Last year, we identified four brands that have grown their CRPs in every year since the launch of the Brand Footprint Top 50 ranking. In this, our eighth edition, all four have continued to increase how often they are chosen across the globe—including NIVEA.
The brand – from multinational German manufacturer, Beisersdorf AG – has risen more than 20 places in eight years, becoming the 23rd most chosen FMCG brand in the world. It is now the seventh most chosen Health and Beauty brand. Looking solely at how many shoppers buy the brand, it has the joint-11th highest penetration of any global brand. Including all six markets from the African and Middle Eastern region, it reaches 24.4% of households across the world.
In Europe, NIVEA reaches the second-highest number of shoppers—one of only two brands which more than half of the population buys.
Stefan De Loecker, Beiersdorf CEO, spoke last year of “plans to invest €80 million a year to open up new markets”. A glance at where the brand has gained new shoppers shows this has been successful. There were shopper wins for the brand in Latin America, driven by Brazil and Argentina; in Asia, driven by Indonesia and India; and in Africa and the Middle East, driven by Egypt and Nigeria.
However, there are a few watch outs for the brand. Despite growing CRPs again, its 2019 growth slowed to just 0.2%, down from 2.5% in 2018. In Europe, the brand lost shoppers and CRP in the UK and France—negating gains made in Germany. The brand’s biggest global loss was in the US.
Finding the right balance between winning in established markets and gaining traction in new territories is always a difficult task. Despite this slowdown, NIVEA’s repeated growth should be celebrated as a remarkable achievement.
We were lucky enough to speak to Dr. Martin Bergmann, Head of Global NIVEA Brand Health Tracking, to understand more about the brand success.
NIVEA was the inventor of contemporary skin care, more than 110 years ago. The brand has shaped the entire skin and personal care category ever since, establishing new categories and innovations in line with consumers’ changing needs. Today, we are a highly trusted, democratic skin care brand, offering products that fit the needs of women, men and families all around the globe. Since the early days, NIVEA’s success is rooted in an in-depth understanding of the skin and its care.
A global brand must offer a clear and unique emotional reward: a purpose. In this sense, global brands should take more of a stance on social responsibility. Due to their size, they can have a significant positive impact on consumers’ life.
Growth opportunities can be found in all countries around the world. Even in saturated markets like Europe, NIVEA can grow by attracting new buyers or increasing frequency with great consumer insight and compelling innovations.
Over the last few years in India, the brand has already developed very well. We gained buyers and loyalty, but there is still significant potential to win additional buyers. Distribution plays a major role here.
NIVEA has had great success in South Africa, with the brand growing strongly in the past few years. We also see an opportunity in other African markets, where NIVEA is already well known but has lower penetration and distribution.
The brand’s success is built on two strategic pillars: consistency and innovation. We have a very strong core in skin care, which originates from our NIVEA Crème product. Based on this strong fundament, we’ve been able to extend into new categories and innovate in existing categories. With an in-depth understanding of the skin and compelling consumer insight, NIVEA has the ability to develop disruptive innovations.
It is hard to predict how society will change, but I personally believe that values such as caring for others and solidarity will become more important. We’ve already seen how people are helping each other out, even in very difficult situations. I hope that society develops a new consciousness about the things that really matter: less egoism, more community.
Brands grow by increasing their penetration and, with it, their loyalty. That’s what internal and external data tells us.
The key levers to grow are increasing awareness, improving brand image and enlarging physical availability. Additionally, brands need to be in line with the zeitgeist and innovate accordingly. The needs of consumers are evolving and only the brands that fully understand consumers’ needs can earn their trust.
The beauty and personal care category is highly emotional. It’s of personal importance to everyone, involving our biggest organ: the skin. This makes the category very complex. In the end, the entire category is about feeling good. To reach this feeling, one must balance out social obligations and individual wishes.
The rise of indie brands in many categories is remarkable—we’ve seen them rise in coffee, beer, fashion and many more. Over the last few years indie brands have consistently gained share in the beauty and personal care category, too. These brands are often on trend, offering benefits consumers can relate to: local production, sustainable ingredients, craftmanship, being run by “real” people, etc. The trade has accelerated this movement by offering shelf space to these brands to differentiate from competitors. It’s a very interesting development which will most likely continue.
The trend towards sustainable products will continue. Personalised products that are tailor made to consumers’ needs will most likely be the “next big thing”. The individual consumer will be in the focus and products will designed to perfectly meet their unique needs.
