 "Hindustan Uniliver, HUL")
Hindustan Unilever (HUL), India's largest consumer goods company, is investing in its beauty portfolio to capitalise on growing demand. Rohit Jawa, HUL’s chief executive officer and managing director, spoke about expansion plans during an analyst call after fourth quarter results for Financial Year 2023-24 were released on Wednesday.
HUL has identified six areas for investment to “premiumise” its beauty portfolio: face cleansing, sun care, light moisture, serums, weatherproof body care, and masstige skincare. This includes well-known brands such as Ponds, Lakme, Dove, Vaseline, Love Beauty and Planet, and Simple. Jawa, according to a report in the Financial Express. The company said these investments were aimed at catering to the evolving needs of beauty consumers, especially the younger demographic, by leveraging digital channels, media, and influencer marketing.
Additionally, HUL plans to establish a beauty council comprising opinion leaders from the fashion and beauty industry to solidify its presence in the segment, using platforms like the Lakme Fashion Week.
A report by consultancy firm Redseer projected significant growth in the Indian beauty market, estimating it to reach $30 billion by 2027, driven by increased awareness of grooming needs and innovative solutions offered by emerging players.
HUL's decision to separate its beauty business from personal care reflects its dedication to refining its product offerings and capturing market opportunities.
Despite a decline in underlying sales growth in the personal care segment, the beauty segment witnessed a four per cent growth in the March 2024 quarter, indicating the segment's potential for growth.
"Our focus is to enhance the desirability of products using superior technology, premium packaging solutions, and formats," said Jawa. He outlined plans to invest in expanding the company's footprint of nano factories and supply chain infrastructure for the beauty business. Additionally, HUL aims to strengthen its partnerships with e-commerce and modern trade channels to further consolidate its position in the beauty segment.
