Shanghai Jahwa: The Maxam Brand

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. This case illustrates management issues relating to a successful brand of cream. The two main flagship products, the Maxam Tremella Pearl Cream and the Maxam Hand Cream, have evolved in very different directions. The Tremella Pearl Cream is still popular in rural areas and is considered a mainstay of rural cosmetic use. The Maxam Hand Cream, on the other hand, is primarily an urban brand which meets the need of urban women looking to soften their hands after they have been exposed to the cold and to detergents. However, in urban areas the brand is losing its appeal, as foreign competitors roll out their international brands and products. The challenge is to renew the Maxam brand without losing the loyal customers of Tremella Pearl Cream.

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