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Beiersdorf sees solid ME sales growth

Dubai, February 15, 2010

Beiersdorf Middle East, brand owners of the renowned Nivea brand, has posted another excellent year with the group's travel retail sales in the region witnessing a 19.5 per cent growth over 2008, said its top official.

Robert Taylor-Hughes, managing director and CEO of the Middle East, West Asian and North African Markets, said the results were excellent for 2009, a year that had many companies facing serious difficulties.

According to him, the cosmetics and toiletries markets in the region contracted from double digit growth in 2008 to around four per cent in 2009.

'Excluding Saudi Arabia, we grew at 12 per cent, achieving threefold the market rate. Even if we include Saudi our net sales still grew by 5.6 per cent and 11.5 per cent if we exclude currency effects,' he added.

Taylor-Hughes said the company has many new exciting product roll-outs in 2010 to continue with a vital innovation pipeline, and to take over further new market responsibility in North Africa, with Libya being a new market with great growth opportunity.

'A recession is all about lack of consumer confidence; therefore it’s important to have brands that consumers trust and offer good value for money. Similarly, if you can’t afford large luxuries, then smaller luxuries experienced more often can bring back the feel-good factor to the consumer,' he observed.

'It is also important to keep innovating during difficult times. If you can offer more consumer benefits driven by science and technology, for a similar outlay, then you can win important market share and this is the key: Top-line sales during times of de-growth and stagnation must be replaced with stronger market positions and growth in profit; these were our main objectives for 2009,” he added.

'This is a tremendous result considering all the extraneous factors affecting business in our regions. Key highlights from the region include Jordan with over 36 per cent growth, Egypt over 33 per cent, Lebanon and Iraq at over 23 per cent, and most of our other thirteen markets witnessing double digit growth.”

“Critically, market share is key. If you can increase market share in shrinking markets, you are effectively taking it from your competitors. Across the 9 markets audited by Nielsen we occupy 41 number one, two or three market share positions.

'In 2009, we added 4 new number two positions and 1 new number one position, so we can be very proud about increasing our dominance in the skin and beauty categories in which we operate.'

With regards to new business, Taylor-Hughes cited the Duty Free channel as a good growth driver.

'Our travel retail sales in the region in 2009 showed a 19.5 per cent increase versus 2008, which, again, is almost more than double the regional TR market growth of around 8 per cent, on top of an equally impressive 22.3 per cent Nivea growth in 2008.'

Taylor-Hughes said during 2009 the brand expanded TR operations into Iraq and Cyprus – namely Baghdad International, Arrival and Departure areas of Terminal C & D, and Cyprus in the new Larnaca Zenon Terminal, which officially opened on November 17.

'Travel retail innovations were driven by new assortments: Lift and Contour Program pack with Expert Lift Day Cream, Night Cream and Eye Cream and Nivea Make-Up offerings such as Dynamic Duo/ Perfect Couple Lipstick and Nail Polish Combos and Party Princess & Party Rebel Lipstick, Mascara and Nail Polish Trios,” he added.-TradeArabia News Service




Tags: growth | Nivea | Beiersdorf |

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