BEIJING, Mar.27 (Xinhua) -- Having celebrated the 120th anniversary of its founding, Shanghai Jahwa United Co Ltd - China's most historical consumer goods company - is looking to not only secure its leading position in its home market, but also rise to become a globally competitive player with the likes of L'Oreal and Proctor& Gamble.
To achieve that goal, the company will expand its portfolio in categories including high-end cosmetics, fragrance, cosmetology and health supplements, Zhang Dongfang, CEO of the Shanghai-headquartered company, announced at Jahwa's anniversary ceremony on Friday.
The most imminent expansion will be in the high-end cosmetics sector, where the company's two most premium brands, Herborist and Vive, will launch their lipstick and fragrance lines, respectively, around June.
Aside from diversifying the offerings and accelerating new product innovation of the 10 brands currently owned and operated by the company, Jahwa said it would also look for more opportunities for mergers and acquisitions. Last year, the company made its first overseas acquisition with the purchase of Tommee Tippee, Britain's largest milk bottle producer, at the cost of $197 million.
"For the first century Jahwa walked through, it grew from a local brand to a national industry giant. For the second, the mission is to be an international conglomerate," Zhang said.
A new plant in suburban Shanghai - an investment of 1.35 billion yuan ($213.2 million) - is also scheduled to be in operation this year. At 140,000 square meters, it will increase the company's manufacturing capacity by five times.
She added that the company wants to create a leading brand in every sector at the retail size of 100, 200 or 300 million yuan, depending on the category, and reach 700 million consumers in the country.
Founded in 1898, originally as Kwong Sang Hong, Jahwa became a household name for its signature product, Six God Floral Water, in the 1990s. In 2008, Herborist, the company's major money-spinner, stood out as the first Chinese cosmetic brand to retail overseas. Three years later, it became an archetype for State-owned enterprises to reform as it introduced Ping An Trust as its main investor.
However, the company has seen its helmsman replaced twice in three years since 2014, causing ups and downs for its business performance and its stock price over the period.
According to the company's financial briefing last week, it reported revenue of 6.48 billion yuan in 2017, up 8.82 percent year-on-year. (Source: China Daily)
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