Unilever's CEO Optimistic About India's Growth and Quick Commerce
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Synopsis
Unilever's CEO, Fernando Fernandez, expresses strong optimism about India's growth potential and the rise of quick commerce. He highlights key factors influencing this growth and the strategic acquisition of Minimalist to enhance the beauty segment.
Key Takeaways
- Unilever's CEO shows confidence in India's growth.
- Quick commerce expected to rise to 15% of sales.
- Acquisition of Minimalist to boost beauty segment.
- Social-first marketing strategy to engage consumers.
- Focus on evolving consumer preferences.
New Delhi, March 10 (NationPress) FMCG giant Unilever's newly-appointed CEO, Fernando Fernandez, has displayed immense confidence in India’s growth trajectory and changing consumer behaviors.
In a fireside chat with Barclays' Head of Staples Equity Research, Wareen Ackerman, Fernandez pointed out that India is the company’s second-largest market and a vital component of future growth.
He anticipates that India's economic landscape will experience considerable enhancement in the latter half of 2025.
“I am optimistic that India's economic environment will improve -- particularly, in the second half of the year, where we expect significant changes in India's distribution channels,” Fernandez expressed.
He identified three primary factors fueling this positive outlook: India’s expanding affluent consumer segment, evolving consumption trends, and the swift ascent of quick commerce.
Fernandez predicts that quick commerce, which presently constitutes only 2 percent of Unilever’s sales in India, will rise to 15 percent in the next three years.
He believes this emerging trend will play a pivotal role in transforming India's retail landscape and enhancing Unilever’s market presence.
Unilever’s recent purchase of the Indian beauty brand Minimalist also underscores Fernandez’s strategic objective to grow the company's beauty division in India.
Rather than modifying its current portfolio, he views the acquisition as a means to expedite growth in the beauty and personal care sector.
“The acquisition of Minimalist signifies our approach in India to effectively advance our portfolio,” Fernandez noted.
He emphasized that desire has been a crucial concept during his tenure in the beauty and wellness sector.
“I think desire can be applied across all business groups within the company. Today’s consumer is much more selective and demanding,” he stated.
A significant transformation in Unilever’s strategy under Fernandez is its focus on social-first marketing.
His ambition is to create an extensive influencer network throughout India, ensuring that every zip code has at least one influencer promoting Unilever’s products.
