The summer months mark the mid-point in the year for major personal care players in Europe. Here, we take a look at three of the big multinationals on their strategic direction so far this year.
Market research firm Euromonitor International has recently released company profiles on each of these industry giants, giving insight into their likely directions moving forward.
Unilever: premium push
Unilever has had a keen eye on the premium segment of late, a savvy direction given recent reports that higher end products are outperforming the wider market in Europe.
“Unilever’s strategy of increasingly focusing on higher-priced premium segments and dynamic categories continues in 2017, with the acquisition of Hourglass and its investment into True Botanicals,” says Euromonitor.
“Unilever is also strengthening its portfolio via organic product developments, such as the TRESemmé Beauty-Full Volume range and Lux Luminique, which also serves the purpose of aligning its brands with growing sophistication in emerging markets.”
Henkel: challenges and opportunities
Henkel has beaten its own record for positive growth lately, but according to Euromonitor, it faces various market challenges up ahead.
“While Henkel recorded another year of positive growth in beauty in 2016, the company faces various challenges including a narrow focus, mainly emerging from hair care, and difficulty penetrating lucrative emerging markets.
“Henkel lacks visibility in projected growth hotspots in its key categories, however the company is moving in the right direction with a string of acquisitions, a sharp focus on innovation to strengthen market-leading positions and an ambitious digitalisation strategy.”
Leading the entire industry, L'Oréal's primary focus of late has been aligning itself closely to digital innovation as a central focus.
“As it faces dynamic niche brands, the company is stepping up acquisition activity and alliances with beauty tech start-ups to renew its portfolio and innovation strategy,” confirms Euromonitor.
“As smart diagnostics, healthy living and experience take hold in the industry, L'Oréal needs to steer its future course to these consumer megatrends. Mass beauty also requires a focus on reinvention and premiumisation as quality is no longer confined to premium labels.”