【正文】 g PwC 17 ? Management Profile Management Experiences Person in charge SHAN WEI Position Gender General Manager Female Age About 30 Education Undergraduate 1996now: General Manager of Beijing Flower Friends Cosmetics Sales Center Job History 5 Yrs Beijing Flower Friends Cosmetics Sales Center Target Overview Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 18 Southern Sales Section ? Organizational Structure Shiseido Liyuan General Manager Administration Dept Finance Raw material purchasing Equipment Purchasing amp。 Marketing Dept Import products sales** *Handles imports of raw material and finished products. **Beijing Flower Friends Cosmetics Sales Center Target Overview Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 19 ? Organizational Structure Zotos Production Management Dept Warehouse amp。 the amount in 1998 and 1999 are deduced from the figure in 2000 and the growth rate based on our data from 40 departments all over China. Perfume is excluded from the sales amount and the total market share. Unit: Million Yuan RMB Need Revising PwC 24 I: Executive Summary II: Target Overview III: Market and Products IV: Distribution Channel V: SWOT Analysis and Our Comments VI: Financial Analysis VII: Appendix Need Revising PwC 25 Distribution Channel ? Shiseido Liyuan and Zotos have set up an extensive distribution work in China and they both are only interested in selling directly through sales counters in department stores instead of distributors。 ** The yearly figure is in the section of financial analysis。 Need Revising PwC 26 Shiseido Brand Flower Friends Sales Center Dah Chong Hang Guangzhou* Shiseido Liyuan Shiseido Liyuan’s Offices in 23 cities 49 Counters in luxury department stores in 22 cities** Consumer ? Flower Friends is the only distributor authorized to sell the Shiseido product in China. ? Flower Friends is fully controlled by Liyuan and uses Liyuan?s distribution work to sell Shiseido products in China Notes: * Dah Chong Hang is a general trading pany based in Hong Kong, sells Shiseido products in the Hong Kong and Macao markets since 1962. In 1998,SHISEIDO GROUP established a joint venture with DCH, Shiseido Dah Chong Hong Cosmetics Ltd..Dah Chong Hang Guangzhou is a subsidiary pany. ** Refer to Appendix for a list of the counters In addition to Liyuan?s work, Flower Friends also uses Dah Chong Hang is to sell Shiseido in Guangdong Province. Given rising consumer ine in many cities, Shiseido Liyuan has increased its total number of sales counters steadily from 38 in 1998 to 49 in Feb, 2001 at about 8% pound average growth rate (CAGR) over the past three years. ? Current Distribution Channel Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 27 ? Current Distribution Channel Aupres Brand Shiseido Liyuan Cosmetics Co., Ltd ? Shiseido Liyuan has opened 23 sales offices in China. However, the sales work is still under development and will have some changes / adjustments in the future. ? Dah Chong Hang is the only local distributor for Aupres in China and it is responsible for Aupres? sales in Guangdong Province. ? Shiseido Liyuan has increased the total number of sales counters rapidly from 168 in 1998 to 243 in Feb, 2001 at a 13% CAGR over the past three years. ? Shiseido Liyuan will try to raise the sales revenue per counter and limit the total number of counters to no more than 270. The original plan was to set up as many as 300 to 330 counters. Offices in 23 Chinese cities 243 Counters in high class to luxury department stores in 73 cities* Consumer ? Shiseido Liyuan?s Sales Department is in charge of the overall management of all its Aupres sales counters in China, but the daily sales management is usually the responsibilities of the local sales offices in each region. Notes: * Refer to Appendix for a list of the counters Dah Chong Hang Guangzhou Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 28 ? Current Distribution Channel Shanghai Zotos CITIC Cosmetics Co., Ltd Offices in 21 cities 220 Counters in middle to high class department stores* Consumer Notes: * The list of the counter is not available. ? Zotos has not only opened some counters in highclass department stores, but also in the midclass department stores where Shiseido and Aupres normally do not have their counters. ? Zotos has increased the total number of sales counters to about 220 in China and the actual figure may be even larger according to L?OREAL. ? Shiseido Zotos? Sales Department is in charge of the overall management of all its Za sales counters in China, but the daily sales management is usually the responsibilities of the local sales offices in each region. Za Brand Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 29 Shiseido Liyuan Total Regional Headquarter: 5 Local Office: 16 ? Distribution and Sales Support Regional Headquarter: Shenyang Office: Dalian Harbin Changchun Northeast Regional Headquarter: Shanghai Office: Hangzhou Nanjing Wuxi Ningbo East Regional Headquarter: Guangzhou Office: Zhuhai Shenzhen South Regional Headquarter: Beijing Office: Shijiazhuang Lanzhou Tianjin North Regional He