Boots is set to become a familiar name on the Japanese high street after forming a partnership with Mitsubishi Corporation.
The UK company and Mitsubishi plan to open four pilot Boots Health and Beauty stores in Tokyo next year as part of a £22m two-year trial.
If the pilot project is successful the Anglo-Japanese alliance could see as many as 400 Boots stores open in Japan where the cosmetics and toiletries market is worth £16bn – four times the size of the UK market.
The Health and Beauty shops will resemble the Boots The Chemists shops in the UK, stocking a range of medicines, cosmetics, toiletries and perfumes.
As well as stocking well-known international brands, the shops will offer Boots’ own brands such as No7 cosmetics and Natural Collection toiletries.
Boots chairman Lord Blyth said: “Japan’s health and beauty market represents an enormous opportunity and finding the right partner was vital. The Mitsubishi Corporation will be fully involved in the management of the joint company and contribute its high-quality people, in addition to its local knowledge of the markets, property and logistics.
“There will be a full evaluation of the pilot stores but both companies believe there could be potential for around 400 Boots stores across the country in the long term.”
Mitsubishi president Mikio Sasaki added: “Retailing is one of the major business sectors for the next century. We strongly believe that a partnership between Mitsubishi Corporation and The Boots Company, a world renowned company for opportunity for both sides in expanding business possibilities in Japan’s huge health and beauty retail market.”
The Japanese retail market is worth around £700bn a year, with more than half the market concentrated in two major cities, Tokyo and Osaka. The Japanese also consume a sixth of the world’s over the counter medicines.
PA News 28/07/98
