HUL battles new-age rivals, picky consumers as fortunes flag
Financial Express Mumbai|April 13, 2024
HINDUSTAN UNILEVER (HUL), the largest consumer company in the country, has provided everyday products from detergent to instant coffee to Indians for decades.
ADVAIT PALEPU

Now HUL is seeing its fortunes flag as an increasingly sophisticated consumer class with disposable incomes demands more. Unilever's India unit is battling a slowing rate of growth in revenue and profits while its share price is lagging.

Elite classes are becoming pickier consumers, fueling the success of organic personal-care brands backed by slick social media marketing campaigns. The rise of companies like local upstart Honasa Consumer and the inroads made by global names, including Estee Lauder Companies and Clinique Laboratories, is forcing HUL to spend more on product development and advertising.

The challenges mirror those of other consumer-goods giants, such as Procter & Gamble, L'Oreal and its London-based parent, which in recent years have had to acquire the niche brands taking market share from their in-house businesses.

'Challenger brands'

"Simply put, the large companies like HUL are slow to move and develop strategies compared to the newer brands that are far more agile," said Arvind Singhal, chairman of consulting firm Technopak Advisors.

"The power of large brands is decreasing by the day because there are challenger brands coming up at every price point. They offer better margins to retailers and the local shopkeeperis happy to try them out." HUL declined to comment because it is in an earnings quiet period, a spokesperson said.

The country's personal-care sector is estimated to become a $33 billion market by 2027 from $20 billion in 2022, according to Redseer Management Consulting.

Esta historia es de la edición April 13, 2024 de Financial Express Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición April 13, 2024 de Financial Express Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE FINANCIAL EXPRESS MUMBAIVer todo
Financial Express Mumbai

Murdoch ally helps Ambani build media empire in India

SOHEE KIM PR SANJAI

time-read
3 minutos  |
April 18, 2024
Financial Express Mumbai

Pandya, Dube & Rinku: Can they finish for India at T20 World Cup?

GOING INTO THE 2022 T20 World Cup in Australia Dinesh Karthik was assigned the finisher role and the batting lineup was built accordingly.

time-read
2 minutos  |
April 18, 2024
Financial Express Mumbai

Nestle adds sugar to infant milk and cereal, finds report

A NEW REPORT has revealed that Nestle, the world's largest consumer goods and manufacturer of baby formula, is adding sugar to infant milk and cereal products sold in India, and other Asian, and African countries.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

India-made Daimler's electric mini truck to hit the road soon

INDIA WILL BE host to German trucking giant Daimler's only electric vehicle plant outside of Europe and Japan when it launches a locally-made electric light cargo truck in FY25.

time-read
2 minutos  |
April 18, 2024
Samsung eyes ₹10,000 cr from India TV biz this year
Financial Express Mumbai

Samsung eyes ₹10,000 cr from India TV biz this year

SOUTH KOREAN GIANT Samsung is targeting a turnover of ₹10,000 crores for its television business in India this year, driven by growth in sales of its mid to-premium segment models, said Mohandeep Singh, senior VP, consumer electronics business in India.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

Microsoft AI Copilot speed boost for coding

WHEN SOFTWARE DEVELOPER Nikolai Avteniev got his hands on a preview version of Microsoft's Copilot coding assistant in 2021, he quickly saw the potential.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

US, China debt pose risks for global public finances: IMF

THE WORLD's TWO great economic rivals, China and the US, will drive much of the increase in global public debt over the next five years, with US spending creating trouble for many other countries by keeping interest rates high, officials at the International Monetary Fund said in a report.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

Language models in consumer tech

This move is designed to ensure better user experience & privacy

time-read
2 minutos  |
April 18, 2024
Financial Express Mumbai

'Data centres' energy use doubles every four years'

Data centres are significant energy consumers, using about 2% of the world's power and emitting carbon dioxide equivalent to the airline industry.

time-read
2 minutos  |
April 18, 2024
Financial Express Mumbai

Vi FPO: Foreign players invest big; about ₹5,400 crore raised

GQG, Fidelity buy almost 40% of the anchor investor portion

time-read
1 min  |
April 18, 2024