According to The 21st Century Business
Herald, this takeover deal was valued at
no less than $797 million, and during the
next five years, Ping An Insurance would
make the investment through its unit Ping
An Trust & Investment Co. to inject $1.1
billion into Shanghai Jahwa, in an effort to
boost the sales of the cosmetics maker to
over $2.5 billion by 2015.
Following the acquisition, Shanghai
Jahwa has tried to diversify its offerings
by cooperating with other companies.
It already owns a 19% stake in LVMH’s
Sephora cosmetics chain in China and its
Herborist brand are sold at Sephora stores
The diversification program has been
expanded since the company formed a
strategic alliance with Kao Group last
November to boost sales of Kao products
in the China market. The initial focus is
on Kao’s three brands, laundry detergent
Attack, a disposable diaper Merries and a
sanitary napkin Laurier.
In a recent interview, Jahwa chairman
Ge Wenyao said the company’s goal is to
position itself as a comprehensive fashion group, not only focusing on skin care,
but also branching out into watches and
Home-grown cosmetics are finding favor with Chinese consumers.
Jala (Group) Co. Ltd.
The company is focused on cosmetics, personal cleaning and personal care
products sold under its four major brands
targeting the middle to high-end and low-end market, Maysu, Chando, Aglaia and
Insea via major distribution channels such
as department stores, supermarkets and
Established in Shanghai in 2001 and
restructured in 2009, the private company
has seen an average growth rate of 60%
during the past five years.
In 2011, Jala Group achieved sales
revenue of $635 million, nearly 90% of
which came from its middle to high-end
brands Maysu and Chando, according to
The company’s success can partly be
attributed to its strategic network dis-
tribution expansion in China’s second-
and third-tier cities, as well as its large
marketing investments. Since 2011, Jala
Group has stepped up such efforts even
further. After 10 years of gaining ground
in China’s third- and fourth-tier cities,
the company has decided to go all out in
China’s major metropolises, focusing on
first- and second-tier cities.