Beiersdorf continues cutting low-profit product lines, investing in skin care products after devastating Q3 profits; focus remains on faster-growing economies, such as China
November 9, 2011
– Beiersdorf announced it will continue its brand refocus program from 2010 and early 2011, and says about 90% of it has been completed, Cosmeticsdesign-europe.com reported Nov. 9.
Earlier this year, Beiersdorf said it would scale down its Nivea range in Europe by 19%; the line currently includes 500 products. Last year the company began reducing its cosmetics segment and began focusing on its skin care range.
The most recent announcement comes after the company posted poor Q3 results, including a 25% drop in profits due to higher costs and decreased sales in its biggest market, Europe, according to the article.
Europe’s economy remains uncertain, and Beiersdorf anticipates an “extremely mixed” future with below average growth in the hardest hit countries in the region.
Faster-growing markets, like Africa, Asia and Australia, remain promising as rising incomes are leading to higher revenues in those regions, reported Cosmeticsdesign-europe.com.
The company expects these changes will lead to a “slight increase” in sales for 2011, although it remains uncertain about next year.
The primary source of this article is Cosmeticsdesign-europe.com, Montpellier, France, on Nov. 9, 2011.