However, Liushen has established a strong national brand image with its striking localization of brand culture connotation.
After the product was launched, it quickly won the overwhelming majority of users of Liushen floral water. By 1998, it occupied the largest market share in the gradually established shower gel market in China, and Liushen shower gel became the top summer personal care brand in China.
Since the end of the 20th century, international famous daily chemical groups have begun to regard the Chinese market as one of the emerging sources of profit. With their mature product systems, advanced marketing promotion methods and substantial financial guarantees, they have dominated the Chinese market. For a time, the products of P&G, UNILEVER, KAO and other companies filled the shelves of stores, and consumers were proud to use these imported brands; while national brands have gradually disappeared under the strong competitive pressure, some have become acquisition targets for foreign groups, and the remaining ones are mostly struggling hard. In the shower gel market, P&G's Safeguard and Unilever's Lux have become dazzling stars.
The launch of Liushen shower gel is based on the powerful brand effect that the Liushen brand already possesses in the market, aiming to maximize the value of the Liushen brand; on the other hand, facing the challenge of multinational corporations, Shanghai Jahwa seized the special taste of Chinese consumers who trust traditional Chinese medicine more in some areas. After analyzing the consumer group, Shanghai Jahwa launched the Liushen shower gel, targeting the users of Liushen floral water and consumers who have long favored traditional Chinese medicine products.
Successful Blocking of International Brands by Native Brand Culture
In the "Successful Marketing - New Generation 2002-2003 Annual Brand Competitiveness Ranking" shower gel category, Shanghai Jahwa's Liushen shower gel ranked first with a 18.04% market share, surpassing the second place Lux by 10.54%. Among the top five brands in market share, the last four are all multinational company brands. The market brand loyalty of Liushen shower gel ranks second at 72.85%, and the comprehensive brand competitiveness index ranks first at 71.86%, while the second place only scores 32.14%.
Faced with the aggressive and formidable foreign competitors, Liushen has seized the special taste of Chinese consumers' trust in traditional Chinese medicine culture, and thus established the unique product positioning - shower gel with Chinese herbal ingredients, which has created a strong market differentiation for itself. Under the strong offensive of Procter & Gamble, Unilever and other multinational companies, Liushen shower gel's strategy provides a beautiful explanation of how Chinese local companies can utilize their local advantages.
Liushen or Six Gods, is the name of a traditional Chinese medicine prescription used to treat heat rashes and other summer diseases, with main ingredients being pearl powder and musk. According to this prescription, in 1993, Shanghai Jahwa launched Liushen floral water for summer use. With the clear product appeal of preventing heat rashes and itching, refreshing and invigorating the mind, this brand quickly captured 60% of the floral water market share.
Two years later, Shanghai Jahwa launched Liushen shower gel, specifically targeting the Chinese summer personal care products market.
Company Introduction: Shanghai Jahwa is China's longest-standing cosmetics company, with annual main business revenue exceeding 3 billion yuan, and profitability consistently ranking first among peers. In the past three years, Shanghai Jahwa has maintained an annual sales growth rate of over 30%, making it one of China's largest cosmetics companies. The first two-in-one shampoo, the first can of hair styling mousse, the first mixed-type perfume, the first hand cream... this series of modern daily chemical products all originated from Shanghai Jahwa. The company owns two renowned trademarks in the domestic cosmetics industry - Merck and Liushen, as well as other well-known brands such as Qingfei, Lumai, Gaofu, Baicaoji, Shuxin, and Piaosha.