Hindustan Unilever (HUL) chief executive and managing director Rohit Jawa said the firm’s goal was to build a “future-fit portfolio” that would enable the firm to meet the rapidly evolving needs of its beauty consumers.
“The Indian beauty market is rapidly shifting with changing lifestyles, increased disposable income, exposure to global trends and a growing emphasis on self-care and wellness,” said Jawa.
The six specific segments it has highlighted include face cleansing, sun care, light moisturisation, serums and treatments, weatherproof body care, and masstige beauty.
“We've identified six key demand spaces, big bets, which we believe will grow disproportionately over the next few years. We already have a strong INR 2,000 crores portfolio across these big bets, and we continue to invest to scale them up,” said Jawa.
He added that these segments were growing by 50% on e-commerce alone.
“The market will keep fragmenting; the market will keep getting more premiumised and more demand spaces – sub-demand spaces will keep opening up. These six are the ones which we have called out that we are going to lean in, and this is where you'll end up seeing more amount of action,” added Ritesh Tiwari, chief financial officer of HUL.
For instance, the firm could extend its brands into more of the identified spaces to capture demand.
Additionally, the firm has also developed new brands like Novology to move into new spaces.
A beautiful vision
Jawa elaborated that HUL has been undertaking changes across its beauty portfolio which includes brands like Dove, Lakme, Simple, and Love, Beauty & Planet.
Not only has the firm pushed innovation, but it has also revamped its brands by refreshing product, packaging, and communication.
“To build and bring our vision of creating a world-class beauty company to life, we are embedding core capabilities into our present processes,” said Jawa.
Jawa elaborated that the firm has invested in enhancing the desirability of products using superior technology, premium packaging solutions and formats.
Over the last quarter, for instance, the firm has launched a sun stick and a blush stick with Lakme.
“To continue to innovate with speed, we will invest and expand our footprint of nano factories and supply chain.”
Jawa added that the brands have been pivoting towards more digital media and influencer marketing as consumers move towards digital mediums.
Lastly, HUL has been working to establish itself as the beauty authority through its initiatives such as Lakme Fashion Week and the introduction of a beauty collective earlier this year.
Effective April 1, HUL split its beauty and personal care business into beauty and well-being (B&W) and personal care (PC).
