Germany-based Beiersdorf AG, the maker of Nivea skin creams, is entering the women's fairness cream market in India, almost a year after it began selling fairness cream for men locally in a bid to take on rivals including Hindustan Unilever, L'Oreal and other players.
Beiersdorf plans to begin selling Nivea Visage Sparkling Glow range to tap the country's Rs 900-crore (Rs 9 billion) women's fairness market in India. The company plans to sell through modern trade (organised retail) to bring the affluent urban consumer into its fold.
The Hamburg-based consumer company is expanding its presence in India at a time when sales in its home country is slowing, crimping operating margin. Consumer spending in western Europe and the US is prompting leading consumer companies including L'Oreal to cut sales forecast and expand in emerging markets.
Soma Ghosh, head (marketing), Nivea India, told Business Standard, "Fairness provides the biggest business opportunity for skin players in India. Hence, Sparkling Glow would be our number one priority in the Indian market. We would launch it nationally with special focus on the top six metros and 25 mini metros."
Of the Rs 2,000-crore (Rs 20 billion) skin care market in India, the fairness market makes up for half of the pie and is growing in double digits.
The Sparkling Glow range would be positioned in the new mass premium segment worth Rs 40 crore (Rs 400 million) of the total fairness market. This segment is expected to grow at 50 per cent annually, estimates the company.
