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Beiersdorf Invests $31.42 Million to Expand Investment in China

Recently, according to media reports, a representative from Beiersdorf’s Innovation Center announced that Beiersdorf has decided to inject $31.42 million into NIVEA (Shanghai) Co., Ltd. (“Shanghai NIVEA”) in 2025. This investment will focus on three strategic directions: local formula research and development, upgrading smart production lines, and optimizing precision marketing strategies.  Lei Kaiting, General Manager of Corporate Affairs at Beiersdorf China, stated in a media interview: “After a century of development, the headquarters of Beiersdorf’s various business divisions—previously spread across Hamburg (Germany), Zurich (Switzerland), and New York (USA)—are now all based in Shanghai. Shanghai has become the only city globally to bring together the regional headquarters of all Beiersdorf business divisions.”  

Currently, Beiersdorf has established three major centers in China under Shanghai NIVEA: an Innovation Center, a Marketing Center, and a Manufacturing Center. The Innovation Center, located in Caohejing Development Zone, is Beiersdorf’s second-largest R&D center globally, focusing on meeting the needs of Chinese consumers. In 2023, it was officially recognized as a Foreign-Funded R&D Center in Shanghai. The Marketing Center, located in Xujiahui, houses teams for marketing, sales, e-commerce, supply chain, and backend support. In 2024, it was approved as a Regional Headquarters of a Multinational Corporation in Shanghai. The Manufacturing Center, situated in Qingpu Industrial Park, primarily produces NIVEA and Eucerin products. In 2024, it was recognized as an Advanced Smart Factory in Shanghai.

“We chose to strengthen our presence in Shanghai because of its highly favorable business environment,” Lei Kaiting explained. During the opening of the 7th China International Import Expo in 2024, China’s National Medical Products Administration (NMPA) issued an announcement: Beiersdorf’s patented ingredient “Isobutylamido Thiazolyl Resorcinol” (Thiamidol630), designed to address hyperpigmentation, officially received China’s new cosmetic ingredient registration certificate for whitening and spot-removal products. This marks only the second whitening and spot-removal ingredient approved in China’s history and the first to receive NMPA approval since the implementation of the Cosmetics Supervision and Administration Regulation.

“This achievement also belongs to Shanghai,” Lei added. The application for Thiamidol630 was submitted by Shanghai NIVEA and was approved within three years and eleven months of the Cosmetics Supervision and Administration Regulation coming into effect—breaking the previous historical precedent where only one whitening ingredient was approved over 31 years under the old Cosmetic Hygiene Supervision Regulations. This milestone was supported by on-site guidance from the Shanghai Medical Products Administration and specialized services from the Qingpu District Government.

Lei further stated that as the first whitening ingredient approved under China’s new regulations (registration number: Guo Zhuang Yuan Zhu No. 20240001), Thiamidol630 has officially entered the Chinese market. In addition to imported versions, a locally manufactured “Shanghai-made” NIVEA product featuring Thiamidol630 will also be approved and launched in the second half of the year, with Shanghai as the global debut location. “Once the product enters production and sales phases, the Qingpu District Economic Commission will provide policy support for intelligent production line upgrades. Additionally, districts including Qingpu, Jing’an, and Xuhui will collaborate to facilitate the gathering of Beiersdorf’s four major brands (NIVEA, Eucerin, Chantecaille, and La Prairie) in Shanghai by September 2025, marking the global launch of the domestically produced Thiamidol630 product and its Chinese trademark.”

Reports indicate that Shanghai NIVEA is among many foreign-invested enterprises planning increased investments in Shanghai this year. The Shanghai Municipal Commission of Commerce stated that they are tracking over 100 companies with a combined investment of approximately $6 billion. “In 2025, we will implement the 8.0 Action Plan to contribute to Shanghai’s development as a world-class business environment featuring market-oriented, law-based, and internationalized standards,” said Chen Hao, Director of the Foreign Investment Department at the Shanghai Municipal Commission of Commerce.

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