Shanghai Pingpu Investment, a subsidiary of Ping An Trust, successfully won 100% of Shanghai Jahwa's parent company Shanghai Jahwa Group in less than 20 days. Shanghai Jahwa has given the market a big boost. On November 25th, Shanghai Jahwa announced that it has entered into a strategic business cooperation with Kao Group, Japan's largest daily chemical company, and has completed sales cooperation agreements with Shanghai Jiahua Sales Co., Ltd. and Kao (Shanghai) Product Service Co., Ltd. respectively.
“According to our strategic cooperation agreement, Shanghai Jahwa will be responsible for the expansion and operation of some channels, mainly dealer channels. Jiahua has already owned dealers in 1000 cities in the Mainland, but our channels and the future of Kao’s main There will be no conflicts in the camp channel.” Ye Weimin, general manager of Shanghai Jahwa Sales Co., Ltd., told the Daily Economic News.
Extended product category
For the sudden announcement of cooperation between the two parties, Ge Wenyao, chairman of Shanghai Jahwa, said that today is the first step of cooperation and announced that it may “take the opportunity to enter im
portant product categories such as the Diaper
industry that have never been involved before”, making it easy to associate Go to Kao's line of laundry products, Sanitary
products and Baby diaper
s. After the entry of Ping An Capital, it has been seeking the “bigger and stro
nger comprehensive fashion industry group”, and will enter the long-term co
ntrol products of giants such as Procter & Gamble and Unilever.
“Located as a comprehensive fashion industry group, not only cosmetics and daily chemicals, but also watches, jewelry, fashion and boutique hotels”, Ge Wenyao has defined the future of Jiahua many times. When talking about the progress in this aspect after the entry of Ping An, Ge revealed that at present, in the two major fields of cosmetics business and non-cosmetic business, together, more than 10 projects have been examined, and some projects have already taken shape. Among them, Shanghai Jahwa Group will participate in the Tianjin Watch Factory project in the form of 20% participation, and is still conducting due diligence, and is expected to be finalized in the first quarter of next year.
Cooperation between the two sides
After Ping An successfully entered the family, it quickly announced the “Hand in Hand” program. For the latest cooperation of the company, Ge Wenyao did not say that it brought high profit returns. “By strategic cooperation with Kao Group, Shanghai Jahwa has not only improved its sales scale and market share, but also learned its mature management system and advanced brand marketing concepts and practices.”
Ge Wenyao said, "This cooperation has both tangible and intangible meanings for Shanghai Jahwa: tangibly, domestication will increase in terms of sales scale and market share, and cash flow will increase; invisibly, cooperation will increase. The brand strength and bargaining power of the terminal channel."
As of the first quarter of this year, Kao Group's consolidated sales reached 1.200 billion yen. The Japanese daily chemical giant, which was built in China in 1993, has been slow to open up in the Chinese market. The dealer network of more than 1,000 cities across the country will be very attractive.
Kazuo Co., Ltd., chairman and president of the president, Ozaki said that Kao will use Shanghai Jahwa's sales channels to sell products, and the benefits gained after the expansion of sales are shared by the two companies.
Kao (Shanghai) Product Service Co., Ltd. Chairman and General Manager Jie Tianyu told reporters that "the cooperation with Jiahua is to prepare us to push the products to the whole country. We currently have sales networks in 90 cities. After the cooperation with Jiahua, our goal is to accelerate the development of the Chinese market in 3-5 years or so, and to sell in 650 cities."
Mergers and acquisitions are taking place
For the specific use of funds invested by Ping An Group of 7 billion yuan. Insiders disclosed, in which 20 billion will be used for home construction and improvement of the industrial chain, including the middle to the original channel No. 1 store and expand Miles Affiliate channel; in addition each of 10 billion investment to help family speed up the industrialization of the lateral and vertical mergers and acquisitions to enter the jewelry, watch industry, apparel and other fashion industries.
For the selection criteria and progress in implementing acquisitions, Gewen Yao said, "We will choose the foreign operation is better, but also in China market, brand differentiation competitive domestic enterprises to acquire real worth is not much, the next focus Will aim at foreign countries."