German skincare giant boosts China investment, taps Shanghai as operational hub

Skincare giant Beiersdorf said it's stepping up investment in China to strengthen new product development and launch efforts with Shanghai as an essential hub for its commercial operations and product introductions.

The German company, which makes popular brands like Nivea, Eucerin and luxury brand La Prairie, has pledged around US$31.4 million in new investment in China this year to update local formulas, new product portfolio and manufacturing capacity for future launches, it added.

"We will reinforce our local innovations and product development efforts in Shanghai and we believe new products have the potential to be extended to other Southeast Asian markets," said Ketin Lei, general manager of Corporate Affairs at Beiersdorf China.

Shanghai has a complete industry value chain so that it can effectively drive skincare product innovation based on local demand, he noted. The company has its regional headquarters, manufacturing site and innovation facility in Shanghai.

The new investment decision comes after the regulatory approval of Beiersdorf's patented anti-spot ingredient Thiamidol630 in November, the first spot treatment ingredient approved since the implementation of China's Cosmetics Supervision and Administration Regulation in 2020.

This marks the first step towards the complete registration of the finished goods to be distributed locally.

One of Eucerin's latest spotless brightening products with the patent ingredient was launched in Shanghai last month and follow-up imported products and locally made items will hit the market in the near future.

The company expects relevant products based on the new ingredient to generate about 1 billion yuan of industry value in the next two to three years, including several new face care products that are suitable for local consumers.

The Caohejing research and development facility in the city, with around 10 million euros (US$10.78 million) investment, is Beiersdorf's largest outside of its headquarters in Hamburg.

It's been actively seeking to combine latest skincare research results with Chinese demands which is essential in adapting to market trends.

The Shanghai government and local agencies of the medical products administration have been coordinating the approval process of its innovative ingredient, according to Lei.

Shanghai remains the most-favored destination for foreign investment and a top choice for multinational corporations (MNCs) to build global supply and industry chain.

There were close to 6,000 newly established foreign-funded companies in Shanghai in 2024 and by February, a total of 1,027 regional headquarters from MNCs and 597 foreign-funded research centers had been set up in the city.