Beiersdorf aims to up its presence in the US market
basis, Germany-based Beiersdorf says it wants to up its
investment for marketing and advertising in the US market.
The company says it wants to promote two of its leading global personal care brands - Nivea and Eucerin - in a bid to grow its share of a market that is still dominated by its European sales. In an interview with the Financial Times, CEO Thomas Quaas conceded that the company was still a relatively small player in the US, adding that it current marketing plan for the country should change that. Building on US investments "Our investments in building up our brands are currently clearly above average," Quaas said in an interview with the newspaper. The company's CEO also conceded that it was considering merger and acquisition moves in the US market, but added that any such proposition should have the potential to put the company in a market leading position for the niche or category served. He also specifically stated that the company was not interested in making any sort of bid for Revlon as it does not fit with the company's criteria to acquire value-adding businesses. In 2006 the company's sales breakdown saw Europe accounting for 72.4 per cent of the company's total consumer sales, with the Americas accounting for 15 per cent and Asia accounting for 12.4 per cent. Of the total worldwide group sales, which were €5.1bn, North American sales accounted for just €324m. Nivea For Men leads the way in the US Although sales in North America have been relatively stagnant in recent years, reflecting a tough retail environment, the company has reported particularly good results for its Nivea For Men range. Indeed it is currently the market leader for men's skin care in the US, and intends to futher build on this position, after first launching in this category back in 2001 and now commanding a 28.1 per cent share of the market. However, in 2006, the company's Latin American division reported very strong sales growth of 15.3 per cent - results that are expected to be repeated this year thanks to strong economic growth within the region. Meanwhile, the company has also announced the appointment of a new chairman of its supervisory board, Reinhard Pllath, who will take up the position on April 30, this year. Pllath takes over from Dieter Ammer, also chairman of maxingvest - the company that owns a 50.46 per cent majority investment in Beiersdorf. Ammer is resigning from the position but will remain a member of the supervisory board.