Jamie Matusow, Editor10.01.14
Update: Unilever ranks at #2 on our latest report Top 20 Global Beauty Companies 2021.
London, England; Rotterdam, The Netherlands
www.unilever.com
Corporate Sales: $68.6 billion
Beauty Sales: $24.9 billion
Key Personnel: Paul Polman, chief executive officer; Alan Jope, president, Russia, Africa & Middle East; Kees Kruythoff, president, North America; Dave Lewis, president, personal care; Jan Zijderveld, president, Europe.
Major Products: Axe/Lynx, Dove, Lifebuoy, Pond’s, Rexona, Signal, Close-Up, TRESemmé, Sunsilk, Clear, Lux, Vaseline, Tigi, Iluminage.
New Products: Dove True Tone, Dove Advanced Hair Series, Dove Men+Care, IOMA, Regenerate Enamel Science, Iluminage Youth Cell Skincare, TreSemmé 7 Day Keratin Smooth range, St. Ives Oatmeal Scrub & Mask, Vaseline Spray & Go, Axe Apollo.
Comments: While Unilever’s overall sales decreased by 3% to $68.6 billion, due mostly to a negative impact from foreign exchange, corporate growth was driven by Personal Care and Home Care, which CEO Paul Polman said continue to outperform the markets. Here, as in other categories, most of the growth came from emerging markets.
Personal Care, Unilever’s largest category, proved strong, with sales topping $24.9 billion, though they remained flat with those of the previous year.
In the company’s annual report, Polman said that 2013 had been another year of top and bottom line growth.
Illuminage Youth Cell Skincare, which includes a handheld laser, is one of Unilever’s newly launched premium beauty brands.
Underlying sales growth of 7.3% in Personal Care was spread almost equally across all sub-categories, with hair care, skincare, deodorants and oral care each growing more than 5%. Innovations such as Dove Repair Expertise, launched in more than 50 markets, Vaseline Spray & Go moisturizers and the Axe Apollo campaign across more than 70 countries, contributed to the bottom line. The acquisitions of Alberto Culver, Sara Lee, Kalina and Toni & Guy reportedly helped to transform the portfolio.
Polman said, “Our Personal Care category continued to grow significantly and accounted for 36% of Group turnover in 2013, but could improve its share of the more premium segments of the market.”
Because the aspirations and budgets of consumers are different, Unilever has focused on a segmented market strategy, reaching high—and low.
Eye on Premium
The consumer goods manufacturer has begun developing—or boosting through acquisitions/collaborations—its Premium business in Personal Care (and other segments), because, as Polman states, “Products which consumers prefer can command higher prices than their competitors—and we are increasingly focusing on the premium segments of our markets, which offer the potential for better margins and higher profits.”
For example, IOMA, a recent acquisition, is a premium skincare brand for consumers who want the finest quality. It uses state-of-the-art diagnostic technology to study an individual’s skin and tailor a custom skincare regimen. It gives Unilever access to the premium skincare market and channels where they are under-represented.
The same is true for Dove’s premium hair care portfolio, which Unilever reports has grown almost two times faster than the premium hair market.
But while a move toward “premiumization” delivers growth and drives higher margins, Unilever is also committed to offering a variety of affordable brands, which can also boost sales. Take Lifebuoy, for example. It serves a vital purpose in basic hygiene, one of Unilever’s key social causes, and has had an average underlying sales growth of 18% per year in the last three years. According to Unilever, the soap has become the world’s No. 1 antibacterial brand.
First Half 2014 Results
In the mass market, St. Ives has just launched a new Gently Nourished Oatmeal Scrub + Mask, which acts as a facial scrub/cleanser, but can also be used as a mask to rejuvenate skin.
For the first half of 2014, Unilever reported top and bottom line progress despite many economic and global challenges, including a slowdown in market growth in emerging countries, especially in Asia, and a still-weak North American and European base. Personal Care was a positive note, as it continued to grow ahead of slowing markets due to what Unilever calls “a strong innovation program.”
Compressed deodorants in Europe and Regenerate Enamel were flagged as standouts, as were launches of Lifebuoy in China, Omo in Arabia and Clear in Japan. TRESemmé benefited from the success of the 7-Day Keratin Smooth range, and Dove Oxygen Moisture made good progress in the U.S. In skin care, Fair & Lovely delivered strong growth and the Dove Purely Pampering range was extended into nourishing body oil.
In the first half, Unilever announced a couple of its premium product launches, including new higher-end ranges as part of its Dove, Dove Men+Care and Lynx brands; its Iluminage Skin Smoothing Laser (a joint venture; please see beautypackaging.com for details on this multi-product anti-aging skincare line launch); and the toothpaste and tooth serum called Regenerate Enamel Science. Additional premium launches are in the works, based on extensive R&D.
Like L’Oréal, Unilever also stresses a drive toward reducing its global footprint and improving the lives of all those it serves, through sustainability efforts, social programs and more.
In an acknowledgement of the need for improved packaging, in April of this year, Unilever announced what it called a “packaging breakthrough,” in which new technology will use “far less plastics in bottles for personal care.” The company said it was adopting technology that will cut the amount of plastic it needs to use in each bottle by 15%. The technology, developed with Zotefoams PLC of Britain, injects tiny gas pockets into bottle walls, reducing the weight and amount of plastic used, without sacrificing robustness.
Unilever said it would be introducing the technique first in its Dove Body Wash bottles, which—with the 33 million sold in Europe in 2013— would mean a savings of 275 tons of plastic.
The multinational company then intends to expand the technique to other product lines. It also plans to relinquish patent rights by 2015 so that other companies can use the method.
London, England; Rotterdam, The Netherlands
www.unilever.com
Corporate Sales: $68.6 billion
Beauty Sales: $24.9 billion
Key Personnel: Paul Polman, chief executive officer; Alan Jope, president, Russia, Africa & Middle East; Kees Kruythoff, president, North America; Dave Lewis, president, personal care; Jan Zijderveld, president, Europe.
Major Products: Axe/Lynx, Dove, Lifebuoy, Pond’s, Rexona, Signal, Close-Up, TRESemmé, Sunsilk, Clear, Lux, Vaseline, Tigi, Iluminage.
New Products: Dove True Tone, Dove Advanced Hair Series, Dove Men+Care, IOMA, Regenerate Enamel Science, Iluminage Youth Cell Skincare, TreSemmé 7 Day Keratin Smooth range, St. Ives Oatmeal Scrub & Mask, Vaseline Spray & Go, Axe Apollo.
Comments: While Unilever’s overall sales decreased by 3% to $68.6 billion, due mostly to a negative impact from foreign exchange, corporate growth was driven by Personal Care and Home Care, which CEO Paul Polman said continue to outperform the markets. Here, as in other categories, most of the growth came from emerging markets.
Personal Care, Unilever’s largest category, proved strong, with sales topping $24.9 billion, though they remained flat with those of the previous year.
In the company’s annual report, Polman said that 2013 had been another year of top and bottom line growth.
Illuminage Youth Cell Skincare, which includes a handheld laser, is one of Unilever’s newly launched premium beauty brands.
Polman said, “Our Personal Care category continued to grow significantly and accounted for 36% of Group turnover in 2013, but could improve its share of the more premium segments of the market.”
Because the aspirations and budgets of consumers are different, Unilever has focused on a segmented market strategy, reaching high—and low.
Eye on Premium
The consumer goods manufacturer has begun developing—or boosting through acquisitions/collaborations—its Premium business in Personal Care (and other segments), because, as Polman states, “Products which consumers prefer can command higher prices than their competitors—and we are increasingly focusing on the premium segments of our markets, which offer the potential for better margins and higher profits.”
For example, IOMA, a recent acquisition, is a premium skincare brand for consumers who want the finest quality. It uses state-of-the-art diagnostic technology to study an individual’s skin and tailor a custom skincare regimen. It gives Unilever access to the premium skincare market and channels where they are under-represented.
The same is true for Dove’s premium hair care portfolio, which Unilever reports has grown almost two times faster than the premium hair market.
But while a move toward “premiumization” delivers growth and drives higher margins, Unilever is also committed to offering a variety of affordable brands, which can also boost sales. Take Lifebuoy, for example. It serves a vital purpose in basic hygiene, one of Unilever’s key social causes, and has had an average underlying sales growth of 18% per year in the last three years. According to Unilever, the soap has become the world’s No. 1 antibacterial brand.
First Half 2014 Results
In the mass market, St. Ives has just launched a new Gently Nourished Oatmeal Scrub + Mask, which acts as a facial scrub/cleanser, but can also be used as a mask to rejuvenate skin.
Compressed deodorants in Europe and Regenerate Enamel were flagged as standouts, as were launches of Lifebuoy in China, Omo in Arabia and Clear in Japan. TRESemmé benefited from the success of the 7-Day Keratin Smooth range, and Dove Oxygen Moisture made good progress in the U.S. In skin care, Fair & Lovely delivered strong growth and the Dove Purely Pampering range was extended into nourishing body oil.
In the first half, Unilever announced a couple of its premium product launches, including new higher-end ranges as part of its Dove, Dove Men+Care and Lynx brands; its Iluminage Skin Smoothing Laser (a joint venture; please see beautypackaging.com for details on this multi-product anti-aging skincare line launch); and the toothpaste and tooth serum called Regenerate Enamel Science. Additional premium launches are in the works, based on extensive R&D.
Like L’Oréal, Unilever also stresses a drive toward reducing its global footprint and improving the lives of all those it serves, through sustainability efforts, social programs and more.
In an acknowledgement of the need for improved packaging, in April of this year, Unilever announced what it called a “packaging breakthrough,” in which new technology will use “far less plastics in bottles for personal care.” The company said it was adopting technology that will cut the amount of plastic it needs to use in each bottle by 15%. The technology, developed with Zotefoams PLC of Britain, injects tiny gas pockets into bottle walls, reducing the weight and amount of plastic used, without sacrificing robustness.
Unilever said it would be introducing the technique first in its Dove Body Wash bottles, which—with the 33 million sold in Europe in 2013— would mean a savings of 275 tons of plastic.
The multinational company then intends to expand the technique to other product lines. It also plans to relinquish patent rights by 2015 so that other companies can use the method.
