Shiseido entering Romania’s luxury market

The company will be present on the Romanian market through its Shiseido Europe subsidiary, with distribution of its products through the Everet Group in Slovenia.

According to company representatives, Romania’s accession to the European Union has led to its economic growth, also visible in a rise in the population’s buying power, including increasing demand by Romanian consumers for luxury goods.

“Although the market is still small, we are certain of the development potential in both countries, especially since many European and American brands are already present in both states,” said Shiseido officials.

The company’s portfolio for the local market will include skin care products, luxury perfumes, and aromatherapy products. Shiseido is planning to open 40 stores by 2010. Its competitors on the Romanian market are Sephora and Ina International.

The local cosmetics market is expected by players to reach €1 billion in three years, provided the 10 percent growth trend continues. According to Euromonitor, the 2007 local cosmetics market was worth €720 million.

Main players on the local cosmetics market are international direct sales giants Avon, Oriflame, and Amway, as well as fast moving consumer goods producers such as P&G, Unilever Henkel.