Recently, CHAILEEDO exclusively learned that Pan Qiusheng, the former Chairman and CEO of Shanghai Jahwa, has joined DCH Holdings as an executive director. CHAILEEDO reached out to Pan Qiusheng for confirmation, and he verified the news.
According to the DCH Holdings official website, DCH Holdings was founded in 1949 and is headquartered in Hong Kong, China. It is an Asian diversified automotive and consumer goods distribution company, with operations spanning across 13 Asian countries and regions.
Since leaving Shanghai Jahwa in May this year, there has been considerable attention on Pan Qiusheng’s “next destination.” Now, it appears that Pan Qiusheng has embarked on a new chapter in his career.
Pan Qiusheng is fully involved in the company’s strategic planning and operational management.
CHAILEEDO noticed that after Pan Qiusheng left in May this year, there were reports in the media suggesting that he might have decided to start a new career in Hong Kong, but this information was never confirmed.
Recently, CHAILEEDO learned from the DCH Holdings Group’s official website that Pan Qiusheng has taken on the role of executive director at DCH Holdings, “fully participating in the strategic planning and operational management of the company, driving the company towards long-term development,” which undoubtedly confirms previous speculations. An insider revealed, “Pan Qiusheng joined DCH Holdings in June.”
Furthermore, Pan Qiusheng’s personal introduction page mentions that he has held leadership positions in several globally renowned consumer goods companies, with over 20 years of experience in the consumer markets of China and the Asia-Pacific region, possessing rich industry experience and profound strategic thinking.
Public records show that in April 2020, Shanghai Jahwa appointed Pan Qiusheng as the CEO and General Manager of the company. Prior to this, he held executive positions at several well-known consumer goods giants such as Swire Coca-Cola, Danone, and L’Oreal, accumulating an impressive track record in the consumer goods industry.
Drawing on his two decades of experience in the consumer goods industry, shortly after taking office at Shanghai Jahwa, Pan Qiusheng proposed the “123 Operational Policy,” focusing on consumer-centricity, brand innovation, channel advancement as the two pillars, and culture, systems & processes, and digitalization as the three accelerators. Starting from this point, he led several transformations in Shanghai Jahwa’s research and development, products, and channels.
At the end of last year, Pan Qiusheng once again drove an organizational restructuring at Shanghai Jahwa, transitioning from the original functional structure to a divisional structure consisting of the Beauty & Skincare and Baby Care Division, Personal Care & Home Care Division, and Overseas Division. However, despite these efforts, Shanghai Jahwa, which lost its leading position in domestic cosmetics last year, seems to still be struggling to truly overcome its challenges.
So, after bidding farewell to Shanghai Jahwa, what is the background of Pan Qiusheng’s new employer, DCH Holdings?
Public records show that DCH Holdings was founded by the founder of Hang Seng Bank, with its main business divided into two segments: automotive and consumer goods. In 2007, DCH Holdings successfully went public on the Hong Kong Stock Exchange, followed by a privatization delisting in January 2020.
In terms of its automotive business, DCH Holdings collaborates with over 20 world-renowned brands, engaging in automotive distribution and import operations, and providing a wide range of automotive-related services, including leasing, maintenance, and spare parts trading. DCH Holdings’ consumer goods business covers the entire supply chain, distributing food, fast-moving consumer goods, healthcare, and electrical products, and leveraging its robust internal logistics network to offer extensive marketing, regulatory, and supply chain services.
It is worth mentioning that in 1991, DCH Holdings became a member of CITIC group, subsequently becoming a wholly-owned subsidiary indirectly held by CITIC group, which means that DCH Holdings became a bona fide state-owned enterprise.
According to the most recent financial report before delisting, the automotive business is the largest revenue source for DCH Holdings. In the first half of 2019, DCH Holdings’ operating income was 23.821 billion Hong Kong dollars, with the automotive business accounting for 18.242 billion Hong Kong dollars. In 2018, DCH Holdings’ total annual revenue was 50.878 billion Hong Kong dollars.
“The new employer” had deep cooperation with Shiseido, and in the future, it does not rule out strengthening its cosmetics business.
So, with Pan Qiusheng joining DCH Holdings, what kind of sparks will the two create?
CHAILEEDO noticed that DCH Holdings has a deep connection with the cosmetics industry, having had deep cooperation with Shiseido. According to the Shiseido official website, in 1962, Shiseido began selling cosmetics in Hong Kong through DCH Holdings. In 1998, the two cooperated to establish Shiseido DCH Holdings Cosmetics Limited (referred to as “Shiseido DCH Holdings Company”), with each holding 50% of the shares. The main business was selling Shiseido products in Hong Kong, Macau, and Guangdong. In 2010, Shiseido invested HK$500 million to acquire the 50% stake held by DCH Holdings in Shiseido DCH Holdings Company, eventually fully owning Shiseido DCH Holdings Company.
Furthermore, DCH Holdings’ subsidiary, Wellcome Market Development Limited, has over 50 years of experience in the fast-moving consumer goods industry, including sales, marketing, and distribution of personal care, home, beauty, and cosmetics products.
Based on their mature cooperation with Shiseido in the past and the addition of Pan Qiusheng, who brings rich experience in the cosmetics industry, does this mean that DCH Holdings will focus on cosmetics? An insider mentioned, “Specific strategies are currently uncertain, but the possibility cannot be ruled out in the future.”
Overall, Pan Qiusheng has rich management experience in various fast-moving consumer goods categories such as beverages and beauty, which aligns well with DCH Holdings’ diversified layout in the fast-moving consumer goods sector. His familiarity with the mainland market can also help DCH Holdings achieve greater success in the mainland. Additionally, the anticipation is high as to whether Pan Qiusheng, with his extensive experience in the beauty industry, will lead DCH Holdings to make further moves in the cosmetics sector, sparking excitement in the industry.
