Shanghai-based cosmetics and personal care company Jahwa has signed a deal with online retailer JD.com, according to a report published by Shanghai Daily, to sell and market its products via the e-commerce site.
Jahwa is said to be aiming to more than double online sales of cosmetics and personal care products in the next three years, up from 9.5 percent (CNY557 million) in 2015 to 20 percent in 2018.
According to the report, Jahwa’s move is part of a wider trend, with local companies increasingly battling it out with the multinationals online, as e-commerce takes over as the channel of choice for Chinese cosmetics consumers.
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.
Alibaba’s list of top 10 best-selling brands, by contrast, features few international brands, with local brands Pechoin, Hanhoo, Chando and KanS consistently beating their global competitors. In fact, Bain data suggests that since 2014, foreign brands have been losing market share to local companies to the tune of 2 to 5 percent a year.