Beiersdorf plans investments in the ‘high double-digit millions’ for Nivea

By Katie Nichol

- Last updated on GMT

Related tags Investment Beiersdorf Nivea

In line with its ‘Focus on Skin Care. Closer to Markets’ strategy, German cosmetics company Beiersdorf has announced plans to make significant investments in its mass market Nivea brand in 2011, in order to strengthen its long-term position.

Cora von Meysenbug, director of corporate communications for Brands & Supply Chain at Beiersdorf, told that the company plans to systematically enhance its skin care expertise, which will allow Beiersdorf to participate in the growth of the fastest developing segment of the global cosmetics market.

“We initiated a package of measures which relates to a global marketing investment program. One key item here is the significant investment planned for Nivea in this year, which is in the high double-digit million range. We are focusing our innovations on the key categories of face and body care, in line with our ‘Focus on Skin Care. Closer to Markets’ strategy,” ​she said.

Nivea is sold in over 200 countries and generated sales of €6.19bn in 2010. Nivea achieved organic growth of 1.8 percent worldwide in 2010, while Beiersdorf’s Eucerin and La Prairie brands achieved growth of 7.5 per cent and 9 per cent respectively.

Nivea Pure & Natural launch taps into natural cosmetics trend

As part of its renewed focus on skin care, Beiersdorf launched the Nivea Pure & Natural face and body care line in January 2011 across 25 countries, the majority of which are in Europe but also in Latin America.

“The cross category launch of Nivea Pure & Natural positions Beiersdorf in the growing natural cosmetics market and meets the wishes of many consumers for natural yet highly effective skin care products,” ​said​von Meysenbug.

Beiersdorf plans to launch a number of new products across its skin care brands in the coming year, although no further details have been given as yet.

Withdrawal of colour cosmetics products

The package of measures and investments planned for 2011 also includes the streamlining of Beiersdorf’s product portfolio, resulting in the withdrawal of the Nivea colour cosmetics range in several markets.

“Beiersdorf has decided to exit the decorative cosmetics business in Germany, which no longer forms part of its strategic focus here. After an in-depth review, a number of other Beiersdorf affiliates in addition to Germany have decided to exit the decorative cosmetics business,” ​said von Meysenbug, stating that Switzerland, Portugal, Greece, and Turkey are amongst the countries in which the Nivea colour cosmetics line will be withdrawn.

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