Beiersdorf plunges into Chinese hair care market
China-based C-Bons Hair Care as the cosmetics giant looks to
penetrate deeper into the fast growing market.
The international player has already achieved high double digit annual sales growth in the Chinese skin care market with its NIVEA and Eucerin brands. The investment in C-Bons Hair Care will allow Beiersdorf to complement its position in the Chinese skin care market with a stong presence in the country's hair care market. The company's Austrian affiliate, Beiersdorf CEE Holding GmbH, will pay €269.45m for an 85 per cent stake in C-Bons Hair Care. It also reserves the right to acquire the remaining 15 per cent share after a minimum period of one year for a minimum price of €47.55. As part of the transaction C-Bons Hair Care, which owns the Slek and Maestro brands, was valued at €317m. Beiersdorf CEO Thomas-B Quass: "We are very pleased to have taken another significant step forward in the China market. "C-Bons Hair Care is an ideal extension of our already successful Nivea business, adding established domestic consumer brands and strong market positions." The current president of C-Bons Hair Care, Wu Yong-nan, will become the CEO of the new business unit. Beiersdorf plans to pursue sales growth by combining its marketing, management and R&D expertise with the local knowledge of C-Bons Hair Care. The move is part of the Beiersdorf's strategy of strengthening its business activities in China, which the company identified as a priority growth market, and developing its presence in the hair care market.