China is becoming a vital market for growth and innovation for Beiersdorf, according to Xue Wei, managing director for Northeast Asia at Beiersdorf Group, which owns brands like Nivea, La Prairie, and Eucerin. The company has established its second-largest innovation center in Shanghai to better leverage local consumer insights and develop products tailored for Chinese shoppers.
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Despite facing increased competition in China, the market holds long-term potential due to its large consumer base, a growing middle class, and a robust industrial ecosystem. Joe Ngai, a senior partner at McKinsey & Company, noted that while China is highly competitive, foreign brands can succeed by adapting to the rapid pace of local innovation and the sophistication of Chinese consumers.
McKinsey research indicates that China contributed about one-third of global GDP growth in 2025, with the number of Chinese households earning over $25,000 annually hitting 64 million in 2024, projected to reach 116 million by 2029. As the second-largest beauty market globally, valued at around $65 billion, China sees foreign brands maintaining a strong presence in premium skincare while domestic brands are making gains, especially in the mass and masstige categories.
Consulting firm Bain & Company points out that Chinese consumers now prefer efficacy-driven, clinically validated products, shifting the R&D focus for international companies. Beiersdorf’s Shanghai innovation center exemplifies this trend, moving away from solely importing European formulations to developing products based on local skin characteristics and preferences, which may also be adapted for other markets.
Xue described the company's R&D approach in China as a combination of 'slow' and 'fast' methodologies, balancing long-term scientific research from Germany with rapid clinical and digital validation suited for the local market. Li Jiaqi from China Insights Consultancy highlighted how German craftsmanship and quality control, paired with China's agile supply chains and robust digital marketing, enhance product competitiveness.
Despite rising competition, the diverse consumer segments and advanced digital infrastructure in China offer ongoing opportunities for international brands. Success hinges on authentic integration into the local market, understanding consumer needs, enhancing domestic R&D, and collaboration with local partners.
On September 14, Eucerin launched a new line of sensitive-skin repair products in Shanghai and announced a strategic partnership with Tmall Hey Box to expand its omnichannel presence in the market.