28 May 2018 - Deborah Wilkes
Beiersdorf is expanding its e-commerce presence in China through a "strategic partnership" with NetEase Kaola, the cross-border e-commerce platform.
The German skincare specialist said the deal would provide its Nivea brand with "open access to more than 900 million users".
Ralph Gusko, Beiersdorf's board member for Asia and brands, said the cooperation with NetEase Kaola allowed Beiersdorf to "further expand our online presence in the important Chinese market and move closer to local consumers".
Beiersdorf noted that e-commerce was one of the essential drivers of its growth. "Viewed as a country," said the company, "e-commerce will rank among the five highest-revenue affiliates of Beiersdorf this year."
Zhang Lei, chief executive officer of NetEase Kaola, said the "cooperation with the world’s largest skincare brand Nivea means another important step in expanding trade relations with Europe".
“For Western countries," she added, "entering the complex Chinese market is often associated with hurdles. We are pleased and very proud to be able to build bridges for a globally successful and popular brand like Nivea.”
Beiersdorf pointed out the "boom in import goods in China has brought Kaola high double-digit growth rates since its founding just three years ago".
Financial details of the deal were not disclosed.
Beiersdorf already works with the larger Chinese online retailers JD.com and Alibaba.
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