Dr. Wolff Stays "On Track"
The Group Has Weathered the Crisis Well With Demand-Driven Products
The Dr. Wolff Group in Bielefeld closed the 2020 financial year with a turnover of 341.1 million euros. This represents an increase of almost nine per cent compared to the previous year, according to the company. Moreover, the company was able to continue this growth in the first quarter of 2021.
Corona Drives Decisions
The manufacturer attributes part of this growth to product developments that were quickly able to meet a high demand. At the start of the pandemic, for example, they said they had a hand disinfectant gel ready for the market within just a few days. This was followed at the end of 2020 by the scientific verification of a limited virucidal hand cream, a hand disinfectant gel that sanitises hands without soap and water, and a travel-size hand gel that was also launched as a biocidal product.
The cosmetics business was more problematic. Despite two lockdowns, which resulted in a total of eight weeks lost in hair and beauty salons, business in these care segments remained stable. The colour cosmetics segment, on the other hand, suffered from the pandemic and recorded a loss, the company said.
Varying Performance for Cosmetics Divisions
The personal care brand Alcina - with a turnover of 40.9 million euros sharing 12 per cent of the company’s turnover - focused on products that were in high demand by consumers and salons during the pandemic. According to the company, the aim was to support B2B customers in areas such as salon management or further training in craftsmanship through videos and digital services. The brand also successfully catered to the increased demand from consumers for conditioning hair colours with its Color Gloss & Care series. In addition to the colour treatment in the salon, hairdressers can offer clients colour refreshers for home, which can be used to bridge a canceled salon visit.
Work from home and "stay at home" policies led to a slowdown in demand for colour cosmetics. Wearing facemasks put the focus on the eyes, an opportunity that the company capitalised on with new eyeliner pencils, eye shadows and brow mascara. Lip and face products, on the other hand, have had a harder time since 2020.
Slower Growth in Europe
The group is cautiously optimistic for the new year. While they stress that business in Asia is normalising, business in Europe is looking more sluggish. As a result, Managing Partner Eduard R. Dörrenberg expects business to slow down in the second quarter, while the group was still able to achieve a plus of three per cent in the first quarter.
Source, photo: Dr. Wolff