Nivea India, the Indian affiliate of the German fast moving consumer goods (FMCG) major, Beiersdorf, will launch fewer products this year and instead focus on existing products, particularly in the face-care category and deodorants, in view of the current slowdown in the market.
“We will focus on building existing brands instead of launching products as aggressively as we did last year, considering the market condition,” said Nivea India Marketing Head Soma Ghosh. The company spends around 40-50 per cent of its turnover on advertising and marketing.
Last year, it had launched a deodorant range, face creams, including men’s Whitening Oil Control range, cold creams as well as its lip-care products. On the back of these launches, the company clocked a turnover of Rs 100 crore in 2008, nearly 130 per cent growth over the previous year.
The company is also exploring the possibility of introducing some of its global brands in India. Out of its 1,600 products worldwide, it sells just 75 in India. “We are exploring the possibility of launching sun-protection and anti-ageing products in India from our global portfolio. Although we have not decided the prices for these in India, worldwide, these are positioned as mass brands,” said Ghosh.
However, in India, Nivea is a mass premium brand and so the positioning will be done accordingly, he added. The Nivea Visage Sparkling Glow range, according to AC Nielsen figures (late 2008), cornered 3.5 per cent (all-India urban) share. The other players in this space are Garnier, Ponds and Olay. This category is growing at the rate of 85 per cent in the premium market.
Currently, 80 per cent of Nivea products are imported. Its soaps are manufactured through third-party manufacturers. “We have hiked prices of our products by 2-3 per cent in the last two months. However, as and when there is any reduction in operational costs, we will pass on the benefit to our consumers,” Ghosh added.