Wahaha Enters the Daily Chemical Market

Recently, Chinese food and beverage company Wahaha disclosed a variety of daily chemical products at its mid-year meeting, including children's toothpaste, adult toothpaste, laundry pods, etc.

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CHAILEEDO query found that Wahaha washing&care series is produced by Hangzhou Wahaha Misheng Daily Chemical Co. Tianyancha shows that the company was established in August 2021, and its business scope includes sales of daily product sales, daily necessities sales, and wholesale of cosmetics. The company is invested by Hangzhou Wahaha Hongzhen Investment Co.

CHAILEEDO found a store named "Wahaha Chenghang Specialty Store" in Tmall selling Wahaha daily chemical series and other products. There are 5 products on the shelves, including Wahaha children's toothpaste and baby laundry pods. From the perspective of the channel arrangement, the daily chemical series has not yet been widely shopped offline, only on the e-commerce platform to promote the sale.

It is known that some of Wahaha's daily chemical products are formulated with food ingredients. Take children's toothpaste for example, the product selects plant extract raw materials, using probiotics with AD calcium, with 3 fresh tastes including orange, strawberry, and milk.

From the perspective of the products launched so far, Wahaha has focused on the children's market this time to crossover. Its children's toothpaste, not only along the Wahaha trademark, while adding the AD Calcium IP.

Wahaha AD Calcium Milk has been on the market for more than 20 years. In recent years, it has promoted the IP-based creation of AD Calcium Milk through various ways such as crossover co-branding and classic rejuvenation. According to the information publicly released by Wahaha Group, the IP-based creation of star products is one of its important strategies, and AD Calcium Milk is one of the most active single products exploring IPization.

This is not the first time that Wahaha has crossed over to the cosmetics field. As early as 2018, it launched an eyeshadow palette. However, at that time, the eye shadow palette was only used as a complimentary gift for its Nutrition Express brand. And this time, Wahaha is obviously prepared and will officially enter the daily chemical industry.

In 2013, Wahaha set a record high revenue of 78.28 billion yuan ($10.835 billion), after which it began to take a diversified route. Including children's clothing, liquor, milk powder, real estate, and milk tea stores, Wahaha has been trying to find the second growth curve of the enterprise, but the market is generally responded.

From the market perspective, with the improvement of the economic level, consumers pay more and more attention to their quality of life, and the current demand in the daily chemical market is surging. There is also a precedent for beverage companies to enter the cosmetic industry. In 2017,

Yangshengtang, the parent company of Chinese drinking water brand Nongfu Spring, announced its entry into the cosmetics industry. Its products were sold on birch tree juice and launched a moisturizing liquid, as well as hydrating and moisturizing masks, which went overseas to Japan within a year of its launch.

Although Wahaha has been uninterruptedly trying to crossover for many years, the final report performance are not very satisfactory. Whether this entry into the daily chemical industry can be successful, remains to be seen.