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 pharmacies.
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.
The company’s success can partly be attributed to its strategic network distribution 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.
Jala is known for employing high-profile celebrities to promote its brands. For example, its Maysu brand gained great popularity after being endorsed by Taiwanese film star Shu Qi. Since the beginning of this year, the group launched its largest nationwide campaign for Chando featuring China’s diving team, in an effort to leverage the London Olympics and associate the brand with excellence. This is also regarded as a rebranding effort to differentiate Chando from Shiseido, both of which share similar pronunciation in Chinese.
A year ago, the group established its research and development center in Shanghai, and claimed 88 patents in design and product formulas. With its first ever Chando men care series and Maysu make up lines entering into the market last October, Jala is set to further expand and strengthen its position in middle to high-end beauty and personal care category.
Despite its gains, Jala CEO Zheng Chunying insisted Jala was in no hurry to be listed on the stock market. “Of course we will consider an IPO when the time is right, but I always bear in mind that to be listed on the stock market is just the beginning of operations on a new level,” said Zheng. “It is our ultimate goal to create an international brand that will promote the essence of Chinese aesthetics and values.”
As the middle class expands in China, domestic players are well positioned to play a major role in the personal care marketplace.
Ally Dai is Deputy Editor-in-Chief of Ringier Trade Media Ltd, responsible for trade publications including Happi China. She has more than 10 years of experience in the cosmetic and food industries. Happi China is a leading media for the China household & personal care industry. Published by Ringier Trade Media in strategic editorial partnership with Happi, it helps local manufacturers update their knowledge on formulating, testing and packaging, as well as providing market insight.