Shanghai Jahwa: launching the adjustment of organizational structure to build a brand-driven model

On January 18, Shanghai Jahwa held the tenth Plenary Session of the sixth board of directors. The Board of Directors reviewed and approved the proposal on the adjustment of the organizational structure of the Company and the related proposals, including the Company's annual financial budget report in 2017.

Reshape the organizational structure to achieve flat operation

With the approval of the board of directors, Shanghai Jahwa will adjust the organizational structure in the future. It will no longer set up such four major business divisions as the Mass Consumables Division, the Herborist Business Division, the Digital Marketing Division and the Cosmetics Franchise Business Division. The key aspects of the adjustment include:

(1) Research and Development Department supports the brand development needs and carries out product research and development work;

(2) The Company sets up a Brand Management Office in charge of all brands of the Company (including but not limited to Herborist, Liushen, Maxam, Glf, Giving, HomeAegis, etc.), taking overall responsibility for the strategy, operation and resource allocation of each brand;

(3) The Company sets up a Channel Management Office to comprehensively undertake the landing of the Company's brand strategies in various channels (including but not limited to large circulation, department stores, cosmetics stores, and E-commerce), develop and execute sales plans, develop and maintain customers and terminal stores ;

(4) The supply chain is responsible for such three aspects as the production, procurement (unified management of direct procurement and indirect procurement) and logistics, to guarantee the Company’s production, distribution and operations;

(5) The original Strategic Management Department and Investment Management Department of the Company were merged and the Strategic Investment Department was set up, which is responsible for formulating the strategic development plan of the Company and advancing the implementation of the strategic initiatives; analyzing, evaluating and boosting the investment projects conforming to the strategic development direction of the Company;

(6) The Legal Department of the Company shall, in addition to maintaining the original responsibilities of legal risk management, take the responsibilities of compliance management and supervision management.

After this adjustment, the Company's marketing system will change from channel driving to brand driving. Brand is independent of the channel, assuming more decision-making power of market strategy and resource allocation.

Deepen the Reform and Explore the Potential of Brand Value

Since President Zhang Dongfang assumed office, Shanghai Jahwa has adhered to the policies of "R & D first, brand-driven, channel innovation, supply guarantee" , actively promoting the quality and efficiency of business operation, deepening enterprise reform to develop towards scientific and market-oriented direction.

At present, Jahwa has the brand equity with comprehensive category and profound accumulation, covering the vast number of consumer groups, with broad space for development. Herborist inherits the essence of "the ways to keep balance" in Chinese culture, uses cutting-edge technology to interpret beauty classics, beautify skin completely and deliver the Oriental beauty skin fashion to the world; Liushen, based on "Chinese herbal medicine" and "summer", is committed to helping the consumers get rid of the bother in summer days and bringing the nice feeling of “relaxation and freshness, carefree and comfort”; GF advocates the spiritual opinion of "being brave to be yourself", committed to providing the best personal care solutions for Chinese men; Maxam adheres to the brand strategy and the pursuit of "focusing on nature, synchronizing with the trend, beyond expectations”, bringing "natural, moderate and effective "care to the consumers. In addition,      Jahwa has also got Giving, HomeAegis, VIVE, flower & wood, Yuze, tea beauty and other well-positioned excellent brands. They constitute a rich and complete brand matrix together.

Brand is the core of enterprise development, Shanghai Jahwa will enhance its efforts in brand building, make different strategies and tactics for mature brands and growing brands, so as to drive the channel layout, strengthen the effective communication with consumers, and continuously enhance the brand equity and value. Under the new organizational structure, the Company will deploy the marketing resources and channel resources on the whole to promote brand development. In 2017, the Company will strive to achieve double-digit growth than the operating income of 2016 after deducting the sales agent of Kao's products.

Shanghai Jahwa says that the Company will strive to build a flat and efficient organizational structure, form a simple and smooth operation process, establish a rigorous accountability mechanism, and strive to become an enterprise that the competitors follow, admire and pursue, an enterprise that the industry elites want to join and throw themselves into, an enterprise with excellent suppliers and partners, an enterprise gaining the shareholders’ satisfaction and the customers’ popularity, and an enterprise making the consumers more beautiful and healthier, in order to make this outstanding national enterprises bigger and stronger in a more honest and pragmatic attitude.