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Japan's Shiseido aims to become a top five perfume maker

| PARIS

PARIS Oct 7 Japanese cosmetics group Shiseido is aiming to become one of the world's top five perfume makers in five years, up from its current seventh spot, helped by recent acquisitions and a step up in marketing, especially online, it said on Friday.

Shiseido beat Spain's Puig this summer to win Procter & Gamble's Dolce & Gabbana perfume (D&G) licence, which generates 400 million euros ($445 million) in annual revenue. It aims to grow this to 1 billion euros in 10 years.

"We want to be in the top five in the five years to come," said Louis Desazars, Shiseido Group Chief Executive for Europe, Middle East and Africa, who was previously U.S. head of Shiseido's Nars make-up brand.

"There is a new mindset and energy in the group."

Top perfume makers globally include L'Oreal, Coty , LVMH and Chanel.

The D&G licence business will compensate for Shiseido's loss this year of the Jean-Paul Gaultier perfume licence as part of an agreement with Puig when it bought the French brand in 2011 - only to discontinue its ready-to-wear three years later.

Shiseido said the D&G perfume business had helped it more than double its market share instantly to 5.8 percent from 2.2 percent. It is aiming to reach 9 percent in five years.

On top of its own skin care lines, Shiseido makes perfume under licence for fashion brands Issey Miyake, Narciso Rodriguez, Elie Saab and Azzedine Alaïa.

The group said it had created a separate branch for niche brands it has acquired such as Serge Lutens last year and the skin care and cosmetics brands Laura Mercier and RéVive in July.

The global perfume market grew 2.9 percent in 2015, while niche perfume brands saw their sales surge 15 percent as consumers increasingly favour rare and upmarket fragrances.

Estee Lauder has also placed niche perfume brands it has bought, such as Editions de Parfums Frederic Malle and Le Labo, in a separate division.

Including perfume, skin care and make-up, Shiseido ranks fifth globally behind L'Oreal, Coty, LVMH and Chanel, and is bigger than Clarins. In skin care alone, Shiseido said it aimed to join the top three globally, up from its current fifth spot.

($1 = 0.8983 euros) (Editing by Mark Potter)

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