【正文】 adquarter: Chongqing Office: Changsha Kunming Chengdu Wuhan Southwest Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 30 Shiseido Liyuan Sales Districts Northeast North East Sales Employee 17 29 38 Duties ? Set up sales counters in department stores ? Supervise sales counter? daily business activities ? Train beauty advisors ? Supply products to sales counters ? Provide aftersale services Sales Size in 2001 Monthly Sales Revenue Million RMB Monthly Sales Revenue 5 Million RMB Monthly Sales Revenue Million RMB South 19 Monthly Sales Revenue 4 Million RMB Southwest 25 Monthly Sales Revenue 5 Million RMB ? Distribution and Sales Support Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Sales Size in 2000 Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB Need Revising PwC 31 Regional Headquarter: Beijing Office: Tianjin Dalian Shenyang Harbin Qindao Zhengzhou Shijiazhuang Jinan District II Regional Headquarter: Fuzhou Office: Shenzhen Changsha Kunming District III Regional Headquarter: Shanghai Office: Nanjing Wuxi Hefei Hangzhou Wenzhou Wuhan Chengdu District I ? Distribution and Sales Support Local Office: 18 Regional Headquarter: 3 Distribution Channel Source： Industry interview China Economic Information Network PwC analysis ZOTOS Total Regional Headquarter: 3 Local Office: 18 Need Revising PwC 32 Zotos Sales Districts District I District II District III Sales Employee 45 56 21 Duties Sales Size in 2001 Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB ? Distribution and Sales Support ? Set up sales counters in department stores ? Supervise sales counter? daily business activities ? Train beauty advisors ? Supply products to sales counters ? Provide aftersale services Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Sales Size in 2000* Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB Monthly Sales Revenue Million RMB * The total sales size of all districts is above 30 million which is larger than the sales revenue in the profit and loss account. It will probably that the sales size from Zotos refers to the sales revenue in retail price. Need Revising PwC 33 ? Brands and department stores Aupres Shiseido Za Store listing fee no no no Others Payment term consignment consignment consignment ? Department stores do not set any monthly sales revenue target for the three brands given the brands? strong reputation in the market. ? Shiseido and Aupres usually do not involve in promotional activities held by the stores. Za participates in some of the promotions held by the stores. Business Type Stores’ earning 30days 30days 30days 20~25% of turnover 25~30% of turnover 25~30% of turnover Distribution Channel Source： Industry interview China Economic Information Network PwC analysis Need Revising PwC 34 ? Logistics system General Process Product Plant Warehouse Regional Sales Center Warehouse Regional Sales Office Warehouse Sales Counter Products can be delivered by air in case of emergency. Distribution Channel Transportation by Road Transportation by Railway Transportation by Air Source： Industry interview PwC analysis Shiseido amp。 Equipment maintenance Finance amp。 opened in Shanghai and provided beauty counseling for Shiseido and Aupres? loyal customer.* ? Passed ISO 9002 certification in March. ? Shiseido Liyuan pleted its secondphase expansion of the plant. ? Launched Aupres Dx series. ? Launched Shiseido perfume. ? Shiseido Liyuan started bulk Za production of skincare products. ? Zotos started production in shanghai. SHISEIDO GROUP ? SHISEIDO GROUP in China * With 3,000 RMB annual spending on the Shiseido brand or 1,500 RMB on Aupres, a customer is qualified to bee a member of the Center. Need Revising PwC 10 2000 ? Zotos started distributing the product in major cities in China. 2001 ? SHISEIDO GROUP plans to launch men?s cosmetics in China in October. Year Target Overview Source： Open information from Shiseido Industry interview PwC analysis Shiseido Aupres Za ? Shiseido Liyuan received ISO14001 for Environment Management System. ? SHISEIDO GROUP established its first flagship store, Salon des Cosm233。 Logistics Research amp。 ? They both consign their products to the department stores who are paid based on a fixed percentage of the sales turnover。 ***Based on our industry interview, by the end of 2000, the inventory value of the final products for Aupres, Shiseido and Za are 21,910,000, 22,540,000 and 8,870,000 RMB, respectively. Then we calculate the total days based on these inventory value. Distribution Channel Source： Industry interview PwC analysis Aupres Shiseido Za For city office Raw materials for 30day production needs Finished products for 15day sales Raw materials for 30day production needs Raw materials for 30day production needs Finished products for 15day sales For