Villoo Daji, Senior Vice President of Group Marketing at Baccarose Perfumes & Beauty Products, oversees the introduction of global brands to the Indian market. In an exclusive interaction with BW Businessworld, Daji shares insights into Shiseido’s franchise model, best-performing categories and strategies for sustainable growth in India.
Could you share the factors that influenced the decision between adopting a licensing model or a franchise model for introducing the new global line of Shiseido, a Japanese brand, to India? What are the key advantages and potential challenges of the selected model in the Indian market?
Certainly. The decision to introduce the new global line to India was carefully considered, and we opted for a franchise model. This approach allows us to be more glocalised, adapting best practices to suit the Indian beauty environment. We can curate a range of products based on specific Indian skin concerns and have direct communication with consumers.
Moving on, within Shiseido’s portfolio, which category has been the best-performing in the Indian market, and what factors do you attribute to its success?
Skincare has been the standout category for us. Shiseido’s skincare products undergo thorough clinical analysis, and their high efficacy shows visible results on the skin after just one week of use. Our modern Japanese skincare, known as J-Beauty, is a blend of tradition and innovation, resulting in products that not only enhance beauty but also strengthen and protect the skin.
How does Shiseido plan to sustain and build upon the success of the current best-performing category? Are there any strategies in place to diversify and strengthen performance across other categories?
The focus will remain on skincare and cosmetics, particularly those with clinically proven skincare benefits. Our strategy involves promoting the ASR regimen—Activate, Strengthen, and Regenerate. We will concentrate on key products like Eaudermine, Ultimune, and Essential Energy. Additionally, we have enlisted Tamannah Bhatia as the ambassador for these products.
Speaking of innovation, how does Shiseido approach innovation within the skincare category, considering the evolving preferences and demands of the Indian consumer?
Shiseido is highly research-driven, and we constantly innovate to meet evolving consumer preferences. Smaller and more convenient packaging sizes are a current trend, especially among working professionals. The ASR regimen addresses the specific issues of Indian skin, and our Skin Visualizer—a touch-free device—helps visualise the skin’s current condition.
Customer feedback plays a crucial role in shaping innovation. What role does it play in Shiseido’s innovation strategy?
Customer feedback is invaluable. Despite our premium price point, we offer value through smaller pack sizes for consumers to try and experience the efficacy. Once they see visible results, they naturally invest in larger-sized products. This approach aligns with our commitment to offering personalised attention and trials.
Balancing online and offline marketing is crucial. How does Shiseido approach this in the Indian market?
The opening of our first standalone boutique in Mumbai aims to provide an elevated omnichannel experience. Our marketing campaign, initially deployed on digital platforms, focuses on education, building consideration, and generating trials. We recognise the need for both online and offline presence to engage consumers effectively.
Who is the primary target audience for Shiseido in India, and how has the brand tailored its products and marketing strategies to resonate with this audience?
Our target audience varies across age groups. Tamannah Bhatia, our brand ambassador, represents natural beauty, making her an ideal choice. The opening of standalone boutiques, along with a focus on the ASR regimen, aims to engage consumers of all ages.
Could you elaborate on Shiseido’s distribution strategy in India and how it ensures product availability across different regions?
Our omni-channel distribution strategy ensures quality service and brand experience, known as Omotenashi in Japanese. We adapt our strategy to the vast and diverse Indian market, offering the best of our brands and products across e-commerce platforms, retail outlets, and our standalone boutiques.
