A 39 per cent government stake in Shanghai Jahwa United is set to be sold, paving the way for one of China’s top cosmetics manufacturers to compete more commercially in the world’s third biggest skincare market.
China’s nearly Rmb60bn ($9bn) skincare market is a magnet for foreign players such as L’Oréal of France, but domestic players have fallen behind on their home turf. Just one of the top 10 skincare companies is Chinese, according to research consultancy Euromonitor.
Shanghai Jahwa United, which had revenues of Rmb2.4bn in first nine months of 2010 and net profit of Rmb204m, reckons switching into wholly public hands should enable it to compete more effectively. The company, which is partially listed on the Shanghai Stock Exchange, plans to invest more in marketing and other areas where multinationals are leading.