Unilever China
Rohit Jawa, EVP North Asia
Waifung Loh, VP Customer Development Jun Fang, VP Data and Digital
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China : Sustained growth
GDP | Consumption |
6% ~ 6.5% | 7% ~ 8% |
8 | 10 | |||||||||||||||||||||
7 | 8 | |||||||||||||||||||||
6 | 6 | |||||||||||||||||||||
5 | 4 | |||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2015 | 2016 | 2017 | 2018 | 2019 |
Source: China bureau of statistics
China : Significant growth opportunity
Market growth
~6%
Online
Offline
20152019
Per capita consumption (Euro) China vs. Developed markets
40 | US | JP | CN | ||||
34 | |||||||
34 | 31 | ||||||
56
HairLaundry
Source: Kantar, Nielsen, UL categories | Source: Euro Monitor, World Bank |
Changing China : Digitization
Digital life | Omni channel |
Hyper | Online |
Small Super | |
Market | |
/ Mini | |
Grocery
CVS
Large Specialist
Super Stores
(Baby, COS)
Source: Kantar
Media fragmentation
Traditional
eCommerce
Digital
Social
Source: PHD estimation, FMCG
Changing China : Upgradation
Increasing aspiration | Rise of lower tier | |||||
cities | ||||||
59% | ||||||
67% | ||||||
Population | Total Consumption | |||||
Personalization | Sub | Experiential | 2030E | 2030E | ||
culture |
China pride Convenience Balanced life
Sources: Kantar
More choice
No. of new brands
Shampoo
Offline +200
Online +520
Source: Nielsen, Kantar, 2017-2018
Unilever in China : History
1913 | |||||
Lever Jr China visit | 1986 | 2002 | 2012 | 2014 | 2017 |
Trading began | Re-entry | Hefei largest site | Tianjin site | Meishan factory | Korea M&A |
1923 | 1999 | 2009 | 2013 | 2019 | ||
China Soap Co. | Unilever Co. | Global R&D centre | Water M&A | Japan M&A | ||
Ltd | in Shanghai | |||||
Unilever in China : Built to scale
World class
manufacturing
8 sites, 90% made in China 30
3P manufacturing and design
Deep and wide | |
reach | |
No. of | |
Distributors | 800 |
2 X | |
400 | |
2015 | 2019 |
26 logistic centers | |
30 key account relations | |
80% weighted reach |
Digital commerce
25% share of business
200 dedicated team
Unilever China : Unique, strong talent proposition
Local leadership | Top employer | Diverse team |
11 of 12 top team are Chinese | No 1 FMCG employer for 2 years | 50% women |
97% managers local | 90% engagement score | |
40% below 30 years of age | ||
~1000 strong alumni | 3 drivers: Growth mindset, Career | |
development, Well being | ||
Source: ChinaHR.com
Unilever China : Consistent, profitable growth
UOM% | 3 Bn |
TO (Euro) 1.5 Bn
F&R
HC
BPC
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019* |
2019*: Q3 YTD TO annualized, and H1 UOM annualized
China for China
Decide in | Design | Move at | Do it the |
for | China | China | |
China | |||
China | Speed | way | |
Unilever China : Growth priorities
Grow core brand | Future fit portfolio | Go digital, deep and | ||
penetration | wide | |||
……
Key enablers
New organization | Fuel for growth | Sustainability | ||
Grow the core penetration : 10 brands, 80% business
Superior product | Mental availability | Physical availability |
100% | No 1. |
Brand power | |
Winning vs. benchmark | |
Skin cleansing | |
600 Cities
c. 1 M total coverage >2M Chefs direct connect
Future fit portfolio : Accelerate premium portfolio
New Brand | New Benefit | New Formats |
For p | Naturals |
Good for you, good for the | Indulgence | New Bath Experience |
planet | ||
Future fit portfolio : Scale skin care business
No. 1 | No. 1 | No. 1 | New | |||||
Body care brand | Facial wash Company | Volume brand | J-Beauty | |||||
in Tmall | in Tmall | in Tmall International | ||||||
Go Digital : eCommerce all models at 25% contribution
Business to | Omni | Business to business |
consumers |
Foods delivery Ali Ling shou tong
Pure play
Home delivery
JD Xin tong lu
Social commerce
Mini program
+30% CAGR
Go Digital : Winning strategy
Portfolio designed for | Content to convert | Perfect execution | ||
channel | ||||
Talent and organization
Go Deep : Lower tier cities
Distributors to cover lower tier cities Focus on priority city clusters
D City | |
▲ Expansion Distributors | ▲ |
D City▲ |
- A City
D City | ▲ |
C City |
- City
▲
11% growth like to like
25% total growth
Business to Business to cover grocery
1M small stores
Big Store | Small Super | Cosmetic | Grocery |
/Mini |
Weight
Action | Core | Expansion | Cosmetic | B2B | |||
Distributor | Distributor | Distributor | |||||
Go Wide : New channels
Health & Beauty | Out of home | ||||
Traditional | Small | 4-5 star | Chains |
big restaurants | restaurants | Hotels | |
Best Supplier | Leading Food Service Team | |
Award 2019 | Pride in 'Chefmanship' | |
Enabled by new organizational model
GROW
POWER
Hair | PW | Fab Sol | Fab | Skin | Life | Food | IC |
Sen | Essential | Solution | |||||
Omni Channel Team | Dedicated Customer Development Teams |
Data and | Marketing | Supply Chain | R&D | Expertise |
Digital Hubs | Services | Partners | ||
RUN
Plan | Execute | Deliver | Collect |
Enabled by new organization : Data and Digital Hub
Dedicated team | Data assets | Digital capability | Foundry |
100+ FTE | Significant scale | AI |
in 1st party data | Machine learning | |
Natural language processing |
40 pilots landed
100+ ideas inspired
700+ start-up referrals
Data and Digital Hub - Faster Innovation
Category trend forecast
by AI
Data and Digital Hub - Precision at mass scale
Well defined | Identify audience segments | Tailored assets based on |
segments | via big data algorithm | sharp consumer insights |
Trend addicts
Love seekers
Ingredient lovers
Data and Digital Hub - Consumer Journey Marketing
Unilever X Ali Eco System : B2B2C pilot | |||
Push: Business to business | Pull: to consumer | ||
Sell in to stores on | Location based precision marketing | Conversion in stores | |
Ali LST platform | to consumer with ads and coupon | with coupon redemption | |
Ali Ling shou tong | Youku video app | Coupon function on Alipay | Tmall CVS |
Enabled by fuel for growth and sustainability
Fuel for growth | Better, Less, No Plastic | |||||
5S | 2019 | |||||
Recyclable | PCR | |||||
80% | 20% | |||||
CHANGE
PROGRAM
Unilever in China for China !
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Unilever plc published this content on 14 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2019 14:54:02 UTC