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Issue
25 — May 2001 |
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Beiersdorf was established in 1882 in Hamburg. In 1999 the company recorded
total group sales of DM7.1bn (3,64 bn euros), up 8.7% on the previous year's
figure. Its business is split into three divisions: cosmed (cosmetics and personal
care), medical (wound care, dermatology, orthapaedics and phlebology) and tesa
(adhesive tapes), which is to be spun off as as separate joint stock company
in the near future. Today, the company's products are sold in well over 100
countries spanning Europe, Africa, North America, Latin America and Asia.
| Beiersdorf |
| Established:
1882 |
| 1999
sales: DM7.1bn (3,64bn euros) |
According to European Cosmetic Markets, in 1999 Beiersdorf accounted for around
6% of total cosmetics and toiletries sales across France, Germany, Italy, Spain
and the UK, placing it joint third in the rankings in this region, alongside Procter
& Gamble and behind L'Oréal and Unilever. Estimates in this report
suggest that in 1999, Beiersdorf led the body care market across those five countries,
was second in sun care and third in facial skin care (1).
Without a doubt, Beiersdorf's strength in cosmetics and personal care is built
around the Nivea brand. However, Nivea is backed up by a number of other brands
in the mass market and the company is also present in the selective channel through
La Prairie and Juvena.
In fiscal 1999, the company spent some DM155mn (79,25 euros) on research and development,
of which the cosmed division accounted for 49.3%. Perhaps the company's most significant
recent innovation was the skin care ingredient co-enzyme Q10. First introduced
to its Juvena subsidiary through the Rejuven Q10 brand, co-enzyme Q10 is a bio-activator.
Q10 is found in living cells - it is also used as a dietary supplement - where
it aids the conversion of food into energy as one of the driving forces in the
so-called "energy factories" (mitochondria) of the cells. In skin care
Q10 is said to supply long-lasting moisture and protect against free radical and
other environmental damage. The amount of Q10 produced by the body diminishes
over the years; the less Q10, the slower the flow of energy, and the slower the
rate of cell regeneration. Q10 was later added to Beiersdorf's Nivea Visage, Nivea
Vital, Nivea Body, Nivea Sun and Eucerin brands.
The Nivea brand was born in 1911 when the company developed the world's first
water-in-oil emulsion; this was said to be favoured by consumers over the ointments
which were commonplace at the time. There has been little change to this tried-and-tested
formulation which remains on-shelf today under the name Nivea Creme. However,
the brand has since been stretched and moved into other skin care categories and
related product areas. Nivea Creme is a general purpose moisturiser, and perhaps
its closest neighbour is Nivea Soft which is a light, quickly absorbed oil-in-water
general purpose emulsion which incorporates vitamin E and jojoba oil to leave
the skin hydrated and comfortable.
In facial skin care, Nivea is represented by two brands: Nivea Visage, its comprehensive
range of products for all skin types and all stages of the skin care regime, and
Nivea Vital, a cleansing and care line designed to meet the specific requirements
of mature skin. Nivea Visage products include cleansers and facial washes, makeup
removers, toners, day creams, night creams and specific treatments. Nivea Vital
also provides a complete skin care regime. Vital products incorporate nutrients,
vitamins and co-enzymes to promote cellular activity and thereby to aid the regenerative
process of mature skin.
According to industry sources, in the facial skin care category, Nivea leads the
market in France, Germany and Italy. In Spain it is ranked fourth and in the UK
it is fourth among moisturisers but less high in the cleanser category.
In recent times, facial skin care sales have been boosted by developments in the
area of cleansing, specifically with the arrival of cleansing wipes and deep cleansing
strips. Beiersdorf has been a key player in both of these categories. In 1998,
Beiersdorf signed an agreement with its long-term Japanese joint-venture partner
Kao Corporation to roll out Bioré Pore Perfect Deep Cleansing Strips to
Europe under the Nivea Visage label following their success under the Kao Jergens
name in Japan, the US and the UK. The line has since been expanded with strips
for use on different areas of the face and with those specifically designed for
men.
In the moisturiser category, Beiersdorf has been focusing on the ingredient co-enzyme
Q10. Its Nivea Visage line currently includes Anti-Wrinkle Q10 repair creme, plus
a night cream version and a co-enzyme Q10 treatment for the eye area. The company
first launched Anti-Wrinkle Q10 Repair Creme in spring 1998.
More recently the company extended its Nivea Visage line with 
-Alpha
Flavon, an anti-ageing treatment for women aged over 25. The product's ingredients
are said to offer ten times greater protection than vitamin E. The formula includes
alpha flavon, vitamin C and UVA/UVB filters to protect against premature ageing,
neutralise free radicals, strengthen the skin's own protection system, prevent
the formation of fine lines and wrinkles and moisturise the skin. Alpha flavon
is a natural flavonoid that includes petals from the Japanese pagoda tree which
protect against free radicals.
Other facial skin care lines include Basis pH (cosmed) and Eucerin, which is grouped
under the company's medical division.
In the body care market, Beiersdorf has developed Nivea Body, which brings some
of the latest advances in this category to the mass market. It aims to offer the
right treatment for every skin type and to address specific needs. Formats include
milks, lotions, balsams and oils as well as products for use before and after
hair removal. Industry sources suggest that Nivea leads the overall body care
market in France, Germany, Italy, Spain and the UK.
Beiersdorf has added a number of new products to its Nivea Body line recently.
These include Body Firming Lotion Q10 with co-enzyme Q10; Soothing Body Moisturiser
with natural plant extracts for sensitive dry skin; Exfoliating Body Scrub with
vitamin E and bisabolol; and Moisturising Body Spray, a moisturiser in an easy-to-apply
spray format with natural caring lipids.
In the body care market, Nivea is backed up by Atrix hand care (known as Atrixo
in the UK) and by Labello lip care. Atrix was first developed in 1955 and today
is the number one hand care brand in the UK and Germany. It is second in Spain
and third in Italy. Labello was unveiled in 1909 when it was heralded as the first
lip care product in a push-up tube.
Other body care products are marketed under Basis pH and Eucerin.
Nivea does not stop protecting the body when the sun comes out. Its Nivea Sun
range provides protection for all skin types and consumer groups, with products
designed specifically for babies and children and for those with sensitive skin.
Products protect against UVA and UVB rays and are backed up by a full line-up
of aftersuns and self-tanners.
In sun care, Nivea is the market leader in Germany, Italy and Spain. It is second
in France, behind Laboratoires Garnier/L'Oréal's Ambre Solaire and third
in the UK behind Ambre Solaire and retailer Boots own brand, Soltan.
For 2000 Beiersdorf added the benefits of co-enzyme Q10 to its Nivea Sun line
with the launch of Nivea Sun Q10 After Sun Cream, an aftersun for use on the face
which helps prevent both the short-term effects of sun exposure, such as sunburn
and dryness, and the long-term damage of UV photo-ageing.
The company clearly recognises that men are becoming increasingly significant
as consumers of cosmetics and toiletries and offers them a full skin and body
care portfolio. Men's products span shaving preparations and aftershaves, facial
skin care and cleansing, deodorants, bathroom products and hair. In all of these
categories the focus is clearly on skin-friendly offerings. Shaving products are
formulated for different skin types and facial skin care products address the
fact that men's skin is very different to women's. In 2000, Beiersdorf looked
to men when it added to its existing Kao Bioré Clear-up Strips with a variant
designed specifically for men.
In the men's lines market, the company is also represented in the mass market
by the Gammon grooming line.
Beiersdorf's medical division also has a presence in the cosmetics and toiletries
market through its Eucerin therapeutic skin care range, which includes creams,
lotions and bathroom products for the treatment of excessively dry skin and eczema.
Most Eucerin products incorporate urea which binds moisture into the skin to keep
it smooth and supple. This is said to reduce the cycle of irritation and itching,
rehydrating the skin and reducing the likelihood of future flare-ups. The company
has also launched sub-lines to its Eucerin range, including Eucerin Reife Haut,
a sub-range for mature consumers. The Eucerin brand also includes sun protection
products.
Beiersdorf's prestige divisions, La Prairie and Juvena both have long histories.
La Prairie, which is marketed as "the world's most luxurious, most advanced,
skin care and beauty", was set up in the 1930s when Professor Paul Niehans,
a celebrated Swiss surgeon set up Clinic La Prairie in Switzerland. There he developed
a revolutionary cellular therapy to retard the effects of ageing. The company
was acquired by Beiersdorf in 1991. La Prairie products are divided into a number
of collections, including Cellular Daily Essentials and "Cellular" specific
treatments; Age Management Series, a range of anti-ageing treatments; Skin Caviar
Collection; Suisse De-Sensitizing Systeme; Soleil Suisse, a sun care line; colour
cosmetics; and fragrances. Many of La Prairie's sun care and colour cosmetics
products also incorporate its cellular technology.
Juvena was founded in the 1950s as Labor Divapharma in Zurich, Switzerland. At
the time the company was made up of a team of scientists interested in the cell
regeneration process who collaborated with Swiss skin care specialists to develop
a range of products.
Juvena was bought by Beiersdorf in 1990. Juvena products fall into eight areas.
Rejuven Q10 is a range of facial and body skin care products which incorporate
Beiersdorf's co-enzyme Q10 technology. Juvenance is an anti-ageing system said
to give the skin youthful radiance, smoothness, freshness and well-being. Personal
Skin Collection is aimed at a younger consumer group and promises problem solutions
for every skin type. Exclusives is an anti-ageing line for mature skin. Sunsation
is the division's sun care line, Body Results is its body care collection and
it also includes a colour cosmetics line. Additionally, the male consumer is addressed
through its Discover range. Discover products are designed specifically for men's
skin and include cleansing items, aftershaves, nourishing treatments, body and
hair care and fragrance. The co-enzyme Q10 ingredient has also been added to a
Discover product, Q10 Just Energy.
It is clear that there is more to Beiersdorf than Nivea but an important factor
in the company's success is that all of its business strands complement each other
and share the same expertise. What's more, few companies in this industry can
boast an umbrella brand with quite the coverage of Nivea, in terms of product
categories and regional markets. Although some might say that Beiersdorf would
do well to broaden its brand offering in the cosmetics and toiletries sector,
its strength across Europe, and globally is proof of the value of a clearly focused
strategy.
Reference
(1) European Cosmetic Markets, August 2000, European Overview
Author
Julie Forster was previously editor of the monthly trade magazine European Cosmetic
Markets, published by UK-based Wilmington Publishing. European Cosmetic Markets
focuses on retail trends in the major European markets, providing in-depth data
on the main cosmetics and toiletries categories, alongside company profiles, regional
reports and all the latest news and new products. Contact: Wilmington Publishing;
Tel: +44 20 7549 8626; Fax: +44 20 7549 8622; email: ecm@wilmington.co.uk. Website:
www.cosmeticsbusiness.com
