Beijing Liyuan is planning to exit its joint venture with Shiseido in China, seeking at least US$29.3 million for its stake in Shiseido Liyuan Cosmetics, according to a report from Inside Retail Asia.
The joint venture, established in 1991, has been a key part of Shiseido's operations in China, manufacturing and distributing cosmetics under brands like Shiseido and Za. Beijing Liyuan, a state-owned enterprise, holds a 20% stake in the partnership. The move comes as Shiseido restructures its China business amid shifting market dynamics.
The exit reflects broader trends in China's beauty market, where local players are gaining ground and foreign companies are reassessing joint ventures. Shiseido has been focusing on direct control of its brands, and Beijing Liyuan's departure could lead to full ownership by the Japanese firm or a new partner.