Shanghai Jahwa sells assets with view to investing in international cosmetics market

China state-run company Shanghai Jahwa is selling assets to the tune of nearly €550m with a view to investing in the international luxury cosmetics market.

According to a Bloomberg report, the Group intends to divest part of its business to Chinese investor Ge Wenyao,in an effort to grow its footprint in the growing market for luxury cosmetics in China.

The company, which markets the GF men's groomng range and the Herborist brand in China, stated that its current stake in the domestic market for beauty products is still far from fulfilling its full growth potential.

Euromonitor currently estimates that the company has a 1.6 per cent stake in the China cosmetics industry, a share of the market that is expected to grow to around 58 per cent by 2015, growth that will place it alongisde some of the biggest international players.