Beiersdorf grows e-commerce presence in China

By Natasha Spencer

- Last updated on GMT

Beiersdorf grows e-commerce presence in China
German personal care company, Beiersdorf, enters into a strategic partnership with a leading online retail platform for imports in China, NetEase Kaola.

In light of the recent partnership, Dr Peter Tschentscher, Hamburg’s First Mayor emphasises the importance of trade relations between Germany and China.

E-commerce partnerships

After teaming up with other leading e-commerce platforms, JD.com and Alibaba, Beiersdorf has now partnered with China’s cross-border trade platform, NetEase Kaola. Since its inception in 2015, NetEase Kaola has hit high double-digit growth rates due to the hike in import goods in China.

Zhang Lei, CEO, NetEase Kaola and Ralph Gusko, Board Member for Asia and Brands, Beiersdorf met in the Hamburg City Hall to confirm their strategic alliance, along with Peter Tschentscher, Mayor of Hamburg.

This partnership provides over 900 million users with the access to Beiersdorf with NIVEA. Through its access to the market with its NIVEA brand, the partnership is expected to increase its market share.

In 2017, Beiersdorf grew by 80.6% compared to the previous year, General Administration of Customs (GAC) China in February 2018, reported.

Germany and China

“The Senate supports and promotes trade relations between the Hamburg economy and China. Today's strategic partnership between Hamburg’s Dax company, Beiersdorf, and China's largest cross-border eCommerce platform, Kaola.com, represents a major step forward in trade between our Hanseatic city and Asia's largest economy,”​ shared Peter Tschentscher, First Mayor of the Free and Hanseatic City of Hamburg.

E-commerce is a key marketing channel for domestic brands in China. As a result,  Beiersdorf is exploring long-term partnerships with local industry names and e-commerce is a core strategy for expanding the brand. When analysed as a country, e-commerce will rank among the five highest-revenue affiliates of Beiersdorf in 2018.

“Through the cooperation with NetEase Kaola, we can further expand our online presence in the important Chinese market and move closer to local consumers,”​ noted Ralph Gusko, Beiersdorf Board Member for Asia & Brands.

“In the mass market, in particular, this is an above average result. The partnership with Kaola takes us to the next level,”​ Gusko continued.

Strategic agreements

For Zhang Lei, CEO of NetEase Kaola, the unity between skin care name, NIVEA, helps to expand trade relations with Europe: “For Western countries entering the complex Chinese market is often associated with hurdles. We are pleased and very proud to be able to build bridges for a globally successful and popular brand like NIVEA.”

Beiersdorf recognises that in China, Made in Germany brands represent high quality and reliability, Gusko commented: “In addition to NIVEA we have other strong brands in our portfolio​." 

“Our partnership is just beginning. We look forward to continuing to develop it together with Kaola in the future.”

 

 

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