Follow Tendency and Keep Transforming .Be a Committed Long-termist. Shanghai Jahwa Held "Dedicated to beauty-2022 Strategic Conference"2022-03-18
Shanghai Jahwa United Co., Ltd (SH.600315) holds the "Dedicated to Beauty"-2022 Strategic Conference online on March 18th. With a development history of 124 years, Shanghai Jahwa has always been striding forward on the road of pursuing beauty with dedication. At this conference, focusing on "dedication", Alex Pan，the Chairman and CEO of Shanghai Jahwa leads his core management team to expound the achievements and future plans of the company in the past year from the dimensions of enterprise strategy, brand innovation, channel evolution, culture, system & process and ESG. Moreover, he also invites experts and partners outside to present discuss and share the current market trends together.
Keynote Speech: Dedicated to Beauty
At the conference, the company first released a brand-new propaganda movie with the theme of "Dedicated to beauty", showing the development history of the company in the past 124 years. Although Shanghai Jahwa has undergone many changes, it has never changed its initial intention of guarding Chinese beauty with dedication. Next, Alex Pan, Chairman and CEO, takes "Dedicated to Beauty" as his keynote speech’s topic, comprehensively illustrates the operating achievements of Shanghai Jahwa in 2021 and its upgrading strategy in 2022, he said: "our company has released and implemented a business guideline that was consumer-centered, with brand innovation and channel evolution as two drivers, and culture, system and process and digital transformation as three enablers, and initial results was achieved finally. In 2021, the company's performance after deducting non-net profit reached a new high in the past six years, and its operating cash flow also reached the highest value in the past many years. "
He explains that the company's 123 Operation Principle will be comprehensively upgraded and iterated in 2022. Specifically, in terms of consumer-centered, the company will drive R&D with global multi-dimensional insight, actively upgrade R&D methodology, and realize marketing integration with the help of intelligent services; In the aspect of "brand innovation", "HIT" model will be evolved into "HEART" model. "Channel evolution" will be rooted in the following five core upgrading measures such as strategic partnership, fine & detail operation, smart retail, private domain and business model innovation. In addition, the company will continue to actively enhance the organizational atmosphere, build an efficient digital intelligent system with the "ACT" model, and strive to make the company a quantifiable, visual and optimizable organization.
Alex Pan also indicates that Shanghai Jahwa will comprehensively promote ESG strategy from various dimensions such as green and low-carbon ecology, shared and win-win social values and better corporate governance in the future. As a long-termist of the industry, the company always takes creating maximum value for consumers, employees, shareholders and society with dedication and kindness as its mission. He said: "We are ambitious and forge ahead. we actively changed, improved and optimized in the past 2021. We will continue to make progress and continue to work hard to achieve the ultimate goal of carry forward, and presenting Chinese beauty to the world."
The Upgrade Iteration of Brand & Channels Led by Market Trends
The special guest, Qin Shuo, founder of Chin@moments and China Business Civilization Research Center, shares the “2022 China Consumption Insight Report: Consumption Trend in the New Era and the Road of Chinese Brand” jointly released by Shanghai Jahwa, National Business Daily and Chin@moments at the conference. According to the report, in view of the good result that the total retail sales of consumer goods in China exceeded 44 trillion yuan in 2021, China will probably be the largest consumer market in the world. In addition, the central government and local governments at all levels are also introducing various incentive policies to stimulate and promote consumption, and the current Internet penetration rate in China is over 70%. In this context, China's consumption in 2022 will gather in the following new fields: cultural self-confidence, quality dividend, uni-market, brand new scenario, world stage, environmental liability, and beauty& health. "On the whole, the Chinese consumption is entering a new era of quality, green, global, full scene and brand internationalization. Therefore, enterprises should also ride on the momentum by taking these seven trends as a guide." He concludes.
After Alex Pan's speech and Qin Shuo's analysis, Shanghai Jahwa's management team elaborates on the upgraded brand innovation and channel evolution model, specifically as follows:
This year, the company upgrades its brand innovation model completely into "HEART" model, aiming at creating the moat of the brand with dedication. Among of which, H in the model represents the research and development of dedication, feel at ease and beauty. Jia Haidong, senior R&D director, said that the company's R&D concept is consumer-centered, and launches the products of “Health beauty” series by focusing on publicizing its three strengths: basic research, application innovation and value shaping. "This year, the company plans to promote the disruptive macromolecular MM3 sunscreen technology in the industry, and it will be applied to Yuze Sunscreen. Consequently, an innovative sunscreen system will be created by designing the molecular structure, polarity and molecular weight of sunscreen, thus meeting the sunlight protection needs of sensitive muscle people. At that time, a safer, greener and more effective innovative solutions will be offered by the company. " The "EAR" in the model has the meanings of " Exploration", " Accompanimen" and " Resonance". Mandy Chen, chief marketing officer, explained that brands will establish a clear and unique positioning and value, and try to gain a stronger band influence, build a new marketing matrix through cross-border IP, explosive word-of-mouth and content innovation of livestreaming, so as to set a new benchmark for the industry. T stands for " Tailor creation". Mickey Zhang, Chief Digital Officer stresses that in order to better grasp the new consumer demand, the company will make efforts to automate and smart brand marketing, expand the crowd circle, create explosive IP and launch customized products in the future.
In response to the continuous changes in the consumer market and shopping scenarios, the company has made the following arrangements in brand marketing: in terms of channel evolution, the five core strategies released last year have been upgraded to strategic partnership, fine & detail operation, smart retail, private domain and business model innovation. Ye Weimin, deputy general manager and chief operating officer, continues to explain, in terms of offline channels, the company will continue to promote the construction of the "3 +3" new retail system, vigorously develop the platform of “Being delivered home and to store” and smart cloud store on the To C terminal, and use digital distribution channels, community operations and retail platform members on the To B terminal to realize marketing empowerment, so as to promote the digital transformation of the company's product sales in supermarkets, department stores, CS and innovative channels. In terms of online channels, Mickey Zhang, the chief digital officer, introduces, the company will further integrate online omni-channels, enhance the capabilities of the four middlegrounds, including effect marketing center, private domain operation center, content creation center and data science center, drive business growth via refined operations related to people and goods yards, as well as intelligent customer service marketing integration, so as to promote digital advancement of online channels. In addition, the company will lay more emphasis on the coordinated development of online and offline, so that omni-channel user data will be precipitated, integrated and cross-analyzed by the company. Consequently, repurchase transformation can be achieved through global CRM operation, brand marketing and content operation.
Focus on Internal Strengths: Enhance Culture and Systems
Promote Sustainable Development
In the past year, Shanghai Jahwa has also invested a lot of money and energy in its internal and background promotion, specifically as follows:
In terms of organizational culture, Cao Yang, chief human resources officer said: “in 2021, the company adhered to the corporate values of ‘open and transparent, innovative and entrepreneurial, responsible and efficient, collaboration and win-win’, made every effort to break departmental boundaries, strengthened organizational coordination, and effectively improved the cohesion and centripetal force of enterprises. In 2022, Shanghai Jahwa will continue to improve the working atmosphere and create a good environment for talent development.”
In terms of system & process flow, Xu Wei, chief technology officer, indicates the company insists on creating efficient and intelligent systems and processes with dedication, further optimizes and enhances the grass-roots architecture, business digitalization, and data visualization technology, so as to integrate and connect the management system, business system, collaboration tools, analysis and decision-making. In the mean-time, the company also strives to improve the three major capabilities of data, technology and operation and maintenance, so as to smoothly realize the company's transformation and management upgrade.
In terms of ESG, the company took the lead in releasing the “Medium-and Long-Term Strategic Plan and Outline’ of the industry in 2021, and achieved good results in three aspects: "green and low-carbon environmental ecology", "sharing win-win social value" and "better corporate governance". Dong Hongyang, senior supply chain director, explains, the company carried out the whole life cycle analysis of products, and comprehensively realized green and low-carbon style in the green design of product raw materials and packaging materials and supply chain operation last year. Han Min, deputy general manager, chief financial officer and secretary of the board, said: “In terms of corporate social responsibility, the company has been engaged in alkaline emergency rescue, rural revitalization and caring for women and vulnerable groups. In terms of corporate governance, the company promotes the board of directors, diversified, improved ESG performance management, and increases the responsibilities of professional committees, which gains multiple recognition from the society and institutions.
Roundtable Forum: Keep up with Trends and Achieve Long-termist via Dedication
At the conference, Chen Bing, general manager of Sephora Greater China as a representative of high-end beauty retailers, Ma Hongbin, Senior Vice President and Head of Commercialization of Kuaishou, who is represented by the cutting-edge traffic platform, also joins the guest camp of the conference. Together with Qin Shuo and Alex Pan, they have an in-depth discussion on the two trends of cultural self-confidence and quality dividend in the roundtable forum with the theme of "Brand 2022: New Consumption Trends and Innovation Path".
"Quality" and "dedication" are the words that with a high-frequency being mentioned in the discussion. Chen Bing first mentions that Sephora has a deep insight into the consumption trend of high-end beauty retail industry, and consumers will eventually move closer to pursuing high quality, cultural heritage and strong strength behind when purchasing domestic brands. Sephora will join hands with national brands to bring this "cultural confidence" to a larger world stage. As the representative of the current traffic platform, Ma Hongbin said that although there are many new species existing in the market now, only brands with dedication can achieve a sustainable development when they lose short-term traffic dividends. Alex Pan also believes that in addition to trying to attract traffic, brands in the new era also have to try their best to realize transformation and repurchase, however, it can be achieved only on the basis of long-term dedication and continuous creation of good products and experience. He also indicates that Shanghai Jahwa is willing to work closely with the government, industry and partners to promote the healthy development of the beauty and daily chemical industry. As an observer of business research, Qin Shuo finally concludes that the bad consumption ecology of price comparison and price reduction comes to an end now. It’s just the time for Chinese brands to deepen product quality and arouse people's cultural self-confidence. Besides, they shall also actively keep an eye on the current trends and conduct transformation, and enrich and meet diversified needs, so as to create a more beautiful and healthy life for vast consumers.
It is the first year of the new regulations on cosmetics supervision in 2022 when the cosmetics industry is ushering in the strictest supervision period in history and will enter a new era of "institutionalization, legalization and standardization". Guided by the upgraded 123 Operation Principle, Shanghai Jahwa will continue to push forward various reform and optimization measures, uphold the profound understanding and insight into "dedication", give full play to its solid scientific research and characteristic advantages of national enterprises. Moreover, it will stay true to the mission, rise abruptly based on its accumulated strength, start again with dreams, live up to the glory, and brings more beautiful products and services to vast clients. Finally, the company will actively keep up with the trends and changes, seize more development opportunities, strengthen the long-term direction, and promote the further development of the enterprise with dedication as well as kindness, so as to achieve the ultimate goal of carry forward Chinese beauty all over the world.