I. Executive Summary, Methodology and Market Landscape
I.1. Overview of Achievements and Growth Mechanism
In the first half of 2025 (H1'25), NIVEA achieved a remarkable growth milestone in the Vietnam E-commerce market, recording an impressive total revenue growth of +233% compared to the same period last year on major platforms such as Shopee, Lazada, and TikTok Shop. This achievement is not the result of luck or random trends, but a synergistic effect from the synchronous implementation of two core strategies: Dual-Platform Strategy and Hero SKU Strategy.
The focus of this growth lies in the Body Care segment. Analytical data shows that the revenue of the Body Care industry has reached 65 billion VND in H1'25, achieving a breakthrough growth rate of +535% over the same period. The important thing is that this industry has contributed 76.9% to NIVEA's total revenue proportion on e-commerce. The success in identifying and optimizing a specific Key SKU has enabled NIVEA to not only maximize sales but also strengthen its brand positioning in a fiercely competitive market.
Key Performance Indicators (YoY H1'24):
Gross Revenue (GMV) Growth: +233%
Body Care Industry Revenue Growth: +535%
Body Care Contribution to NIVEA Total Revenue: 76.9%
I.2. Data Methodology and Reliability (E.M.D.A)
This report is built based on a specialized data processing and analysis process in the e-commerce industry, called E.M.D.A (E-commerce Measurement and Data Analysis), developed by YouNet ECI. The use of this process is a key factor in ensuring the reliability and accuracy of recorded growth numbers.
The E.M.D.A process uses artificial intelligence (AI) technology to solve inherent problems of e-commerce data, including:
Industry and brand identification:AI technology automatically identifies products, ensuring that brand revenue is not missed across categories. platforms.
Eliminate virtual orders: Advanced algorithm detects and eliminates cases of orders for personal items or gift products, thereby providing reliable results on actual Gross Merchandise Value (GMV).
Multi-platform data synthesis: AI technology integrates brand revenue from multiple e-commerce platforms (Shopee, Lazada, TikTok Shop) into one data set common data, providing an overview and comprehensive picture of business performance.
This rigorous methodology allows NIVEA's strategic analysis based on standardized data, helping to evaluate the effectiveness of marketing and sales strategies in the most objective way.
I.3. Health & Beauty Industry Context
Vietnam's Health & Beauty (H&B) market is currently the leading product group in e-commerce, with forecasts to continue maintaining a high growth rate, from 20–25% per year in the period 2025–2027.
NIVEA's growth takes place in the context of consumer behavior shifting strongly according to trends. Comprehensive care (Wellness-focused). After the pandemic, awareness of physical and mental health has increased sharply, causing consumers to not only focus on facial care but also prioritize body care and overall health.
The Body Care segment is playing a pivotal role in the H&B industry on e-commerce. Notably, this segment recorded stable demand and high consumption frequency for essential products. This opens up great opportunities for brands like NIVEA, which has traditional strengths in the Personal Care industry.
II. Analyzing the Role of E-commerce Platforms: Dual Growth Architecture
II.1. Dual-platform Strategy
NIVEA's growth strategy is built on the principle of maximizing the advantages of each platform, implementing dual growth on both Shopee and TikTok Shop. This decision is considered the right strategy to diversify growth channels, thereby minimizing the risk of dependence on a single exchange and ensuring more sustainable growth in e-commerce. As a result, NIVEA has recorded double-digit growth continuously for the last three quarters on both of these key platforms.
II.2. Content-Commerce Model: "TikTok Discover - Shopee Closes Orders"
The success of the dual strategy lies in the fact that NIVEA has clearly assigned complementary roles to each platform, in accordance with the popular beauty shopping behavior model in 2025: "TikTok discovers - Shopee closes orders".
A. TikTok Shop: Activation and Acceleration Channel
TikTok Shop is used by NIVEA as a strategic direction to reach young people (Gen Z) and accelerate purchase decisions through video content. TikTok serves as an "inspiration channel".
The conversion mechanism on TikTok Shop is based on a combination of content and commerce (content-commerce). Consumers discover products through KOC's short videos, authentic reviews, and livestreams. This trend is proven by data: 8/10 Vietnamese users have purchased beauty products after watching review videos on TikTok. This blend helps significantly shorten the purchase journey, from "see" to "buy" in just a few minutes, taking advantage of the trend of buying with emotion and trust.
B. Shopee: Platform Conversion and Retention Channel
Shopee maintains its role as a stable revenue pillar and platform conversion channel. Shopee helps retain good customers thanks to the after-sales policy and customer loyalty programs that have been built by NIVEA for many years.
In terms of revenue proportion, Shopee is still a key e-commerce platform, contributing 59.6% to NIVEA's total revenue proportion in the period from the first half of 2024 to the first half of 2025. Shopee is the "key channel". menu", where shoppers, especially Millennials, complete transactions by taking advantage of vouchers and shipping policies.
II.3. In-Depth Analysis of Omni-Channel Growth Structure
The aggressive expansion into TikTok Shop helps NIVEA combat the potential saturation of Shopee. Buyers on TikTok Shop often have an impulsive buying mentality, are less likely to compare prices and make faster decisions, allowing NIVEA to optimize revenue through content value rather than competing purely on price.
However, the dual growth structure poses a major omnichannel operational challenge. NIVEA e-commerce managers need to continuously optimize strategy: focus on content and creator investment on TikTok Shop, and optimize promotions and after-sales on Shopee.
Compare the Strategic Roles between TikTok Shop and Shopee:
TikTok Shop (Discovery & Activate Activation):
Strategic Role: Discovery & Activation (Content-Commerce).
Consumer Behavior: Emotional purchasing, Targeting Gen Z.
Main Growth Mechanics: Video content, Livestream, KOCs, Shortening the buying journey goods.
Shopee (Conversion & Retention):
Strategic Role: Conversion & Retention (E-commerce Platform).
Consumer Behavior: Researched Purchase, Voucher Hunting, Loyalty.
Master Growth Mechanism Weakness: After-sales, Customer loyalty program, Contributing 59.6% of GMV.
III. Product Portfolio Analysis: Key SKU Competitive Advantage
III.1. Identity and Positioning of Key SKU
The second key factor in NIVEA's success is its strategy of focusing resources on a single Key SKU, identified as Super 8 Night Nourish – Night Brightening Body Lotion (Purple).
The strategic goal of this Key SKU is very clear: to become a representative product and a “top-of-mind” when users mention the brand. After optimizing awareness and purchasing power for the Key SKU, this product is used to introduce and drive conversions for products in the same industry or neighboring categories.
The Super 8 Night Nourish product has a Unique Selling Proposition (USP) focusing on intensive care. The product's formula is aimed at intensive moisturizing and nighttime recovery (Nighttime Nourishment, Repair and Renewal).
III.2. Optimize Key SKU Impact
Focusing on one Hero SKU completely addresses the risk of Cannibalization (internal category competition). Instead of having many products compete with each other, Key SKU Super 8 Night Nourish is used as a strategic "piece of the puzzle", pulling conversions for other products under the brand.
The huge success (Body Care industry grew +535%) proves that NIVEA has accurately grasped the trend of specialized care, especially Night Routine. NIVEA has transformed from its traditional Mass Moisturizer image to Body Skincare Expert with specialized solutions, and the +535% growth confirms that consumers are willing to pay for this specialization.
III.3. Phased Key SKU Deployment Strategy
NIVEA implemented the Key SKU strategy flexibly, adjusting the sales format to optimize over time and platform characteristics:
Setup Phase (H1'24, Shopee): Promoted Super 8 Night Nourish as a single SKU to build trust news and platform sales.
Order Value Growth Phase (H2'24, Shopee): Introduce Combo SKU, combining Purple Body Lotion with Yellow and Pink lines to encourage product use at different times of the day, thereby increasing Average Order Value (AOV).
Awareness Expansion Phase (H1'25, TikTok Shop): Switch to single mixed SKU, using the Purple Body Lotion line as an identity anchor to effectively introduce the Yellow and Pink lines to new customer files.
III.4. Cross-selling Effectiveness
Key SKU Super 8 Night Nourish also plays an important role in the cross-selling strategy. NIVEA has actively cross-sold this night body care product with neighboring products such as sunscreen, deodorant or makeup remover. This reinforces the Purple SKU's role as an "Entry Product", shifting customer confidence to NIVEA's other categories.
IV. Lessons From NIVEA Case Study and Competitive Analysis
NIVEA's breakthrough growth case study brings three core strategic lessons, especially important in the context of the Health & Beauty market in Vietnam's e-commerce market which is shifting strongly:
1. Lessons on Cannibalization Risk (Internal Category Competition): Building a Hero SKU is clearly the key solution to the Cannibalization problem.
NIVEA case: NIVEA has succeeded in positioning Super 8 Night Nourish as an anchor point, preventing competition between other body care product lines. This product not only sells itself but also pulls sales for neighboring lines.
Converse Strategy: If a brand does not have a clear SKU Key, products in the same category are at risk of competing with each other. This risk causes marketing costs to increase but conversion efficiency is low, scattering resources and weakening brand positioning in the minds of consumers.
2. Lessons on Exploiting the Trend of Specialized Care (Night Routine): The success of the NIVEA Body Care industry (+535% growth) comes from exploiting the trend of specialized care, specifically the night care routine (Night Routine).
Consumer Psychology: Modern consumers not only look for basic moisturizing products but prioritize intensive solutions with active ingredients (Active Ingredients) are clear and effective (like Vitamin C, E, Coenzyme Q10 in Super 8 Night Nourish).
Competitive Advantage: By focusing on night care, NIVEA positions itself above the traditional Mass Moisturizer segment, creating a clear competitive advantage over its peers.
3. Lessons on Content IP Investment: The NIVEA Dual-Platform Strategy is only effective because the brand has invested heavily in Content and Creators (Content-Commerce), especially on TikTok Shop.
Success Model: Competitive differentiation in the beauty industry has shifted from a war of prices and vouchers to a battle of Empathy and Authenticity real.
Recommendation: Brands need to continuously use campaigns such as Branded Mission, motivating KOCs to create "authentic product love" to build Content Assets (Content IP). This asset helps raise the barrier to entry for competitors, as brand value will be tied to the content experience and trust from the community, not just the product formula.
V. Risk Analysis and High-Level Strategic Recommendations
V.1. Strategic Concentration Risks Analysis
Overreliance on one Key SKU and the Body Care product line (accounting for 76.9% of core product revenue) creates significant concentration risks:
Supply Chain Risk: Focusing on one SKU increases the risk of supply chain problems. Any errors in demand forecasts or disruptions in Super 8 Night Nourish production could cripple more than three-quarters of this strategic category's revenue.
Obsolescence and Competitive Risk:The Beauty & Personal Care market has a high rate of innovation. If major competitors quickly launch equivalent Night Nourish products, NIVEA will face price competition pressure and lose market share.
V.2. Dual-Platform Challenges
The Dual Growth Strategy, although effective, requires complex and continuous management.
Competitive Transformation Pressure: The key to competition in the Health & Beauty industry is shifting from mere promotion to consumer understanding and authenticity. NIVEA must continuously invest in creative content, KOCs, and livestreams to maintain its Content-Commerce advantage.
Profit Margin Management: NIVEA needs to strike a balance between satisfying the voucher-hunting mentality on Shopee and maintaining higher pricing based on entertainment/emotional value on TikTok Shop.
V.3. Strategic Recommendations
A. Sustainable Growth Strategy (SKU Diversification and IP Building)
Expand the "Key SKU Ecosystem": Develop highly specialized satellite SKUs (e.g., intensive body serum) to strengthen the Nighttime Routine, reducing reliance on single Purple SKUs.
Invest in Content Assets (Content IP): Maintain and replicate campaigns that create authentic and resonant content to build barriers to entry for competitors.
B. Multi-Channel Pricing Strategy to Optimize Profits
Non-homogeneous Pricing through Exclusive Sales Packages: Instead of adjusting the basic price, apply the strategy of creating exclusive sales packages and different voucher structures for each floor. For example: Promote Combo packs to increase AOV on Shopee to capitalize on voucher hunting behavior, but launch smaller retail packs with high emotional value on TikTok Shop to maintain profit margins.
VI. Frequently Asked Questions (FAQ)
1. What is NIVEA's Key SKU Strategy? The Key SKU (Key Product) Strategy is where NIVEA focuses all of its communication and sales resources on a single product, Super 8 Night Nourish - Night Brightening Body Lotion (Purple). This product acts as a "top-of-mind" to attract customers, then drive conversions to other products in the category.
2. How different are the roles of Shopee and TikTok Shop in NIVEA's dual growth strategy? Shopee and TikTok Shop play complementary roles :
- customer loyalty program.
3. Which product industry does the +535% growth in NIVEA's revenue come from?The +535% growth compared to the same period in H1/24 comes from the Body Care industry. This industry has become a pillar of growth, contributing 76.9% to NIVEA's total revenue on e-commerce.
4. How is the data in this report measured?The data is processed and analyzed using the proprietary E.M.D.A (E-Commerce Measurement and Data Analysis) process. This process uses AI technology to accurately identify brands, synthesize multi-platform data, and importantly, eliminate "virtual orders" to ensure the reliability of actual Gross Merchandise Value (GMV).
NIVEA's +233% growth success in H1/2025 is a typical Case Study of building a value-based strategy and complementary distribution channels.
Key focus Super 8 Night Nourish SKU is an effective weapon to help NIVEA fight the risks of the "3 No Strategy" (No Positioning, No Differentiation, Only Promotion) that is popular on e-commerce. By creating a uniquely positioned product (intensive night care) and using it as an anchor for the entire strategy, NIVEA has moved from competing on price to competing on value (Value-based competition). This fits perfectly with the 2025 H&B market trend that requires authenticity and high product quality.
The fact that NIVEA recorded double-digit growth on both Shopee and TikTok Shop proves that the brand has achieved the ideal combination of Speed (TikTok Shop) and Stability (Shopee). This strategy balances exploiting the high growth and content risk-taking of TikTok Shop (the discovery channel) with strengthening the stable, lower-risk revenue base of Shopee (the customer retention channel). This is the formula to ensure not only rapid but also highly sustainable growth in the Vietnamese e-commerce market.
To maintain growth momentum and cope with future multi-channel challenges, brands need to continue to invest in in-depth data analysis and creative content strategies. Understanding the complementary roles of each platform, from Shopee to TikTok Shop, is key to optimizing profits. If your business is looking for a partner capable of operating and implementing a flexible e-commerce strategy, especially in building and optimizing high-converting content campaigns, Tan Phat Digital is the unit that can support you in applying this successful model. Take action now to convert data into breakthrough revenue.
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