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Shiseido plans to set up a joint venture in Indonesia with a local conglomerate, hoping to use its lower-priced brands such as Za to win more business from middle class consumers.
The company has reached a basic agreement with the Sinar Mas Group, one of Indonesia’s largest conglomerates. The business will be established in January 2014 with Shiseido holding about a 65% share. Sinar Mas already imports Shiseido’s Clé de Peau Beauté and other premium brands, acting as a sales agent. The products are sold at about 30 luxury department stores around the country.