Nivea sales boom in China

By Louise Prance

- Last updated on GMT

Related tags Nivea visage Marketing Nivea

Nivea has become a market leader in the facial cleanser segment in
China, due to a boost in sales across the region.

In China Nivea Visage and Nivea For Men product lines are generating the most sales revenue according to a company press release this week.

The sales boost are helping consolidate Nivea as the number one chosen brand for facial cleansers in China, Beiersdorf, which makes Nivea, released a statement earlier this year that it intended to make China, India, Brazil and Eastern Europe a prime focus for sales growth.

The boost in sales show that both male and female consumers are becoming increasingly aware of the products, with ACNeilson data stating Nivea Visage gained a market share of 7.8 per cent, achieving fourth place position - which is expected move to third expected soon.

Nivea For Men is leading the sales boom, with a market share of 24.2 per cent of the market, surpassing competitors such as Biore and L'Oreal Men Expert range to take the number one spot.

Beiersdorf has invested substantial amounts in the development of the two brands in recent years, anticipating consumer interest in such products and market trends at an early stage.

In particular, the Nivea For Men product range is boosting the company's profile within the region, reporting a sustainable growth of 80 per cent per year, a sales boost that has consolidated its lead as the number one skin care range for men in China.

Falling just short of the impressive sales figures of the male skin care range, the Nivea Visage range increased its annual sales by more than 50 per cent, including a steady expansion of its market share.

The news comes at a pivotal time for Beiersdorf following the final realignment of its logistics network with the planned transfer of its production and product groups to Spain, Germany and Poland from Italy .

The transfer comes as part of the company's on-going consumer supply chain organisation.

The realignment began in November 2005 with the transfer of a product group from Hamburg to France, and since then the company has been continually moving branches across Europe.

The Italian branch of the company is located in Milan and generated revenue of €378m in 2006.

However, the savings from the realignment are expected to amount to over €100m per annum and, according to the company, will be used for future product developments and in "brand-building".

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