The Nivea maker’s sales were hit hard by the pandemic but it is preparing for a rebound in 2021
Despite a downturn in sales for 2020, Beiersdorf is anticipating a rebound in growth for 2021.
Group sales were down to €7.025bn from 2019, a reduction in organic growth of almost 6%, but investment as part of its CARE strategy and a uptick market share growth in its skin care categories has given the German beauty owner a positive outlook for the year ahead.
Beiersdorf’s skin care jewel Nivea was able to gain market share in more than half of its operating countries, while in health care, Hansaplast held up its position in two thirds of its markets, in spite of the challenges brought on by Covid-19.
However, as with most luxury segments La Prairie was significantly impacted by the pandemic.
The high end skin care brand’s sales were down almost a quarter (23.9%) due to restricted travel brought on by the pandemic cutting off a vital lifeline of revenue for the business.
Growth in China during the second half of the year nonetheless gave La Prairie some much needed sales thanks to its recent launch with China’s e-commerce platform Tmall.
“2020 was challenging, but it was also a landmark year for Beiersdorf,” said the group’s CEO Stefan De Loecker.
“Our clear priorities in the crisis were to ensure the safety of our employees, continue meeting the needs of our customers and do our utmost to help society battle Covid-19.”
To capitalise on its market position, the Eucerin maker has upped its investment from €70-80m to €300m to put towards digitalisation and growth in markets over the next five years.
This in turn Beiersdorf hopes will be seen in its performance throughout 2021.
“There is still some uncertainty this year,” added De Loecker.
“However, I am confident that we will see clear improvements by the end of the year as vaccinations gather pace in many countries.”