China's cosmetics business Jala Group will expand into local metropolitan cities after 10 strong years in smaller cities; slightly increased market share, hike in Beijing, Shanghai, Shenzhen sales in 2010 foretells success

Michelle Rivera

LOS ANGELES , September 8, 2011 (Industry Intelligence) – Chinese cosmetics maker Jala Group Inc. will begin selling products in China’s metropolitan cities after 10 years of strong growth in the country’s smaller cities, China Daily reported Sept. 5.

Company President Zheng Chunying said the company cannot limit its distribution any longer or its brands will suffer.

The company sells its products across 31 provinces and cities in 23,000 outlets that include department stores, pharmacies and supermarkets.

Its Chcedo and Maysu brands have gained a huge local following after they received endorsement from Taiwan’s pop star Vivian Hsu and film star Shu Qi, respectively. Jala’s Aglaia and Insea brands are also gaining in popularity.

While double-digit growth for China’s private cosmetics market has been a struggle, Jala has reported an 80% average growth rate in the past five years. In 2010 the company was ranked 12th by the Euromonitor International for its beauty and personal care market share, the news service reported.

Jala saw sales spike from January to May after products went on sale in metropolitan cities. Beijing reported the highest with 76%, closely followed by Shanghai with 60% and Shenzhen with 40%.

In Beijing, its Chcedo BB cream sold out in a week.

While the company’s final goal is to go international, it is in no rush to list an IPO, Chunying said.

The primary source of this article is China Daily, Beijing, China, on Sept. 5, 2011.

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