Shiseido Competes against Smaller Manufacturers in Japan

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1. In Japan Shiseido competes against smaller manufacturers like FANCL, some of which have grown into large firms. Other firms were focused on market share growth through aggressive marketing. Kanebo was unique in that it was financially troubled, and had to sell out to another firm in the industry. The high prestige market was one of Shiseido's best, and its products were sold in high-end department stores. There was also the prestige market, which is a middle segment of the market, sold in department stores. Lastly, the middle category is the lowest in the Japanese industry, a mass market category in which Shiseido competed against local brands. In the US, competition is intense at all levels. Major national and international brands compete with Shiseido, and they tend to have a wider range of colors than would be sold in the Japanese market. In the Chinese market, most major international brands (L'Oreal, Lancome, Maybelline) were now entering the market, in contrast to Shiseido, whose involvement had been ongoing since 1981. The competition in China also includes counterfeit Shiseido products, something that cost the company a significant amount of sales. Local brands also compete, if not directly then as a substitute. 2. One of the biggest advantages that Shiseido has over these competitors in Japan and China is its longstanding experience in these countries, and corresponding close ties with government. In China, the company has an advantage specifically because

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