Shiseido's sub-brand BAUM defeated in China
Shiseido's skincare brand BAUM's exit from the Chinese market reveals the relationship between brand strategy and market execution, as well as the impact of resource allocation by a large group on a single brand. BAUM's exit serves as a reminder of the importance of thorough market promotion and offline experiential support when entering a new market. Other brands within the Shiseido group, such as CPB, have achieved success through strong market promotion and deep cultivation of the high-end market. The strategic adjustment within the Shiseido group also demonstrates its responsiveness to market trends and dynamic adaptability. BAUM's exit provides valuable lessons for the industry
The withdrawal of the skincare brand BAUM under Shiseido from the Chinese market highlights the important relationship between brand strategy and market execution, as well as the direct impact of resource allocation by large groups on the performance of a single brand. BAUM entered the Chinese market with its concept of sustainable development, unique packaging design, and positioning in the mid-to-high-end market. However, it ultimately failed to establish a foothold in the Chinese market due to various factors, including insufficient brand marketing efforts, lack of independent and influential offline display spaces, and more internal resources within the Shiseido group being inclined towards the development of other high-end brands such as The Ginza and CPB.
The case of BAUM illustrates that even with a clear brand concept and environmental positioning, without sufficient market promotion and offline experiential support, it is difficult to fully convey the brand story and product advantages to consumers, especially in the fiercely competitive Chinese market. In contrast, other brands within the Shiseido group such as CPB have achieved sustained growth and become leaders in the Chinese market by relying on strong marketing efforts and deep cultivation of the high-end market.
Furthermore, Shiseido's strategic adjustments, such as establishing a perfume business partnership with Max Mara and introducing new brands like Zui Xiang, demonstrate the group's dynamic adjustments in the high-end market layout and response to market trends. Even in the face of external challenges such as the issue of Japanese nuclear wastewater, the group has been able to achieve market share growth in the high-end beauty market through rapid strategic adjustments.
However, these measures have not immediately translated into a comprehensive recovery of overall performance in the Chinese market, indicating that optimizing brand portfolios and adjusting market strategies take time to show results. It also highlights the importance of early market penetration strategies, resource allocation, and long-term planning for brand building when entering new markets. The withdrawal of BAUM is not only a regret for a single brand but also provides valuable lessons for the industry, especially in terms of deep reflection on brand positioning, market strategy, and execution
