Jahwa a Chinese cosmetics manufacturer is becoming battle with their global competitors online, where digital markets have outperformed brick and mortar stores selling cosmetics and personal products.
Jahwa based in Shanghai
Earlier this week, Jahwa based in Shanghai signed a contract with the online retailer JD.com in Beijing to sell and market its cosmetics and personal care market in the JD.
The agreement will also see Jahwa work with the online retailer to understand consumer preferences, adapt its own digital marketing program accordingly and participate in JD programs to reach consumers increasingly wired China.
He concluded a similar agreement with the arch rival JD Alibaba last year, setting up his own shop on the online marketplace Alibaba Tmall and digital campaigns from there.
The two brands of international and domestic cosmetics have long regarded department stores and shopping centers such as primary sales channels in China. But as the revolution in e-commerce in the country scans brick and mortar stores, cosmetics and personal care products are at the forefront of consumer goods list witnesses sales online migration. more information here
According to consulting firm Bain & Company, products ranging from biscuits and chocolate to shampoos and personal cleaning products experienced an annual growth of no less than 30 percent of online sales during the last four years.
Jahwa, which is rooted in daily use chemicals manufacturer in the late 1890s, is a household brand in China for its Liushen spray and cream Maxam hands.
The company has sought to break the domination of high quality cosmetics in China global brands with its own line of Herborist, inspired by traditional Chinese medicine and herbal ingredients. source Shanghai daily
In recent years, Jahwa has sought to put a global spin on Herborist selling it in Europe by cosmetic retailers Sephora and Douglas.
Jahwa’s signature cosmetics line, Herborist, was the only Chinese-owned brand to make the top 10 cosmetic brands by market share in department stores last year, according to data from China Market Monitor. But as department store sales stagnate with consumers increasingly turning to e-commerce, local brands are embracing digital, and their agility is winning them a considerable advantage over the global giants.
In 2015, Herborist was the only Chinese name to make the top 10 cosmetic brands by market share in department stores in China, eight in number, according to China Market Monitor.
But like his peers, Jahwa dependence on traditional channels weighed on its performance. the growth in revenues in 2015 contributed 5 percentage points from five years earlier to 9.58 percent. Excluding non-recurring items, earnings growth has slipped for the first time in a decade.
Jahwa said the slowing her own business came largely due to the general weakness in the cosmetics sector. Cosmetics sales growth to moderate detail, from 13.3 percent in 2013 to 8.8 percent in 2015, according to the National Bureau of Statistics.
For skin care products in general, growth in department stores has almost stagnated, Jahwa said in a response to an inquiry on its financial results in 2015 by the Shanghai Stock Exchange.
Consequently, domestic cosmetic brands Jahwa which were most active in the adoption of electronic commerce, where they see a chance in global titans overruns that have been slow to adapt to the retail scene increasingly digitized from China.
Very few international cosmetic brands can make the monthly list of the 10 top selling cosmetics on the Alibaba e-commerce site. Domestic brands such as Pechoin, Hanhoo, Chando kans and drive sales of cosmetics online.
Therefore, foreign brands have lost share in the care and makeup to Chinese competitors, about 2 to 5 percent during each of the past two years, according to Bain.
Jahwa hope that 20 percent of its sales of cosmetics and personal care products sales will be in 2018. Last year online sales e-commerce stood at 557 million yuan (about 83 , $ 3 million), or 9.5 percent of the total company.