Download - Unilever Hair in Asia
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Unilever Asia Hair Care
A Regionalized Global Strategy that drives & outpaces Market Growth & builds Margins
MichelDallemagneSVPHairAsiaAfrica 14th November2007
Mumbai
Thispresentationmaycontainforward-lookingstatements,including'forward-lookingstatements'withinthemeaningoftheUnitedStatesPrivateSecuritiesLitigationReform
Actof1995. Wordssuchas'expects','anticipates','intends'orthenegativeofthesetermsandothersimilarexpressionsoffutureperformanceorresults,includingfinancial
objectivesto2010,andtheirnegativesareintendedtoidentify suchforward-lookingstatements. Theseforward-lookingstatementsarebaseduponcurrentexpectationsandassumptionsregardinganticipateddevelopmentsandotherfactors affectingtheGroup.
Theyarenothistoricalfacts,noraretheyguaranteesoffuture performance. Becausetheseforward-lookingstatementsinvolverisksanduncertainties,thereareimportant
factorsthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedorimpliedbytheseforward-lookingstatements,including,amongothers,competitivepricing and
activities,consumptionlevels,costs,theabilitytomaintainandmanagekeycustomerrelationshipsandsupplychainsources,currencyvalues,interestrates,theabilityto
integrateacquisitionsandcompleteplanneddivestitures,physicalrisks,environmentalrisks,theabilitytomanageregulatory,taxandlegalmattersandresolvependingmatterswithincurrentestimates,legislative,fiscalandregulatorydevelopments,political,economicandsocialconditionsinthegeographicmarketswheretheGroupoperatesand
neworchangedprioritiesoftheBoards. FurtherdetailsofpotentialrisksanduncertaintiesaffectingtheGrouparedescribedintheGroup'sfilingswiththeLondon
StockExchange,Euronext AmsterdamandtheUSSecuritiesandExchangeCommission,includingtheAnnualReport&AccountsonForm20-F. Theseforward-looking
statementsspeakonlyasofthedateofthispresentation
Safe harbour statement
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Agenda
Our goals for 2007-10
A unique in-depth knowledge of Asian consumer needs
The booming Hair Care market
Hair care Asia experiences its best growth performance, outpacingorganic market growth
Our growth is driven by three key thrusts
Future challenges
Summary
We will continue to deploy a globally aligned 3-4 brand portfolio
able to deliver:
Our goals for 2007-2010 is superior sustained performance
- Double digit turnover growth
- Market share gains
- Continuous margin improvement through better product mix
and positive strategic pricing
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More centralised portfolio and brand management, to reduce risk and
accelerate roll outs
Sharper investment choices
Full brand portfolio deployment, with regional adjustments
Focus on innovation as THE key growth driver
Better products through deployment of best-in-class technology
A shift to more premium offerings, less reliance on price discounts
Key enablers
A unique in-depth knowledge of Asian consumer needs forms
the base of superior sustained category performance
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A deep knowledge of very diverse habits
ChinaIndia Philippines Japan
Wash Water
Preferred packs
Styling days
Conditioner usagedays
Shampoo usagedays
Pre wash habitOiling
Sachets
Buckets
Bottles BottlesSachets
Tubs Buckets Shower
Ethnicity defines hair fibre condition and quality
ChinaIndia Japan
Length
Color
Texture
Shape
Diameter
Long
darker
Medium
Round/ Elliptical
High
Very long
dark
Soft
Elliptical
Medium
Medium short
Very dark
Coarse
Round
Highest
D > 70 microns D > 80 microns D > 90 microns
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Factors that influence the scalp condition
Lipids (mortar)Corneocytes (bricks)
Environment, diet, play a significant role
LowerHigherMeasureoflipids
Lowindandruff
UniformCeramides
LowerHigherScalpbiomarkers
Positivefordandruff
HighHistamineresponse
DryGreasyTypeofdandruff
LowerHigherSebum
UKChinese
ChinaParameter
A diversity in top consumer hair needs
245Shine
514Dandruff
353Longer/Strong132Damage
421HairFallJapanChinaIndia
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Sharply tailoring leading technology building blocks
through Surface + Fibretechnology
+HABITS
HAIR NEEDS
FIBRE & SCALP BIOLOGY
Tailoring
Technolo
gy
e.g. Damage
Damage Intensity
Lubricationa
nd
Restoratives
India
China
Japan
The Hair Care market is booming
Hair is like my handbag Consumer Quote
- Hair care is an integral part of the Asian beauty care offering & fashion explosion
- 4 billion population, with increasing income, extended lifespan and with a
dominant proportion of long hair
(Video)
This fuels an explosion of more sophisticated & premium beauty
Hair Care regime & rituals, continuously growing the market
- Shampoo penetration in on a steady increase in China, India & Indonesia
- Additionally, the usership of post-shampoo ranges is fast-increasing across Asia
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In Hair, the bulk of our growth will come from
mass retail Wash & Care our focus area
Colorants
MASSRETAIL
DailyHairCare
Wash &
Care
20bn
Styling
4.2bn
2004
5.0bn 6.4bn
2007 est. 2012est.
Salons
GlobalHairMarket
Asia W&C growing
Unilevermarketshare 15%
Hair Asia - A 5 billion euro market with consistent growth across key regions
2007 2012
1.5 B 2.0 B
Asia Hair market projected to add 1.4bn by 2012. China and SA will lead this growth
+7%
2007 2012
2.1 B 2.2 B
2007 2012 1.0 B 1.3 B
+1%
+5%
2007 2012
0.5 B 0.9 B
+12%G. China
SA
SEA
NEA
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Hair care Asia experiences its best growth performance,
outpacing organic market growth
1) Growing double digit ahead of market & growing shares
2) Getting stronger where we lead historically, and leading the innovation initiative in China
Hair care Asia experiences its best growth performance,
Outpacing Organic Market Growth
Unilever Hair Asia growing ahead of market growth
Sunsilk, Lux and Clear, our 3 biggest brands drive turnover growthMost other brands also contribute
Growth is driven by China, SA and SEA clusters
Sep '07 Cum growth UL topline Market
NEA cluster Low single digit (decline) Low single digit
China group Double digit + Double digit
SEA & SA cluster Double digit Mid single digit
Asia Double digit Mid single digit
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Hair care Asia experiences its best growth performance
Improving margins
Hair is amongst the most profitable categories for Unilever Asia
The topline drive is coupled with improvement to gross margins
A combination of premium and innovative mixes, right strategic
pricing and cost effectiveness have further improved gross margins
Up 80 bps
Up 110 bps
Gross Margin improvement
Avg 05 Avg 06 YTD 07
Our Growth is driven by 3 Key Thrusts
1) A more complete 3-4 brand portfolio of globally aligned, bigger brands, in each country
2) That fully taps the full Market Pyramid Potential by meeting:
- Key consumer segment needs
- Key market pricing points (from low LSM to High LSM)
- Key country stage of development opportunities
3) Supported by leading technology and fewer, bolder initiatives
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A LARGE, FEMALE, BEAUTY CORNERSTONE BRAND
A FAMILY VALUE & HEALTH FOUNDATION BRAND
A more complete 3-4 brand portfolio of globally aligned, bigger brands in each country
A DUAL GENDER AD EXPERT A PREMIUM CARE & DAMAGE REPAIR EXPERT
Rural
Urban/Rural
Urban
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Win the beauty game with superior 7days damage repair
Red status
C:/Events Matrix/Events Matrix SEA SA/SEA AP08 Meeting, Jul 07.
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A Brand Portfolio that fully taps the full market pyramid potential
Key country stage of development opportunities
JAPAN
Shampoo+Conditioner+RinseOffTMT+LeaveOnTMT
CHINA
CHINA
Shampoo+Conditioner+Mask+LeaveOn
INDOINDIA
Shampoo+ConditionerINDONESIA
Shampoo+Conditioner+Mask
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Supported by leading technology and fewer, bolder initiatives
Lux Hair China Lux Hair Japan
Dove Hair India Clear Philippines
Our Key Challenges
Exploiting a rapidly expanding urban market (Dove Hair)
whilst driving penetration & consumption in rural areas (Clinic),
in a market growing by15%p.a.
India
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Shampoo penetration Indexed Consumption
82
78
76
68
Affluent
Aspirers
Urban Striving
Rural
170
120
80
50
There are many Indias - each with huge growth opportunities
JOBS TO BE DONE
ROUTESROUTES
Aff luen t
Asp irer s
Urban Striving
Rural
Premium SHAMPOO & POST-SHAMPOO
Formats
URBAN UPTRADING
PENETRATION and
FREQUENCY
OF
WASH
Customized strategies for each India
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Our Key Challenges
Growing market share, lead by Lux Hair, to create superior value &
provide valuable innovation learnings for other markets in Asia
Japan
G CHINA
1.5bnMAT : 7%
SEAA
1.0 bn
MAT : 5%
NEA
2.1bnMAT : 1%
SA
0.5 bnMAT : 12%
Japan is the biggest Hair Market in Asia
(2nd biggest in the world behind USA)
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WashFrequency
H. Con
Shampoo
Wash54 76321
In a week
Evening, before bed time
93 %With body wash
Use hair dryer
66 %
60% use Stylingproducts (Mousse,
Wax, Spray)
70% coloured hairin last year
When
Body
Drying
PostWash
Colouring
79 %
76%
44 %
72 %
93 %
JapaneseBathroom
93%
60%
Japanese womans hair regimethe most sophisticated in the world
365 washes
35 hours under the blow-drier
55 styling irons sessions
6 razor cuts
5 straightening perms
8 colour treatments
1,000 hours in air-con environment
Severely Damaged Hair
Combing
Blow dryer
Brushing
Bleach / Colouring (70 %)
Perm (33%)
Styling Iron
Virgin hair
A vicious cycle of damage
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Lux Hair architecture fully leverages the key drivers of the market
Daily Damage CareEnhance Shine
Severe Damage CareRestore Shine
Sustaining a strong leadership vs. persistent aggressive attacks
there are many new seductive offers that come up...but in the end wealways go back to Lux. (consumer blog entry)
0
2
4
6
8
10
12
14
16
7 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 w42 w44Local A Global C Local T Local I Local S Global C Global H
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Lux stays ahead with exciting innovations
Our Key Challenges
A challenger mindset with the launch of a new Clear Anti-Dandruff mix
China
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G CHINA
1.5bnMAT : 7%
SEAA
1.0bnMAT : 5%
NEA
2.1bnMAT : 1%
SA
0.5bnMAT : 12%
By 2010, the China hair market will be as big as Japan
The AD segment is biggest in China nearly a 1 Billion Euro opportunity
55% 4%
22%
35%
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A bold challenge with the launch of CLEAR
Growing steadily in top accounts
RMB
weekly moving upto 30th Sep
100
150
200
250
300
350
400
450
500
550
600
650
700
12/Ma
r19/
Mar26/
Mar2/A
pr9/A
pr16/
Apr23/
Apr30/
Apr 7/May14/
May21/
May28/
May
4/Jun
11/Jun
18/Jun
25/Jun 2/J
ul9/J
ul16/
Jul23/
Jul30/
Jul6/A
ug13/
Aug20/
Aug27/
Aug 3/Sep10/
Sep17/
Sep24/
Sep
weeklymoving upto 30th Sep
5%ShareinHandlers
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In Summary
Hair is an attractive business, leading value creation for UL Asia
Unilever is a strong global player with a growth track record
Clear and Lux expansion are examples of whats different now
Full 3-4 brand portfolio deployment
Strategic pricing full market piano
Bolder innovation
Better products. More premium propositions.
Supported by best available technology.Faster roll outs
Unilever Asia Hair Care
A Regionalized Global Strategy that drives & outpaces Market Growth & builds Margins