The Six Gods or the six deities, are traditionally used in Chinese medicine as a prescription for curing heat rash and other summer ailments. The main ingredients are pearl powder and musk. In accordance with this prescription, in 1993 Shanghai Jahwa launched the Six Gods Cologne, for use in summer. With the clear product demand of preventing heat rash and itching, and refreshing the mind, the brand quickly gained 60% of the cologne market share.
Daily chemical products are a category of products with absolutely high emotional added value, which means that consumer demands have the characteristics of diversification and personalization. Through brands, consumers' attention to functional benefits and rational interests are reflected, reflecting the value, culture and personality of the product.
At the end of the 20th century, international famous daily chemical groups began to regard the Chinese market as one of the emerging sources of profit. They called the shots in the Chinese market with their mature product systems, advanced marketing promotion methods, and strong financial guarantees. For a time, the products of companies like P&G, UNILEVER, and KAO filled the shelves of stores, and consumers took pride in using these imported brands; while national brands either gradually disappeared under the intense competitive pressure, or became acquisition targets for foreign groups, and the remaining ones mostly struggled bitterly. In the shower gel market, P&G's Safeguard and Unilever's Lux became dazzling stars.
Faced with the powerful foreign competitors who came in full force, Six Gods grasped the special taste of Chinese consumers and their trust in traditional Chinese medical culture, thereby establishing a unique product positioning - a bathing lotion with Chinese herbal ingredients, which further established a strong market differentiation for itself. Under the strong offensive of Procter & Gamble, Unilever and other multinational companies, the strategy of Six Gods Shower Gel provided a beautiful explanation of how Chinese local companies can use local advantages.
Although multinational companies possess remarkable strength and prominent brands, they lack understanding of the tastes and needs of local consumers. Moreover, in order to maintain the standardization of global operations, they mainly consider the needs of developed markets in product design, and cannot provide products that satisfy the preferences of local consumers in emerging markets according to their localized needs. Their main target customer group is those urban residents who pursue fashion. Taking young people in inland China as an example, they often show great enthusiasm for everything Western. Shanghai Jahwa did not compete with foreign manufacturers for this market segment but focused its sales on a larger area: loyal customers who firmly believe in the efficacy of certain traditional ingredients, and offered relatively lower prices.
However, Six Gods has established a powerful national brand image with its distinct local brand cultural connotation.
Company Introduction: Shanghai Jahwa Company is the longest-standing cosmetics company in China, with annual main business revenue exceeding 3 billion yuan, and profitability often ranking first among peers. In the past three years, Shanghai Jahwa has maintained an annual sales increase of more than 30%, making it one of the largest cosmetic companies in China. The first bottle of two-in-one shampoo, the first can of hair styling mousse, the first bottle of mixed perfume, the first hand cream... this series of modern daily chemical products all originated from Shanghai Jahwa. The company owns two well-known trademarks in the domestic cosmetics industry, Merck and Six Gods, as well as other famous brands such as Qingfei, Lumai, Gaofu, Baicaoji, Shuxin, and Paoshao.
The success of local brand culture in resisting international brands
After the product was launched, it soon won the majority of users of Six Gods Cologne. By 1998, it had occupied the largest market share in the gradually established shower gel market in China, making Six Gods Shower Gel the top brand for summer personal wash care products in China.
Two years later, Shanghai Jahwa launched Six Gods Shower Gel, specifically targeting the Chinese summer personal wash care products market.
The launch of Six Gods Shower Gel was, on the one hand, due to the strong brand effect already possessed by the Six Gods brand in the market, aiming to maximize the value of the Six Gods brand; on the other hand, facing the challenge of multinational companies, Shanghai Jahwa grasped the special taste of Chinese consumers who trusted Chinese medicine in some areas. After analyzing the consumer group, Shanghai Jahwa launched Six Gods Shower Gel, targeting users of Six Gods Cologne and long-term favorers of traditional Chinese medicine products.