Recently, there has been a rumor stating that “Kevin Chen, former General Manager of Coty China, has been appointed as the General Manager of the Beauty Division at Shanghai Jahwa.” Many netizens have also commented and discussed this news on platforms like Xiaohongshu.
Furthermore, some netizens have expressed that “Shanghai Jahwa has already issued an internal appointment notice.” In response to this, CHAILEEDO immediately reached out to Shanghai Jahwa for verification, but as of the time of writing, no response has been received. However, a reliable source close to Shanghai Jahwa has confirmed this news.
He was once the first Chinese “top executive” at Coty China.
In recent years, Shanghai Jahwa has been undergoing continuous changes, whether it’s the restructuring of its organizational framework or the announcement of its new leader, Lin Xiaohai, which reflects its determination to actively seek transformation. Kevin Chen’s addition to the company is undoubtedly an important move for Shanghai Jahwa to further strengthen its beauty business.
Upon reviewing Kevin Chen’s resume, CHAILEEDO found that he has extensive experience in the beauty industry, having held important positions in several internationally renowned beauty companies. Among them, L’Oréal stands out as a crucial milestone in his career.
Public records show that in 2012, Kevin Chen joined L’Oréal China as the Retail General Manager of L’Oréal Luxury Division, responsible for retail management, customer relations, and the formulation and implementation of operational strategies for all high-end brands under L’Oréal at that time.
At that time, with his keen market sense and accurate prediction of channels, Kevin Chen quickly developed emerging retail businesses, achieving rapid growth in just two years. Subsequently, he expanded L’Oréal China’s channels in e-commerce, Sephora, and travel retail, laying a solid foundation for the explosive growth of high-end brands under L’Oréal China in the later period.
In 2016, Kevin Chen was officially promoted to Vice President of L’Oréal China and General Manager of the Active Cosmetics Division. He began actively exploring the diversified transformation of channels, from channel construction for Shu Uemura in the Chinese market to the introduction of the new brand CeraVe. Kevin Chen played a significant role behind these initiatives.
After leaving L’Oréal, Kevin Chen became known as the first Chinese “top executive” at Coty China.
CHAILEEDO noted that in March of last year, at the launch ceremony of the Lancaster “Youthful Radiance” series, a high-end skincare brand under the Coty Group, Kevin Chen made his first appearance as the General Manager of Coty China. However, just over four months later, Kevin Chen suddenly stepped down from important positions such as the legal representative of Coty (China) Investment Co., Ltd., with his tenure as the legal representative of Coty China calculated to be only 95 days.
Shortly thereafter, Coty China exclusively confirmed to CHAILEEDO the news of Kevin Chen’s departure. Due to the short duration of his tenure, speculations arose in the public regarding Kevin Chen’s sudden departure, but neither Coty China nor Kevin Chen himself provided any response to these speculations.
With the news of Kevin Chen joining Shanghai Jahwa, it signifies the beginning of a new career in the beauty industry for him. It also means that after the departure of the former Chairman and CEO, Pan Qiusheng, Shanghai Jahwa has welcomed another executive from the L’Oréal group.
Shanghai Jahwa may value Chen Min’s experience in online business.
Chen Min’s addition to Shanghai Jahwa is not without a trace. His rich experience in online channels and high-end beauty has become an important resource that Shanghai Jahwa urgently needs for its current transformation.
CHAILEEDO noticed that at the Shanghai Jahwa 2023 Annual Shareholders’ Meeting held in June this year, the new leader of Shanghai Jahwa, Lin Xiaohai, made his debut and expressed his ambitions for positive changes.
Regarding the current importance of online platforms in the beauty industry, Lin Xiaohai believes that Shanghai Jahwa first needs to break through in online capabilities, explore new forms of e-commerce, strengthen traditional e-commerce, and emphasize that decision-makers must have “online thinking.”
“From CEOs to brand managers, those in decision-making positions, we need to have online thinking ourselves. Therefore, we need to ensure that decision-makers have online thinking through organizational adjustments, job rotations, training, and other methods,” said Lin Xiaohai.
Many of Chen Min’s achievements during his tenure at L’Oréal are also related to online channels. For example, he led the strategic move of Shu Uemura entering the online market and drove the growth of high-end brands under L’Oréal in China. In addition, Chen Min also founded My Beauty Box, a new e-commerce brand under L’Oréal. However, this business was closed last year.
In addition, since the second half of 2023, Shanghai Jahwa has determined a strategy to focus on categories with high gross profit, high growth rates, and high brand premium. This strategy aligns well with Chen Min’s rich experience in managing high-end beauty businesses at L’Oréal and Coty.
At the same time, Shanghai Jahwa has been continuously adjusting its organizational structure to improve operational efficiency. In October of last year, Shanghai Jahwa announced the establishment of the Beauty and Skincare Division, the Personal Care and Home Care Division, and the Overseas Division to enhance operational quality, activate organizational efficiency, and accelerate business growth. These divisions serve as decision-making bodies and are responsible for performance results.
According to a post by Shanghai Jahwa in March of this year, Zhang Xiaojuan serves as the General Manager of the Beauty and Skincare Division, Ye Weimin is the General Manager of the Personal Care and Home Care Division, and Wang Yi is the Director of the Overseas Division.
In particular, after Lin Xiaohai took office, he explicitly stated that he would deepen the reform of the divisions, further promote organizational structure adjustments, and mentioned that the company would recruit externally for high-quality talents in areas where the company lacks them or where there is a significant gap compared to the market industry. Therefore, Chen Min’s addition may also be an important part of Shanghai Jahwa’s organizational adjustment process.
In the second half of the year, Shanghai Jahwa aims to “achieve victories.”
In April of this year, Shanghai Jahwa released its financial report for the first quarter of 2024. The report showed that the operating income was 1.905 billion yuan, a year-on-year decrease of 3.76%, and the net profit attributable to shareholders was 256 million yuan, a year-on-year increase of 11.18%. This indicates that the strategic transformation is starting to show results.
However, taking a longer-term perspective, Shanghai Jahwa still faces significant challenges. Particularly due to the weak growth in performance last year, it lost its position as the leading domestic cosmetics company, raising concerns about its future development.
In the current highly competitive environment, Lin Xiaohai, the CEO of Shanghai Jahwa, recognizes the importance of confidence for the company. He publicly expressed his hope for the second half of the year, stating, “I hope we can achieve several victories, even if they are small victories. It is an important encouragement for Shanghai Jahwa at present.”
As a well-established Chinese cosmetics group with many renowned brands such as Herborist, Dr. Yu, Liu Shen, and Maxam, there is considerable interest in how Lin Xiaohai will rejuvenate these brands and bring them back to a growth trajectory.
During the annual shareholders’ meeting, Lin Xiaohai classified Shanghai Jahwa’s brands into different tiers. He stated, “The first tier consists of Liu Shen and Dr. Yu, which are competitive and have clear brand positioning. We will address some of the issues in their execution. The second tier includes Maxam and Herborist. We aim to make these brands the ultimate cost-effective choices for Chinese consumers and further expand market share. The remaining brands need to be redefined as they currently face significant challenges. It will take some time to see changes.”
Lin Xiaohai also revealed that the focus for the second half of the year will be on market share and competitiveness on the user side. The company will continue to deepen the reform of its divisions. In terms of brand strategy, they will prioritize resources and streamline priorities in the short term. Regarding channel strategy, they will continue to operate on multiple platforms and channels, with a particular emphasis on breakthroughs in interest-based e-commerce.
It is evident that Shanghai Jahwa, a century-old company that has witnessed numerous successes in the Chinese beauty industry, is now actively undergoing transformation, aiming for upward growth and a solid foundation. As Lin Xiaohai expressed during the shareholders’ meeting, “Any reform may bring short-term disruptions. I hope shareholders and the public can have a longer-term perspective and give us more time.” Whether Chen Min’s addition can further contribute to Shanghai Jahwa’s beauty business remains to be seen and will be tested over time.
