China Business Daily/China Business Network (Reporter Ma Jia) Foreign cosmetics giants are launching a "brand fight" in the Chinese market. Following L'Oreal, Unilever, Shiseido, etc., Nivea's parent company and German cosmetics giant Beiersdorf also aimed at emerging beauty brands in the Chinese cosmetics market. Why do foreign giants prefer the new domestic beauty brands? Can the new domestic beauty brands that are always "short-lived" become a new trend in the industry?
Joining the "brand fight" in the Chinese market, what does the German cosmetics giant Beiersdorf want? Image source: Image courtesy of the enterprise
Another foreign giant joins the "brand fight"
German cosmetics giant Beiersdorf launched the accelerator program NX China in the Chinese market, with the purpose of selecting promising new brands in the Chinese market Make investments. Two years ago, Beiersdorf took the lead in testing the waters in the Korean market and signed contracts with five local Korean brands. This time, why did Beiersdorf target the Chinese market?
Beiersdorf Northeast Asia general manager Xue Wei told a reporter from China Business Daily that the rise of a new generation of consumers and the diversification of digital media channels have brought more opportunities for localized emerging brands. Through the NX CHINA accelerator project, Beiersdorf has joined forces with cutting-edge beauty brands in the Chinese market to provide consumers with a different experience and at the same time incubate new market-leading players for the Chinese beauty industry.
It is worth noting that Beiersdorf is not the only foreign giant targeting emerging brands in the Chinese market. In 2020, L'Oréal launched the BIG BANG Beauty Technology Creation Camp in the Chinese market, Unilever’s incubator was launched in China, and the Shiseido Zhimei Innovation Center officially settled in Shanghai. Ji Yun, general manager of Alibaba Group's Tmall Beauty Care, told a reporter from China Business Daily that the first place in Tmall's beauty sales is the domestic emerging brand, and the market potential of the emerging brand should not be underestimated.
"For foreign cosmetics giants that have accumulated resources, investing in and acquiring cutting-edge brands can attract more young consumers.Increase traffic and maintain its leading position in the market, while also being able to open up new markets among more segmented consumer groups. "A person in charge of a foreign brand told reporters.
Beiersdorf overweights the Chinese market
The sales of American equivalent brands in the Chinese market have grown strongly. According to Beiersdorf’s 2020 performance report, both Nivea and Eucerin have achieved double-digit growth in the Chinese market. Perhaps it is precisely because of the growth potential of the Chinese market that Bayer sees the growth potential of the Chinese market. Sdorf chose to invest in new and cutting-edge brands in the Chinese market.
Beiersdorf Group has 12 brands. Image source: Image courtesy of the enterprise
Xue Wei told reporters: "The Chinese market is Beiersdorf. A very important part of the CARE+ global strategy proposed in 2019. The company's establishment of the Northeast Asia region in 2019 and the establishment of the world's second largest innovation center in Shanghai in 2020 all demonstrate the company's confidence in the Chinese market.
The "brand fight" is in full swing. Is Beiersdorf confident to "take down" a good brand? Xue Wei said: "It is not just a multinational giant in the beauty industry, but also many professional investment institutions have begun to pay attention, explore and support A new brand. This is not so much a competition, as it is that everyone is aware of new possibilities. Large companies can communicate and cooperate with new brands with an open mind, which can promote more entrepreneurs from different backgrounds to enter the skin care field and produce more excellent brands. Beiersdorf's advantages and persistence in the field of skin care, as well as the perspective of selecting new and cutting-edge brands, will definitely attract like-minded and outstanding entrepreneurs to join the NX CHINA project and lead the new beauty industry trend together. ”
Is the cutting-edge brand lacking stamina?
The emerging domestic beauty brands are not only facing the opportunity of large-scale capital injection by foreign giants, but also the crisis of the same type of brands that "fall down". Recently, the new beauty brand Sandi Ni, DRAMO, and Apinkbaby went bankrupt one after another,Even the Diary of Four Seasons, founded by popular anchor Wei Ya, closed its store within a year. Seemingly standing at the peak of traffic, domestic new brands, after "backing on the big tree", can they really enjoy the cool with peace of mind?
Foreign giants naturally have their own considerations when choosing capital injection targets. "Beiersdorf is not only a physical enterprise, but also an investor. When selecting brands, it will focus on the founder’s original intentions, and see if he wants to be a brand that'comes fast and goes fast', or wants to be a brand that can In the impetuous market, a long-term vision is used to make product brands. The group will carefully consider investment." Xue Wei said.
In Beiersdorf's view, innovative ideas, capabilities and values are the key to emerging brands in capital and the market. Xue Wei told reporters frankly that when Beiersdorf chooses a brand, in addition to conforming to the group’s core values, it also depends on the brand’s positioning and the uniqueness of the product, focusing on the skin care field; in addition, in the face of cruel market competition, If you want to survive first, you need to have special points in the brand operation, such as community, new skin care technology, etc.
In addition, as a German technology skin care leader with a history of nearly 140 years, Beiersdorf is full of confidence in its prospects in the Chinese market. "The Chinese market currently accounts for a small proportion of the Group's global business, and it is still in the stage of further investment and development potential. I believe that the Chinese market will become the group's fastest-growing market with the most sustainable growth potential." Xue Wei Said.
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