Unilever’s CEO, Hein Schumacher, recently spoke about the company’s position in India and the potential impact of digitization on its growth. He emphasised the need for Unilever to remain vigilant and not become complacent in the face of increasing competition.
India holds significant importance for Unilever, accounting for over 11% of its global sales and being its second-largest market after the US in terms of revenue. Hindustan Unilever, the company’s subsidiary in India, is the market leader in various segments, with nearly 80% of its portfolio either gaining or retaining shares. However, Schumacher cautioned that the company’s historical strong position may weaken due to increasing competition from international and local players.
Despite the challenges, Schumacher expressed optimism about India’s prospects, particularly in the context of digitization. He believes that the undercurrent of Unilever’s strong positioning, coupled with the Indian economy’s growth, presents phenomenal opportunities for the company. Schumacher highlighted that India will be an important driver of growth for the next ten years and emphasised the need to tap into the potential offered by digitization. Schumacher acknowledged the transformative power of digitization and its potential to reshape the consumer landscape in India. He said that Unilever needs to leverage digitization to stay ahead of the competition and capitalise on emerging trends. The increasing adoption of digital technologies in India presents opportunities for Unilever to connect with consumers, enhance distribution channels, and drive innovation in product offerings.
While acknowledging the positive market share gains Unilever has experienced in India, Schumacher cautioned that maintaining such high percentages might not be sustainable in the long term. He highlighted the influx of international competitors into India, drawn by the country’s growth potential and increasing resources being allocated to the market. Additionally, strong local competition poses a challenge to Unilever’s market position. To stay competitive, Unilever needs to continuously adapt to changing market dynamics and consumer preferences.
RTM Watch’s Take
Unilever’s CEO, Hein Schumacher, recognizes the immense potential of India’s market and the role digitization will play in shaping its future. While Unilever has enjoyed a strong position in India, the company faces challenges from both international and local competitors. To maintain its market share and drive growth, Unilever must embrace digitization, leverage emerging trends, and continue to innovate in its product offerings. By staying vigilant and adaptable, Unilever can navigate the evolving Indian market and capitalise on the phenomenal prospects it presents.
