Shiseido is launching an innovations fund with Boyu Capital to capitalize on the Chinese market opportunity.
WHO: The Shiseido Beauty Innovations Fund will be jointly managed by Boyu Capital and Shiseido to explore investment opportunities in emerging Chinese beauty and wellness brands as well as related technology companies such as e-commerce services and consumer experience technology.
Founded in 2011, Boyu Capital is a leading alternative asset management firm with offices in Hong Kong, Beijing, Shanghai, and Singapore. Comprising a team of experienced investors and business operators, Boyu provides growth capital and strategic support through long-term partnerships with leading entrepreneurs and enterprises. Its portfolio includes companies in media, technology, consumer goods, retail, financial services, and health care.
WHY: Shiseido began trading in China in 1981 by importing and selling its products in Beijing, which led to the group expanding its business in the country to include research and development, production, and distribution. China is now home to Shiseido's second headquarters, and business in the market has increased 35 percent in the first half of this year versus the same period in 2020. Shiseido said the fund will boost its portfolio in the country and help deliver on its strategy to strengthen growth in the region.
IN THEIR OWN WORDS: "Combining Shiseido's innovation and consumer insights with emerging brands' new values, the Shiseido Beauty Innovations Fund plans to further meet Chinese consumers' diversified needs through enhancing the business portfolio in China, steadily strengthening growth in the region as a pillar of the company's medium-to-long term strategy 'Win 2030 and Beyond,'" Shiseido said in a statement.
- The Shiseido Beauty Innovations Fund has as its general partner Boyu, while Shiseido acts as the fund's limited partner.
- The fund is scheduled to start operating this year, after the completion of relevant regulatory filings in China.
- In 2019, Shiseido established China Business Innovation, or CBI, an investment office in Shanghai. Its mission is to promote innovation in existing activities and new business development.
- Shiseido China and CBI will work especially with Boyu to identify target companies.
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