Chinese cosmetics company Shiseido announced that it is preparing for the adverse effects of the pandemic in the European and American markets. It announced that the expansion of the pandemic to these economies would adversely affect the company's original plans. It also announced that it is expecting declines in these markets in the coming months, but remains optimistic about China's economic recovery.
According to the president and chief executive officer of Shiseido Masahiko Uotani, the spread of the pandemic in American and European countries would adversely affect the company's existing plans for the market. During a shareholders meeting, Uotani claimed that the economic effects of the pandemic would have a significant effect on the business including the loss of consumer demand. The said loss was attributed to the lockdown impositions in these countries that would generate lesser business activity in its stores overseas.
He also added that Shiseido is deeply concerned with the maintenance of its manufacturing and supply chain issues that would result from the lockdowns. He said that those conducted in Japan and China remain manageable. However, he claimed that those in European and American countries are its biggest concerns.
It was revealed that the company has experienced recovery in China where 90 percent of its business partners have resumed operations after restrictions were imposed by the government earlier this year.
Uotani suggested that the unwavering e-commerce business in China has contributed to the significant growth of the Chinese market driven by higher demands of products via online shopping. He announced during the meeting that products and sales for the brand continue to grow in the country due to online purchases.
Shiseido partnered with Southeast Asian e-commerce platform Shoppee to propel the growth of its Japanese beauty products in Asia. The company would use Shoppee's user base and market knowledge to drive greater online presence and accessibility for its consumers.
On top of the announcements, Uotani also claimed that there are more key initiatives that the company could impose to prevent significant declines in the American and European markets. He said that it would continue its support for medium-sized partners such as specialty stores by allowing delayed payments of its acquired products and services.
It was also revealed that marketing activities would be diminished in these markets as the pandemic continues to cause economic troubles in these areas. However, Shiseido has announced the establishment of new marketing activities such as product launches to recover from the adverse effects it would experience due to the pandemic
He also highlighted that the company could expect a level of uncertainty moving forward with its global operations. He noted that the company cannot foresee future losses or gains as of the moment, but continues to investigate and analyze the impact of the pandemic on its business.
