After Dabao married Johnson & Johnson, it did not spend much research and development expenses on Dabao. Instead, it only made a small number of updates and channel optimizations on Dabao’s product line, in terms of product packaging and marketing. Made some minor adjustments.

This is basically the usual way of dealing with foreign capital’s acquisition of local brands. Johnson & Johnson’s attitude towards Dabao is one of marginalization, without reshaping its most critical brand image.

To put it more simply, after Johnson & Johnson acquired Dabao, it gradually "hidden" Dabao, and then used its own products to cover Dabao's market share.

Dabao Development Process

In 1985, Beijing Sanlu Factory (the predecessor of Beijing Dabao Cosmetics Co., Ltd.) produced products such as eye cream, age spot cream, slimming cream, and beauty cream. In an era of material scarcity, it sells well all over the country.

In the same year, the American company Johnson & Johnson established its first joint venture in China, and then embarked on a crazy road of product dumping and mergers and acquisitions. In 1990, Sanlu Factory launched a series of SOD cosmetics products, the most famous of which is the well-known Dabao SOD Mi. When sales were at their peak in the 1990s, tens of millions of bottles were sold every year.

In 1998, Dabao products became the sales champion of similar products in China for the first time, and won the title of "China's Well-known Trademark" in 1999. Also in this year, Beijing Sanlu Factory passed the shareholding reform and was officially renamed "Beijing Dabao Cosmetics Co., Ltd.". This was Dabao's peak period.