The Beiersdorf-owned brand NIVEA recorded 13.9% growth in Japan in Q2 alone.
“Despite the challenging circumstances of the COVID years and strict government regulations in Japan, 2022 already proved to be a successful year for our business. Now we are witnessing even greater momentum with the strongest quarter in recent history,” said Beiersdorf CEO Vincent Warnery.
He highlighted that NIVEA’s recent performance in Japan was ‘remarkable’ considering that the market is dominated by local brands.
“It is the only successful international and widely recognised skin care brand in the mass channel in Japan,” he said.
The company attributed the growth of its success to sun care and lip care.
In sun care, the company has built upon the success of its NIVEA UV Tone-Up Essence.
“NIVEA UV Tone Up Essence not only contains our patented 3D UV film but also infused with an essence that provides deep moisturising care to make the skin more even. Our product series directly addresses the number one unmet need of Japanese women; skin spots caused by UV light,” said Warnery.
At the same time, the company has been strengthening its position in the market with core products, including its lip care range.
“Particularly noteworthy is the success of our lip products. We have gained the number one market position and shown excellent growth of 82%.”
In 1971, Beiersdorf and the Kao Corporation entered a joint venture and formed Nivea-Kao. In 1990, Beiersdorf took control of 60% of Nivea-Kao as part of a deal with the Japanese major.
Korea and China
In neighbouring South Korea, NIVEA also recorded a strong sales acceleration of 15.4% on the back of skin care.
The sales of NIVEA Crème increased by 139% while the lip category recorded growth of 104%.
“Our portfolio strategic refocus on the skin care categories has been rewarded as demonstrated by the remarkable triple-digit growth of our lip category and NIVEA Crème in the second quarter,” said Warnery.
“We continue to outperform the market with our portfolio, and Korea is one of the fastest-growing countries in terms of skin care market share for us.”
In China, NIVEA reported 35% growth on the back of the success of NIVEA Luminous 630.
“In China, premiumisation is the key to success as a global brand. Striving for success in this highly strategic market, securing premium positioning has to be your highest priority to prepare the ground for sustainable growth,” said Warnery.
According to the firm, NIVEA Luminous 630 was now the top dark spot serum in the cross-border e-commerce market coming from fourth last year.
Aside from the serum’s success, China has also benefitted from NIVEA’s premiumisation efforts, Warnery highlighted.
“At the same time, we are continuing to premiumise our core portfolio by driving premium and high margin products both online and offline. In the second quarter, we managed to increase the share of premium products in China by 60%. Our premiumisation strategy has led to remarkable results with outstanding organic sales growth of 35% in the second quarter.”