unilever hair in asia

7/29/2019 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)

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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

unilever hair in asia

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