7. Beiersdorf
Germany
www.beiersdorf.com
Beauty sales: $5.4 billion
Corporate sales: $6.4 billion
Key Personnel:
Thomas B. Quaas, corporate development/corporate communications; Peter Kleinschmidt, HR, administration, environmental protection; Pieter Nota, marketing, R&D, sales; Dr. Bernhard Duttman, finance, controlling, IT; Markus Pinger, purchasing, production, logistics.
Products/Brands:
Cosmetics and toiletries marketed under eight brands: Labello, 8x4, Juvena, Elastoplast/Hansaplast, Nivea, La Prairie, Eucerin and 8x4.
New Products: The anti-age-range Nivea Visage DNAge, Nivea Baby Wipes, Nivea Sun Light Feeling Lotion, Nivea Bath Care Happy Time Shower, Nivea Body Good-bye Cellulite gel-cream.
Comments:
Strong sales continue at Beiersdorf, where corporate sales for 2006 were $6.4 billion (at current exchange rates). Nivea, the largest skin care brand in the world, is the company’s flagship, with sales of $4.3 billion in 2006.
Corporate sales and sales of cosmetics and toiletries each rose more than 7% last year. Within the cosmetics and toiletries business, Europe accounted for 72.4% of sales, followed by Americas (15%), and Africa/Asia/Australia (12.6%). Sales were up in all regions.
In Europe, sales rose 6%. While sales in Germany were essentially flat, sales in UK/Ireland rose 10.4%. Also posting good gains were the Nordic Group (+9.8%) and the La Prairie Group (+9.7%).
Nivea DNAge Cell Renewal is one of the newest skin care offerings from Beiersdorf.
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But the best news came from China, where Beiersdorf has invested heavily in Nivea’s growth during the past two years. In 2006, sales in China of Nivea Visage increased 50%. In just three years, Nivea for Men became the No. 1 brand in China’s men’s face care segment. The men’s line was also behind an 18% sales surge in Eastern Europe, led by a gain in Russia, where Nivea for Men, Nivea deodorant and Nivea hair care led the way. The range of men’s products was also launched in India. Elsewhere in Africa/Asia/Australia, Thailand reported a 16.8% gain, while sales in Japan declined.
In the Americas, sales rose 7.5%, helped along by a 15.3% gain in Latin America. Sales in Brazil and Mexico rose 9.3% and 12%, respectively. Meanwhile, sales in Colombia and Venezuela surged 53.1% and 36.1%, respectively. Best sellers in the region included Nivea Bath Care, Nivea Sun and Nivea Body.
By brand, global sales of Nivea rose 8.3% last year. The company credited Nivea Sun, Nivea deodorant, Nivea for Men and Nivea Body for much of the gains. Furthermore, Eucerin sales rose 10.6%, driven by demand for products in the dry skin segment and the successful integration of Eucerin Hyaluron-Filler face care products. Sales of La Prairie jumped nearly 10%, helped along by the debut of La Prairie Anti-Aging Complex.
The new range of Nivea Visage DNAge is being championed for future growth in the all-important anti-aging market. Nivea Visage Oxygen Power, billed as the first skin cream to integrate pure oxygen into a cream formula, may be the product with the most buzz. According to Nivea, skin cells should be optimally supplied with oxygen. Tests have shown that cell activity quickly triples after receiving this burst of oxygen, increasing cell division by up to 20%.
Beiersdorf invested nearly $120 million in consumer R&D in 2006. The company also continues to create new concepts in retail. In Milan, the company opened a short-term Nivea shop to provide a beauty area in which consumers receive advice from experts on topics such as styling and makeup. More than a year ago, Beiersdorf opened Nivea Haus in Hamburg, Germany, which offers a range of wellness and spa treatments; and in June, the company opened La Prairie Silver Rain Spa in the Cayman Islands.
In the U. S., retail group Wal-Mart presented Beiersdorf with its “Supplier of Excellence” award for the first quarter of 2007. In Greece, Nivea Sun was awarded the “Prix de Beauté 2007” as the best sun care product. In addition, the launch of Nivea Visage DNAge day cream in Portugal won the “Master of Distribution 2007” prize in the “cosmetics and perfume products” category.
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