Brand Strategy Analysis of Jahwa China: Evaluation of Lin Xiaohai's Reform Effects and Market Share

Based on collected materials, I will systematically analyze the brand strategy adjustment of Jahwa China and the effects of Lin Xiaohai’s reforms.

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Jahwa China (600315.SS), a century-old Chinese daily chemical enterprise, owns brands including Liushen, Dr. Yu, Herborist, MAXAM, Shuangmei, GF, Giving, and Tommee Tippee [0]. After Lin Xiaohai, the newly appointed Chairman and CEO, took office in 2024, he promoted a strategic adjustment centered on the “Four Focuses” to address issues such as brand aging, underperforming online channels, and consecutive years of declining performance [1][2].

• Focus on Core Brands
  : Streamline the brand matrix, cut redundant SKUs, and optimize resource allocation
• Focus on Brand Building
  : Build 100-million-yuan blockbuster products and strengthen brand perception
• Focus on Online Channels
  : Fully embrace live e-commerce to achieve omnichannel reach
• Focus on Efficiency Improvement
  : Optimize the supply chain and reduce operating costs

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Jahwa China has long faced the problem of overly dispersed product lines; it has many brands but lacks core breakthrough products. Lin Xiaohai pointed out: “Brands like Shuangmei and Herborist have high recognition and are well-received by domestic users, but their product lines are severely aging, making it impossible to raise prices.” [2]

According to public information, during the strategic adjustment, Jahwa China drastically streamlined its product lines and concentrated resources on building

:

Brand	Blockbuster Product	Market Performance
Liushen	Mosquito Repellent Egg	Sales surged 40% year-on-year in the summer of 2025, is expected to exceed 100 million yuan, and topped Tmall’s best-selling mosquito repellent list [1][2]
Dr. Yu	2nd Generation Barrier Repair Cream	Achieved high double-digit growth in omnichannel GMV [3]
Herborist	New Seven White Big White Clay Mask	Delivered outstanding performance during the 618 Shopping Festival, becoming Herborist’s first online 100-million-yuan product [1][2]
Herborist	Fairy Grass Oil	The industry’s first essence oil with 60% high-concentration addition and 100% plant extract, topping Tmall’s new essence oil list [4]

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• Offline market share of floral water:
  73.3%
  (Jan-Sep 2024, Nielsen data) [5]
• Floral water market share in hypermarkets:
  81.3%
  [5]
• Maintains an absolute leading position in the mosquito repellent category

The launch of Liushen Mosquito Repellent Egg reflects the brand’s youth-oriented strategy:

• Formula upgrade: Uses 20% Icaridin (Picaridin), with 8.2 hours of mosquito repellent duration [2]
• Design innovation: 48ml portable egg-shaped packaging, positioned for “outdoor scenarios” [2]
• Fragrance upgrade: Collaborated with French perfumers to create a cedar-citrus scent [6]

• Offline market share of adult body wash is only
  4.9%
  , leaving significant room for growth [5]

Herborist is indeed facing the challenge of brand aging, with a market share of approximately in the mass skincare category in department store channels in 2024 [5].

• Revenue in H1 2025 grew by
  over 50%
  year-on-year [1]
• New Seven White Big White Clay Mask topped Douyin’s whitening and brightening mask rankings for 11 consecutive days during the 618 Shopping Festival [2]
• “Fairy Grass Oil” became a phenomenon-level new product in 2025 [4]

Lin Xiaohai stated that Herborist is “moving away from the disorderly competition of ‘piling up ingredients’ and reembracing the roots of traditional Chinese medicine herbal skincare” [2].

• Remains the leader in the sensitive skin care track [6]
• Has in-depth cooperation with dermatology departments of over 300 top-tier hospitals across the country, with a brand mention rate of
  65%
  [6]
• The 2nd Generation Barrier Repair Cream has become a 100-million-yuan blockbuster product

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Brand/Category	Market Share	Data Source
Liushen Floral Water (Offline)	73.3%	Nielsen, Jan-Sep 2024 [5]
Liushen Floral Water (Hypermarkets)	81.3%	Nielsen, 2024 [5]
Liushen Body Wash (Offline)	4.9%	Nielsen, 2024 [5]
MAXAM Hand Cream (Offline)	11.7%	Nielsen, 2024 [5]
MAXAM Hand Cream (Hypermarkets)	31.0%	Nielsen, 2024 [5]
Herborist (Department Store Channels)	5.6%	Nielsen, 2024 [5]

According to 2024 data, Jahwa China’s overall share in the domestic daily chemical market declined, and it once ranked at the bottom among the four major domestic beauty groups [2]. However, after the 2025 strategic adjustment, the company is gradually regaining its competitiveness.

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Indicator	First Three Quarters of 2025	YoY Change
Operating Revenue	RMB 4.961 billion	+10.8%
Net Profit	RMB 405 million	+149.1%
Non-Recurring Net Profit	RMB 231 million	+92.4%
Operating Cash Flow	-	+172.8%

• Q2 revenue grew
  25.4%
  year-on-year [1]
• Q3 revenue grew
  28.3%
  year-on-year, and omnichannel revenue of the beauty business increased
  2.7 times
  year-on-year [4]
• Online channel revenue of domestic business increased
  1.7 times
  year-on-year, and online revenue accounted for more than half of total revenue for the first time [4]

Indicator	Change
Accounts Receivable	Decreased 21.4% year-on-year
Inventory	Decreased 18.2% year-on-year
Gross Profit Margin	Increased by 5.1 percentage points (Q2)
Sales Expense Ratio	Decreased by 4.6 percentage points (Q2)
Logistics Expense Ratio	Decreased by 0.33 percentage points

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• ✅ Concentrate resources to build 100-million-yuan blockbuster products and improve single-product efficiency
• ✅ Optimize inventory management, with significant improvement in inventory turnover
• ✅ Reduce channel operation complexity and improve distribution efficiency
• ✅ Clarify brand positioning and avoid internal competition

• ⚠️ Excessive streamlining may lose some long-tail customers
• ⚠️ Need to balance the blockbuster product strategy and product matrix improvement

• Liushen has a stable position in core categories (mosquito repellent, floral water), with
  market share exceeding 70%
• Herborist has shown signs of recovery with
  over 50% growth
• Dr. Yu remains the leader in the sensitive skin care track
• Online channels achieved
  170% growth
  , with significantly improved efficiency

• Recovery of overall market share takes time
• Herborist’s
  5.6%
  market share in the mass skincare category is still low
• Liushen’s
  4.9%
  market share in body wash indicates room for category expansion
• The daily chemical industry is highly competitive, requiring facing dual competition from international giants and emerging domestic brands

Short-term (within 1 year)	Mid-to-long-term (1-3 years)
Consolidate achievements of 100-million-yuan blockbuster products	Build a multi-brand echelon matrix
Improve online channel efficiency	Promote high-end upgrade of brands
Optimize supply chain costs	Explore overseas expansion of domestic brands
Strengthen brand youth image	Cultivate the next growth engine

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1. Correct Reform Direction
   : The strategy of focusing on core brands, online channels, and building 100-million-yuan blockbuster products aligns with the current development trend of the daily chemical industry

2. Significant Initial Results
   : Performance reversed in 2025, with 10.8% revenue growth, 149.1% net profit growth, and Herborist’s growth of over 50%

3. Brand Recovery is Promising
   : The market success of new products such as Liushen Mosquito Repellent Egg and Herborist Fairy Grass Oil proves the effectiveness of the brand youth-oriented strategy

4. Market Share Outlook
   : Liushen has a stable position in core categories (73.3% market share); if Herborist can maintain a high growth rate of over 50%, it is expected to increase its market share to the 8-10% range in the next 1-2 years

• Whether Herborist can maintain a high growth rate of over 50%
• Whether Liushen can increase its body wash market share from 4.9% to over 10%
• Whether online channels can continue to contribute over 50% of total revenue

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[0] Jinling API - Jahwa China Company Overview (600315.SS)
[1] Securities Times - “Q2 Revenue Grows 25.4%, Jahwa China Delivers One-Year Reform Report Card” (https://www.stcn.com/article/detail/3249312.html)
[2] People’s Daily Online - Shanghai Channel - “Jahwa China Takes the First Step to Break the Deadlock, 100-Million-Yuan Products Drive New Growth” (http://sh.people.com.cn/n2/2025/0916/c138654-41352856.html)
[3] Tencent Finance - Jahwa China 2024 Annual Report and 2025 Q1 Performance Conference (https://file.finance.qq.com/finance/hs/pdf/2025/04/28/1299de38240411f08e3cfa163e39923a.pdf)
[4] Securities Times - “Jahwa China Releases 2025 Q3 Financial Report: Achieves Double-Digit Revenue Growth” (https://stcn.com/article/detail/3419110.html)
[5] Jahwa China 2024 Annual Report (https://static.cninfo.com.cn/finalpage/2025-04-25/1223275297.PDF)
[6] Eastmoney - “From Involution to Breakthrough: Jahwa China’s Strategic Breakthrough in the 2026 Daily Chemical Track” (https://caifuhao.eastmoney.com/news/20260112095853569849790)