Oliver Schrader, general manager of Beiersdorf Southern Africa, said that the company was not only committed to maintaining a Durban-based head office for logistical reasons – the proximity to the King Shaka International Airport and the Durban port as the majority of products are imported from Europe and then distributed countrywide via two large distribution centres in South Durban and Gauteng – but also because of its access to a relevant skills pool that was essential for growing its business in Southern Africa.

In South Africa, Beiersdorf, via its Nivea and Labello brands, is a market leader in male skin care and sun and lipcare, the second largest in shower and shaving products as well as a major player in the female skin care and deodorant categories. The pharmacy brand Eucerin is market leader in the dermo cosmetics category and Elastoplast is market leader in plasters.
Worldwide, Beiersdorf has a presence in over 200 countries. 30 percent of women worldwide use Nivea products and the company is the market leader in skin care in 46 countries.

When Beiersdorf returned to South Africa in 2001, it located its head office in Durban as this was home to Smith and Nephew, which had held the rights to its brands until then. Schrader said the company wished to draw on the experience and expertise of established employees. Over the past 12 years, Beiersdorf Southern Africa has grown its staff from seven to 84.
Schrader said that the relocation of the offices was key to realising Beiersdorf’s ambition to be recognized as one of the top places to work in South Africa. “We can now offer an excellent proposition to national top talents - work for iconic global brands, operate within an entrepreneurial and fast growing business culture and be located in one of Africa’s fastest developing business hubs.”

He added that Durban was also the location of choice for Beiersdorf Southern Africa as it was more representative of the broader South African consumer market than some other major centres.

“In Umhlanga, we feel we are close to the heart beat of new developments in the province and enjoy the energy associated with growth and new ideas. We believe that, in general, Durban delivers on many aspects that are relevant for us to succeed.”

Most importantly, he said, the company’s new location gave it better access to its consumers. “Our former location was in an office park that was rather detached from daily life. Now we are located in a buzzing high street atmosphere with a wide range of consumers walking by. As we are a democratic brand that strives to offer something for everyone, this is a perfect fit. We can create bonds with our consumers, ask them to try our products and give us feedback.”

Although the bulk of sales currently come from South Africa, Schrader believes that the five Southern African countries to which they export present significant growth opportunities. Beiersdorf has actively managed its brands in Namibia, Botswana, Zambia, Zimbabwe and Mozambique. Together, these five countries have more inhabitants than South Africa, he pointed out.

According to Schrader, while Beiersdorf will remain true to its European roots in terms of best practice and meeting the very highest international standards when it came to research and development and manufacturing, it also recognized the need to develop products to meet the unique needs of regional markets.

Already, a large portion of the €159-million spent on research and development in 2012 at state-of-the-art centres in Germany, China and Mexico benefited the local market and Beiersdorf has allocated resources at its centre in Hamburg specifically for research and development of products specifically for the African market. These were based on input provided by Beiersdorf Southern Africa.

He said that the Southern African market was a particularly exciting one in which to operate at present as it was open to new products and innovation. “Already there are between 30 and 40 product changes or new launches every year with formulations and quality standards equal to those in the most advanced markets.”