Shanghai Jahwa: Liushen Shower Cream (A)

Shanghai Jahwa is the largest domestically owned Chinese manufacturer of cosmetics and personal care products. In recent years, it has been part of a booming market with growth rates of 35 per cent per year. This spectacular growth rate has attracted and been fuelled by the entry of major multinationals, including Unilever, Procter & Gamble, Shiseido, Kao, and others. The marketing challenge for Shanghai Jahwa is to carve out viable and defensible positions in the marketplace, in the face of competition from some of the most powerful global players in the industry. The case illustrates management issues with respect to extending a very successful brand of Chinese eau-de-toilette named into the shower cream product category. Unilever already has a strong and established shower cream on the market under its well-known Lux brand. In addition, other international players are entering in the market. The case calls for the development of a brand strategy, taking into consideration market position, brand extension, and competitive issues. A follow-up case (9A98A024) is available.

• China
• Brand Positioning
• Brand Extension
• Marketing Defense Strategies
• Competing with Multinationals