Gemany's cosmetics maker Beiersdorf AG said annual sales of its iconic Nivea brand in China are likely to double to 2.1 billion yuan (US$307 million) in two years and to 3 billion yuan in five years.
The maker of Nivea-brand cosmetics yesterday opened a new Nivea factory in Shanghai's Qingpu District and plans to make it the strategic hub for the company's supply chain in the Asia Pacific region.
The new factory covers an area of 50,000 square meters, almost five times the former plant. Output capacity is now at 15,000 tons each year.
The firm plans for an ultimate production capacity of 25,000 tons annually which it said would be able to meet its growing demand within five years, it said.
"Besides increasing our market share and growing much faster than the market, strong investment and increasing production capacity are the best reflections of our success story in the Chinese market," said Werner Brettschneider, vice president of the firm's business unit.
The largest cosmetics company in Germany also owns the Eucerin brand and the la prairie premium brand. But Nivea is the most important and valuable of all its brands as it provides more than 60 percent of its total sales.
Nivea sales in China jumped 42 percent last year to 1.2 billion yuan.
The company's largest Asia Pacific market is China.
(Shanghai Daily June 9, 2009)