Establishing a Foothold in the Chinese Market Through Strategic Partnership
"Maximizing Brand Value Beyond Securing a Simple Sales Channel"
Sanghoon Son, CEO of Jayjun Cosmetic (far right), recently visited Chongqing, China, and took a commemorative photo after signing a business agreement with local government officials and representatives from JD.com. Jayjun Cosmetic
Jayjun Cosmetic, a cosmetics specialist company, announced on the 10th that it has recently signed a memorandum of understanding (MOU) with JD.com, China's largest e-commerce company, through a strategic partnership with a local Chinese government.
This agreement was pursued to establish a foundation for Jayjun Cosmetic to enter the Chinese market comprehensively, not only by listing its products online but also by collaborating in areas such as new product development, sales, and marketing.
As of last year, JD.com recorded estimated sales of approximately 215 trillion won, making it a leading B2C (business-to-consumer) online shopping platform in China. Recently, through its "New Product Growth Initiative," JD.com has been strengthening its capabilities in new product sales and marketing by investing several billion yuan annually. The company is currently working toward the goal of developing over 600 new products, each with annual sales exceeding 100 million yuan (about 18 billion won).
Accordingly, Jayjun Cosmetic plans to maximize the exposure of its new and existing product lineups through JD.com's new product channel (JD New Products). The company aims to improve accessibility for Chinese consumers by organically utilizing various channels, including integrated online and offline marketing, social commerce, and events.
Sanghoon Son, CEO of Jayjun Cosmetic, stated, "The strategic partnership with JD.com will serve as an important milestone in enhancing our brand value, going beyond merely securing a sales channel," adding, "We will continue to lead the global beauty market through new product development and marketing based on consumer trust."
Meanwhile, Jayjun Cosmetic has earned high trust from Chinese consumers, having ranked first in the "Brand of the Year" award in the mask pack category in China for eight consecutive years from 2017 to last year. The company has also been honored with consecutive awards at the Tmall Global Brand Awards, hosted by China's largest online shopping mall, Tmall.
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