Issue 25
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Category		Title		Author
Market Report		Beiersdorf: The beauty of strong branding		Julie Forster

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


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