Johnson & Johnson (China) Investment Co Ltd bought Beijing Dabao Cosmetics Co Ltd in a bid to further expand its presence in the Chinese market.

The subsidiary of the US -based consumer goods giant Johnson & Johnson acquired Dabao from Beijing Sanlu Factory and Beijing Dabao Co Ltd Staff Shareholding Committee. The deal is estimated at more than $300 million.

Johnson & Johnson won a bidding war with Avon and Unilever to acquire the company and will pay $337 million for Dabao.

"This transaction is an extension of our commitment to China, and to the continued development of China's consumer healthcare sector," said Jesse Wu, president of Johnson & Johnson (China) Investment Co Ltd.

"Dabao is a successful brand in the Chinese market. We are very pleased to add the well-known and respected Dabao brand to our growing portfolio of healthcare brands in China," he added.

However, there are concerns that international enterprises are invading China's household brands in the personal care industry. There are fears that China will lose more and more national brands in the future.

However, a source with Dabao said that the company's brand and brand-name products will remain.

Yang Zhigang from the Beauty and Cosmetics Chamber with the All-China Federation of Industry and Commerce told the Beijing News that the purchase of Dabao by Johnson & Johnson should not be regarded as a business failure, instead, it shows that China's household and personal care industry is gradually getting closer to reaching maturity and entering a capital era.

According to statistics, Dabao's sales reached 780 million yuan in 2005, accounting for 1 percent of the market share. Its sales declined to 676 million yuan in 2006.

"It is a wise decision for Dabao to get out of its current situation at a time when it still holds a renowned brand," Yang said.

（英语点津 Helen 编辑）

Brendan joined The China Daily in 2007 as a language polisher in the Language Tips Department, where he writes a regular column for Chinese English Language learners, reads audio news for listeners and anchors the weekly video news in addition to assisting with on location stories. Elsewhere he writes Op’Ed pieces with a China focus that feature in the Daily’s Website opinion section.

He received his B.A. and Post Grad Dip from Curtin University in 1997 and his Masters in Community Development and Management from Charles Darwin University in 2003. He has taught in Japan, England, Australia and most recently China. His articles have featured in the Bangkok Post, The Taipei Times, The Asia News Network and in-flight magazines.