Shiseido is implementing another strategic adjustment in China.
According to a recent listing on the Beijing Equity Exchange, a 35% equity stake in Shiseido Liyuan Cosmetics Co., Ltd. (hereafter "Shiseido Liyuan") is proposed for transfer at a base price of 199.5 million yuan. When contacted for details, Shiseido China stated that specific operational data and circumstances have been publicly disclosed on the Beijing Equity Exchange website.
In the 1990s, Beijing Liyuan Co., Ltd. partnered with Shiseido Company, Ltd. (OTC: SSDOY) to establish Shiseido Liyuan. The listing information shows the legal representative of the target company is Toshinobu Mazu, who also serves as CEO of Shiseido China & Travel Retail. The equity structure consists of Shiseido Co., Ltd. holding 40%, Beijing Liyuan holding 35%, and Shiseido (China) Investment Co., Ltd. holding 25%. The transferor in this instance is Beijing Liyuan.
The cosmetics brand most familiar to Chinese consumers under Shiseido Liyuan is Aupres. Industry sources close to the company indicate that Aupres was positioned in the mid-to-high-end segment upon its establishment, securing placements in major department stores and benefiting from market opportunities at the time. However, in recent years, with the rise of e-commerce and domestic brands, Aupres's brand appeal has significantly diminished. The source noted that during previous Double 11 promotions, Aupres even offered discounts as high as 80% to top live-streamers, a strategy that impacted offline sales at the time.
Daily chemical and cosmetics industry expert Bai Yunhu suggests the Chinese partner's potential "exit" may be influenced by uncertain future macro-environmental factors. Furthermore, the momentum of Japanese cosmetics brands like Aupres has waned over the past few years, with several companies experiencing declining performance trends in China.
Disclosures from the Beijing Equity Exchange reveal that Shiseido Liyuan reported annual revenue of 869 million yuan for 2025, with a net loss of 41.337 million yuan. For the first five months of 2026, the loss widened to 53.41 million yuan, while revenue for the same period was 234 million yuan.
It is noteworthy that Shiseido Company, Ltd. (OTC: SSDOY) initiated its most significant organizational restructuring and executive personnel changes in recent years in January, involving the reorganization of several core departments. Shiseido China has also undertaken multiple strategic contraction adjustments this year. In June, the status of the group's Shiseido Guangdong Cosmetics Co., Ltd. was changed to "cancelled." In April, the group's makeup brand "MAQuillAGE" closed its Tmall Global flagship store, cleared its Douyin flagship store, and now only maintains a JD.com Global flagship store.
Comments