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Beiersdorf Launches Vietnam Affiliate
Posted: November 24, 2010
Beiersdorf has established an independent affiliate in Vietnam, and with this newly established Beiersdorf Vietnam Limited, the company laid the groundwork for further growth in Southeast Asia and for meeting the strong and consistently rising demand for skin care products in Vietnam. From the company's local headquarters in Ho Chi Minh City (Saigon), the new global Beiersdorf strategy "Focus on Skincare. Closer to Markets." will be implemented regionally to expand sales in a targeted manner. The goal is to double turnover in Vietnam by 2015.
"We have seen strong sales growth in Vietnam in the past. At this stage, further development will be easier to pilot with an independent affiliate. Our goal in Vietnam of continuing to grow significantly faster than the market will now be easier for us to reach," says James Wei, member of the Beiersdorf executive board with responsibility for the Asian operation. "Now we can adapt Nivea products even more closely to the specific needs of Vietnamese consumers, and react faster to local market trends. Nivea already holds leading positions in numerous product categories, and is the undisputed market leader for body care, deodorants and men’s care products. These market positions are a solid basis for further growth."
Beiersdorf has been represented by a representative office in Vietnam since 2004 and constantly expanded its skin care business since that time. Nivea is available in more than 40,000 stores in the cities, as well as in rural areas. All products are imported from the modern Nivea plant in Thailand.
The Vietnamese cosmetics market
With a population of around 85 million, Vietnam is the third-largest country in Southeast Asia. More than half of the population is less than 30 years old and enjoys a confident, modern lifestyle. Demand for high-quality products, particularly in skin and body care, has been growing continuously for some years. Skin-lightening or whitening products are particularly sought-after in the entire Asian region and are by far the top market-sellers. The most important criteria for Vietnamese consumers are brand trustworthiness, high product quality and skin-lightening effects.