Jahwa to concentrate on superbrands

Published: 27-Nov-2012

China's major cosmetics maker Shanghai Jahwa says it plans to concentrate on three superbrands, phasing out weaker lines, as it continues to boom under the ownership of insurance giant, Ping An.


China's major cosmetics maker Shanghai Jahwa says it plans to concentrate on three superbrands, phasing out weaker lines, as it continues to boom under the ownership of insurance giant, Ping An.

Chief Executive, Ge Wenyao, says while the current market is slack, it Is an opportunity for the cash rich company to consolidate its position, even potentially buying overseas brands.

In an interview with Nandu Daily, he said Chinese customers are falling out of favour with foreign brands, allowing it to concentrate on developing Traditional Chinese Medicine based Herborist, Liushen, for young urban families, and Maxam, aimed at females over 30, together with a further five high and middle-end brands including high end soap, Vive.

Jahwa he said aims to achieve a 2-3bn yuan (US$321m–$481m) a year turnover by doing so.

"Foreign brands are slow in reacting to problems. So if Jahwa can react quickly, it will have a competitive advantage. Meanwhile, once we make a decision, we should act quickly. If we find that a brand is not suitable for the market, we should get rid of it right away make sure it will not waste any more manpower and materials."

Ge says Jahwa has cash reserves of 1.69bn RMB (US$268m), giving it the potential financial clout to purchase foreign brands that haven't yet entered the Chinese market.

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