Shiseido's Baume et Mercier Failed in China
1min read Shiseido's withdrawal of its subsidiary brand BAUM from the market highlights the important link between brand strategy and market execution, as well as the direct impact of group resources allocation on the performance of a single brand. BAUM entered the Chinese market with its sustainable development concept, unique packaging design and mid-to-high-end market positioning, but ultimately failed to establish itself in the Chinese market due to various factors, including insufficient brand marketing efforts, lack of independent and influential offline exhibition space, and the group's internal resources being more inclined towards the development of other high-end brands such as The Ginza and CPB The Key.
BAUM's case illustrates that even with a clear brand concept and eco-friendly positioning, without sufficient market promotion and offline experience support, it is difficult for brands to fully convey their stories and product advantages to consumers, especially in highly competitive markets. In contrast, other Shiseido brands such as CPB, with strong market promotion and deep penetration in the high-end market, have achieved sustained growth and are market leaders in China.
In addition, Shiseido's strategic adjustments, such as establishing a fragrance business partnership with Max Mara and introducing new brands like Drunk Elephant, also show the group's dynamic adjustments and response to market trends in the high-end market, even in the face of external unfavorable factors such as Japan's nuclear waste issue, by quickly adjusting strategies to achieve market share growth in the high-end cosmetics market.
However, these moves have not immediately translated into a full recovery of the overall market performance, indicating that brand portfolio optimization and market strategy adjustments take time to show results, and also highlighting the importance of initial market penetration strategies, distribution and long-term brand building planning when entering a new market. The withdrawal of BAUM is not only a loss for a single brand, but also provides valuable lessons for the industry, especially in terms of deep thinking on brand positioning, market strategy and execution.