TSUBAKI Series Shifting to Vietnam Production: A New Era in Japanese Beauty
- Nikita
- Jan 23
- 4 min read
Updated: Feb 18
TSUBAKI series shifting to Vietnam production stems from Shiseido's divestiture of its personal care business to FineToday and a strategic global manufacturing pivot. For overseas buyers, this opens doors to cost-effective, high-quality Japanese beauty products like TSUBAKI Vietnam-made, boosting Asian market penetration with reliable supply chains.
The Evolution of TSUBAKI: From Shiseido to FineToday
Launched by Shiseido in 2002, TSUBAKI quickly became a premium hair care icon. Its camellia oil formulas deliver silky results, dominating sales in Japan, China, and Southeast Asia. The brand sells hundreds of millions of units annually, alongside Fino treatments. Initially, production centered on Shiseido's Saitama Kuki factory, which emphasized "Made in Japan" prestige. However, as demand grew in Asia, Shiseido Vietnam Inc. began handling production in the 2010s. By 2021, Shiseido refocused on luxury skincare, spinning off daily essentials like TSUBAKI, SENKA, Uno, and Fino. This decision stemmed from differing business paces between cosmetics and mass-market items, leading to over ¥100 billion in revenue from 20 brands.
2021-2022 Timeline: The Birth of FineToday
July 2021: European private equity giant CVC Capital Partners carved out Shiseido's personal care division, creating FineToday Shiseido (now FineToday Holdings). This move began with the outsourcing of 300 sales and marketing staff, along with R&D and production to Shiseido.
August 2022: Shiseido transferred production assets, including the Kuki and Vietnam factories, to FineToday.
April 2023: Kuki became FineToday Industries, focusing on premium "Made in Japan" fino production.
December 2023: FineToday fully acquired the Vietnam factory. This acquisition was a key trigger for TSUBAKI Vietnam-made dominance, slashing outsourcing costs and enabling vertical integration. The transfer terms favored FineToday, resulting in a ¥10.3 billion negative goodwill gain.
Why TSUBAKI Shifted to Vietnam Production: Costs, Markets, and Strategy
The ramp-up of TSUBAKI Vietnam-made prioritizes cost reduction and Asian export efficiency. Labor costs in Vietnam are approximately one-fifth of those in Japan, significantly cutting expenses. Additionally, the proximity to key markets reduces shipping costs by 20-30%. The sales mix for 2024 is projected to be 43% from Japan, 38% from China and Hong Kong, and 19% from the broader Asia-Pacific region. Notably, Southeast Asia is expected to see a 10% year-on-year growth. Local production allows TSUBAKI to dodge tariffs and speeds up delivery times. Quality remains a priority, maintained through ISO14001 standards and inherited Shiseido technology. The launch of premium "Black TSUBAKI" products raises prices, helping to offset raw material hikes and improve margins. While Vietnam will handle the volume production of TSUBAKI, the Japan Kuki factory will continue to focus on premium Fino products.
2024: CVC Gains Full Control and Independent R&D
In June 2024, Shiseido sold a 20.09% stake to CVC, which now holds over 99% through Oriental Beauty Holding. This sale effectively ended any equity links between Shiseido and FineToday. Public contracts do not mandate any technology tie-ups. Since 2021, FineToday has ramped up its R&D efforts, opening the Toyosu Beauty Innovation Center in 2023 for proprietary development. The company’s 2027 plan targets over 7% sales growth, the introduction of new brands, and talent KPIs to mitigate outflows. CVC, headquartered in Luxembourg with ¥200 trillion in assets under management, aims to boost value for an eventual exit. A bid from Bain Capital is imminent, but supply remains stable.
The Future of TSUBAKI: Opportunities and Challenges
As TSUBAKI Vietnam-made continues to evolve, it faces both opportunities and challenges. The shift to Vietnam production not only enhances cost efficiency but also aligns with the growing demand for Japanese beauty products in Asia. However, maintaining quality while scaling production will be crucial. FineToday must navigate the competitive landscape of beauty products, ensuring that TSUBAKI retains its premium image.
Embracing Sustainability in Production
Sustainability is becoming increasingly important in the beauty industry. FineToday can leverage its production capabilities in Vietnam to adopt more sustainable practices. This includes using eco-friendly materials and reducing waste. By embracing sustainability, TSUBAKI can appeal to environmentally conscious consumers and enhance its brand reputation.
Expanding Global Reach
With the shift to Vietnam, there are significant opportunities for TSUBAKI to expand its global reach. The brand can explore new markets beyond Asia, tapping into regions that are increasingly interested in high-quality Japanese beauty products. Strategic partnerships with local distributors can facilitate this expansion, ensuring that TSUBAKI products are accessible to a wider audience.
Innovation and Product Development
Innovation will play a key role in the future of TSUBAKI. FineToday’s investment in R&D is a positive step towards developing new and exciting products. By staying ahead of beauty trends and consumer preferences, TSUBAKI can continue to attract a loyal customer base. The introduction of unique formulations and packaging can set the brand apart in a crowded market.
📝 Conclusion
From Shiseido's split to CVC ownership and factory control, TSUBAKI Vietnam-made is evolving into an affordable global powerhouse in the beauty industry. This transformation positions the brand for success in overseas TSUBAKI wholesale markets, making high-quality Japanese beauty products accessible to a broader audience.
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