Shiseido, the renowned Japanese cosmetics conglomerate, has announced a new three-year global strategic partnership with Tencent, a prominent internet and technology company, through its China subsidiary. The primary goal of this collaboration is to develop a direct-to-consumer (D2C) model and strengthen Shiseido’s social commerce business specifically for Chinese consumers worldwide. As Tencent operates WeChat, which boasts approximately 1.3 billion monthly active users, the company is the largest social media operator in China, making it an invaluable partner for Shiseido’s digital expansion and transformation.

This partnership is a significant step for Shiseido in enhancing its digital presence in China by leveraging Tencent’s extensive user base and expertise in the realm of social media. The collaboration aims to boost Shiseido’s social commerce business and offer customers a more digitized and personalized beauty experience. By tapping into Tencent’s digital capabilities, Shiseido plans to expedite its overall digital transformation and drive global growth.

The announcement follows Shiseido’s commendable performance, with a 14 percent increase in net sales during the nine-month period concluding on September 30. This growth primarily resulted from the company’s strong presence in the Americas, EMEA, and travel retail sectors, despite a decline in consumer traffic in the Japanese cosmetics market due to the pandemic. Shiseido’s China business also faced challenges from temporary retail closures and reduced consumer traffic.

Shiseido’s partnership with Tencent forms a crucial component of its strategy to navigate the evolving digital landscape, especially in the Chinese market. Through collaboration with Tencent, Shiseido aims to harness the immense potential of social commerce and digitalization to effectively reach and engage Chinese consumers on a larger scale. This partnership serves as a means for Shiseido to solidify its position as a prominent player in the global beauty industry.

Over the next three years, this partnership will enable Shiseido to capitalize on Tencent’s extensive reach and technological capabilities to expand its D2C model while enhancing its social commerce offerings. This collaboration will facilitate the creation of a seamless and personalized beauty experience tailored to the evolving needs and preferences of Chinese consumers.

Tencent’s involvement in this partnership holds immense promise for Shiseido, as it stands as the largest social media operator in China. With its vast user base and profound digital expertise, Tencent can provide valuable insights and platforms to drive Shiseido’s digital transformation. The synergy between the two companies will contribute to the development of innovative solutions that bridge the gap between beauty and technology, ultimately enhancing the overall customer experience.

In conclusion, Shiseido’s strategic partnership with Tencent signifies a crucial milestone in its digital journey. By joining forces with the leading social media operator in China, Shiseido aims to bolster its social commerce business and establish a formidable presence in the digital space. With Tencent’s support, Shiseido can harness the power of technology to revolutionize the beauty industry, offering Chinese consumers a more immersive and personalized beauty experience. This partnership aptly showcases Shiseido’s unwavering commitment to innovation and determination to remain at the forefront of the ever-changing beauty landscape.

Useful links:
1. Official Press Release
2. Tencent’s Announcement