The new company will be called Shiseido Dah Chong Hong Cosmetics Ltd. and will start operations on November 1. Shiseido said it is aiming for yearly sales from the venture of about $37.1 million by the end of 2000.
Shiseido has been promoting its business in Hong Kong through DCH since 1962 and the move is intended to strengthen Shiseido's position in its largest market in Asia outside of Japan.
"We believe Hong Kong will play a more important role as an economic and information center in Asia, offering access to the Chinese market," the company said.
The new venture will have about 200 employees and both firms will hold a 50% stake in the operation, which will be backed with initial capital of about $17.6 million.
The move is yet another in a series of overseas ventures for Shiseido. Faced with a stagnant cosmetics market in Japan, the marketer has been trying to bolster its business operations around the globe.
Copyright September 1998, Crain Communications Inc.