Shanghai Jahwa: homegrown victor

BackgroundShanghai Jahwa (600315:SHA) is perhaps the only Chinese cosmetics maker able to compete effectively with foreign brands. The company has made the most headway with its high-end hair and skincare brand, Herborist, which it also distributes in France, as well as in China. Recently, it expanded into the 'cosmeceuticals' market, which combines cosmetics and pharmaceuticals, with its Yuze skin products. The company also holds 19% in a joint venture in China with cosmetics retailer Sephora, an affiliate of luxury goods group LVMH (MC:PAR), as well as the distribution rights for Adidas's (ADS:BER) personal care products.