Marketing Material
Beiersdorf
There are likely just few people out there that would not recognize signature blue color of the world- famous Nivea brand. But majority would be surprised to learn that it is more than hundred years old and is not of French, or Italian, but rather German origin and belongs to a parent company Beiersdorf, founded in the distant 1882. The firm, named after its founder Paul Beiersdorf, was originally focused on selling medicinal plasters, which it does by this day, by the way, under brand name Hansaplast.
When Nivea crème was introduced to the market, which shifted Beiersdorf’s focus to skincare, it was first of its kind and therefore sold at a premium, so only wealthy individuals could afford it. As market developed and people got comfortable with the product, and as disposable income grew, Beiersdorf decided against maintaining luxury positioning of Nivea and by keeping the price tag made it affordable instead. This is where you will find Nivea today and this is where its strength lies – in well recognized, yet affordable brand, with century-long history.
As a company, who also owns an adhesive business named tesa, Beiersdorf is a true representation of remarkable excellence that managed to safeguard and develop its business despite numerous existential threats and battles it had to live through. Some of these battles were literal, like World War I and II. For example, during Nazi regime, company’s executives that were mostly of Jewish descent had to leave the company to save it, while in the first half of 21st century it lost trademark rights to Nivea, twice.
Nevertheless, despite all the hardships, Beiersdorf stayed true to its values and kept its integrity. That would not be possible without true understanding of its markets and visionary management that foresaw future trends and was not afraid to do the right thing. Beiersdorf is a great example of a durable quality that has successfully completed the test of time. This is why it remains our Global Quality Top 25 Portfolio holding as of December 2023.
Nivea remains one of the key growth engines for Beiersdorf despite being on the market since the beginning of last century
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This post has been prepared solely for information and advertising purposes and does not constitute a solicitation, offer or recommendation to buy or sell any investment instruments or to engage in any other transactions. The related prospectus and the key investor information (e.g. PRIIPS KIID / Key Information Document) can be obtained free of charge on our website Hérens QualityAsset Management – HQAM.