Shanghai Jahwa Released Its Financial Report in FY2021 Showed Skincare as the Top Category
- Chaileedo Press
- Mar 18, 2022
- 3 min read
In 2021, Shanghai Jahwa's revenue was $1.204 billion, up 8.73% year-on-year. Its net profit was $102 million, up 50.92% year-on-year. It achieved the highest increase in the past six years.
On March 16, Beijing time, Shanghai Jahwa released its annual results announcement for 2021. During the year, the company achieved operating revenue of $1.204 billion, up 8.73% year-on-year. Its net profit achieved $102 million, up 50.92% year-on-year. Its net profit after extraordinary gains and losses reached $106 million, up 70.76% year-on-year. It reached the highest level in the past six years. Among them, the skin care category grew at a rate of 22.22% for the year far exceeding the average growth rate of China's cosmetics industry, and its revenue share rose to 35%, making it the company's top business category.
In terms of product innovation, Shanghai Jahwa applied a new product development methodology led by consumer insights and deepened cooperation with Alibaba Group's Tmall New Product Innovation Center to enhance its product innovation capabilities. It achieved initial results: the repurchase rate of HERBORIST in its Tmall flagship stores and department stores increased from 33.7% in 2020 to 41.6% in 2021. All single product of its new Tai Chi series of HERBORIST entered Top SKU of the brand and became the top 5 hot-selling products in the its e-commerce sales during the Double Eleven(Chinese Shopping Carnival) in 2021. The repurchase rate of Dr. Yu in Tmall flagship store increased to 42.6% from 36.4% in 2020, and the GMV of Dr. Yu's Intensive Hydrating & Activating exceeded $1.575 million in the first week of launch.
Moreover, due to better meet the preferences and needs of Generation Z and accelerate the rejuvenation of the brand, Shanghai Jahwa cooperated with cross-border IP to promote the brand to increase its reputation. It attracted new customers in cross category and brand value has been enhanced. Dr. Yu co-branded with China’s space to customize a limited gift boxes to enhance the brand image with the popular topic of aerospace, with a cumulative exposure of 140 million+. Gough joined hands with the anime IP Doraemon to create an image with high-tech attributes, and the brand accumulated 180 million+ exposures.
During the reporting period, the company's online business revenue reached $504 million, accounting for 42.04% of revenue. Its online revenue accounted for basically the same percentage compared to 2020. With the decline in special channel revenue, the gap caused by the decline in special channel business was made up by the rapid growth of e-commerce business. The Company's offline business maintained stable growth. The new retail business expanded rapidly, with a year-on-year growth rate of over 100%, accounting for over 10% of China's offline business. Secondly, the department store channel actively improved its optimization efficiency, with a total of 866 existing counters and stores as of the end of the year, while successfully turning losses into profits through the online operation of the Four Seasons SPA business. The CS channel improved profitability significantly through traditional CS reconstruction and Watson's profit increase.
Moreover, Shanghai Jahwa also set up a live broadcast center with a total of 18,000 hours of live broadcast time to help the company's self-broadcast business. During the reporting period, the company also actively built an integrated online and offline private domain and refined communication for users across the domain, accumulating over one million users and more than 9,000 private domain communication groups, building a 1-to-1 communication channel for VIP customers, progressively improving the overall user experience and increasing the full lifecycle value of users by 16%.
Founded in 1898, Shanghai Jahwa is one of the oldest companies in the cosmetics industry in China. The group focuses on three major areas: cosmetics, personal care and household cleaning, maternal and child care. It owns many famous Chinese brands such as skin care brand HERBORIST, florida water brand Liu Shen, infant and child brand Giving, male skincare brand gf and Dr. Yu focusing on repairing skin barrier, etc.
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