JALA Group: 2023 to Digitally Driven with Focusing Efficacy

We are in an era of increasing uncertainty.

A year’s plan starts with spring, and industry changes do not wait. In 2023, what new trends will emerge in the industry? Where are the new growth points in the market? Based on the upcoming 6th China Cosmetics Trend Conference on February 13, the column “Trend Talks” interviewed 50+ founders of famous companies and industry professionals from home and abroad to help open the door to the cosmetics industry with fresh perspectives. CHAILEEDO invited Zheng Chunying, chairman of JALA Group, to share with us the cosmetic trends in China.

CHAILEEDO: What has JALA Group achieved in the past 2022 years?

Zheng Chunying: In 2022, thanks to three years of continuous digital construction, organizational change, product innovation, JALA achieved sales of +2.6% year-on-year, retail terminals to maintain 43,000 and new consumer data assets of 15.04 million.

More importantly, we have also made significant gains in digital transformation, with our digital operations now accounting for 98.8%, an increase of 50.8% compared to 2019 without digital transformation, and digital retail accounting for 67.1%, an increase of 105.7% compared to 2019. Among them, CHANDO has reached 99% of digital revenue and 67.2% of omnichannel digital retail.

It can be said that digitalization has penetrated the entire chain of JALA Group’s operation and management, and our terminal network now has an online rate of 96% and BA online rate of over 80%. JALA has achieved a true sense of the digitalization of the whole area.

CHAILEEDO: In 2023, what is the development goal of JALA Group?

Zheng Chunying: We want both revenue growth, that is, the target growth of 18%. We also want substantial profit growth while high-quality growth, that is, from only sales without quality of scale growth, to quality value growth.

For this year’s development, the general keynote of the development of the JALA Group is to seek progress in a stable manner and seek changes in a stable manner. We want to achieve the “both to and also to” the goal of high-quality growth, improved efficiency is the key to the key. To do this, we need to do the following three things: make holistic organizational changes. “One Inventory” (omnichannel inventory sharing, unified deployment and visualization operations) should start to play a value in improving efficiency and reducing costs; and strengthen process management and improve performance management.

CHAILEEDO: How do you view the current industry, and what is the response of JALA?

Zheng Chunying: We are in an era of increasing uncertainty. Every day when you open your eyes, you do not know what will happen, and business risks are increasing. We should have a clear understanding of this. However, the brave do not give up because of the fear of the unknown.

French literary scholar Romain Rolland wrote in his biography of a famous person: “There is only one kind of heroism in this world, which is to love life after recognizing the truth.” And the heroism I admire is those who know that the road ahead is full of thorns, but still choose to bravely go ahead.

In 2023, we need to join hands with those who are brave enough to face the tough external situation, set higher goals and make significant changes: Digitally driven with focusing efficacy.



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