Beiersdorf says skin care will remain its focus in emerging markets
The company is undergoing some significant restructuring at the moment, choosing to re-focus its business strategy around its flagship brand, Nivea, as well as its core capabilities in the area of skin care.
Dr. Rudolph points the fact that Nivea remains the world’s leading skin care brand. citing data from market researcher Euromonitor, that skin care will continue to be the key growth area within the cosmetics and toiletries category up to 2015.
BRIC markets continue to power ahead
Euromonitor believes that this trend will be even more pronounced in the markets of Brazil, Russia, India and China (BRIC) in the coming years, given the extraordinary rates of economic growth and consumer spending power.
Acknowledging the fact that the BRIC markets will remain a key focus, Dr. Rudolph also added: “To keep our leading position we will focus on our key competence area of skin care. However, we will also be active in skin care related categories like deodorant or bath care.”
However, each of these individual markets has very different characteristics, both with respect to the way business is carried out and consumer trends and behavioural patterns.
BRIC markets have significantly different consumer patterns
“There are similarities as well as specific differences in consumer consumer attitudes and behaviour in those regions,” said Dr. Rudolph. “For example, it is important to consider the very different beauty habits in Brazil, masculinity in Russia, as well as face care regimes in Asia.”
Indeed, Dr. Rudolph’s presentation at the Skincare Ingredient 2011 conference will go in to significant detail with regards the key similarities and differences between the BRIC markets.
Obviously it is the differences in these markets that means any company considering a move into these markets, or expanding into new areas, absolutely have to do their homework if they are to execute a successful business strategy.
Do your homework!
“Make sure you have a thorough understanding of consumers, customers and market dynamics for each of those countries. There are regional differences which are crucial to consider,” said Dr. Rudolph.
The focus is not entirely on the BRIC markets though. Dr. Rudolph stressed the fact that Beiersdorf is also targeting growing regions such as Eastern Europe, South East Asia and Middle East, which could steal some of the thunder of the BRIC markets in the future, as they start to show signs of maturation.
Dr. Rudolph will be giving his presentation as part of the conference segment ‘Core Opportunities for Skincare in the BRIC Markets’, alongside another presentation by Virginia Lee of Euromonitor, who will be giving an overview of the market.
Put this date in your diary and suscribe to the event
The presentation will be at 9pm – 10pm CEST Europe/Paris (3pm – 4pmEDT New York) on June 15, and will include an opportunity for the audience to virtually participate in the conference by fielding questions through the chat windows that accompany the presentation.
For further details about the industry’s first ever Virtual Trade Show, Skincare Ingredients 2011, and the accompanying conference programme, please click here.