turkish operation, relinquishing the role of importer and distributor of its brand products in the Republic of Turkey.
It will also sign an agreement with Vepa, and the new subsidiary, Vepa Perakende Kozmetik Anonim Şirketi, which will take over import and sales responsibility.
According to the Japanese company, the deal is all part of its medium-to-long term strategy, Vision 2020, announced in December 2014, which has seen Shiseido bolster its collaboration with overseas partners already, in order to tap in to local knowledge of regional cosmetics markets as it looks to increase market share.
A busy year…
As part of these efforts, earlier this year the company sold all its shareholding in its Greek subsidiary to Folli-Follie, a player with strong sales and marketing capabilities in Greece, and entered into a distributor agreement with the subsidiary.
This was followed three months later by the decision to concentrate on its prestige business in India by terminating sales of low- and medium-price brand Za, and stepping up collaboration with distributor Baccarose Perfumes & Beauty Products Pvt. Ltd.
So attention has now turned to the prestige market in Turkey, identifying Vepa as the best placed company in this sector to help further enhance the brand under the rapidly changing business environment in the country.
Shiseido identifies the Republic of Turkey as one of the promising markets for its brand when seen from a long-term perspective and states it will work towards sustainable growth and further strengthening of the brand in Turkey by collaborating with Vepa, which has a strong sales and marketing capability in the prestige market.
The deal takes effect from the start of the year, and Shiseido says that the effect of this issue on the consolidated business results of the Shiseido Group for the December period in 2015 will be minor.