Unilever to boost Prestige beauty business through digitization, acquisitions and expansion
14 Dec 2021 --- Unilever says it is powering global growth through its Prestige beauty business which is forecast to be worth at least €3 billion (US$3,385 billion) in the next few years through digital commerce, innovation, acquisitions and expansion.
Digitization is one key area which the British multinational consumer goods company is working on. Unilever says: “We know around 70% of consumers worldwide use social platforms to search and shop for products, and the global social commerce market is expected to reach more than US$3 billion by 2028.”
Innovation is another growth driver for the company, and here we benefit enormously from leveraging the best of Unilever’s R&D capabilities.
The company has an annualized turnover of around €1 billion (US$1.1 billion) this year.The company’s third big bet comes back to purpose. “We know consumers expect more from brands than ever before and that consumer trust builds brand growth. So as our brands grow, we’re committed to growing their positive impact too,” outlines Unilever.
The company has an annualized turnover of around €1 billion (US$1.1 billion) this year. The next goal is to grow its Prestige business to at least €3 billion (US$3.3 billion) in the years ahead.
Evolving beauty business
Unilever Prestige was launched in 2014 when its executive vice president and group CEO Vasiliki Petrou brought premium beauty brands into the company.
Just ten markets worldwide make up 70% of Unilever’s sales in Prestige. So for the company, it’s vital to reach the right markets in the right way. “While our mass-market brands benefit from being widely available, in Prestige, a certain level of scarcity drives desirability,” says Petrou.
“In the past few years, our beauty business has evolved – and a new stable of luxury brands is driving rapid growth.”
“Seven years and nine brands later, Unilever Prestige reported €700 million (US$789 million) in turnover in 2020 and strong double-digit growth in our most recent results for 2021,” she continues. “Our ambition now is to build a business worth at least €3 billion (US$3,385 billion) in the next few years.”
Notably, social media and e-commerce are also huge drivers for Unilever’s Prestige brands, and they’re outpacing the market, with more than 50% of its turnover coming from online sales.
Seventy percent of consumers worldwide use social platforms to search and shop for products.
“Of course, online sales are accelerating for all types of products – but with premium beauty brands, direct-to-consumer sales have been a priority for quite some time,” Petrou concludes.
In October, Unilever reported strong performance in its Q3 results, driven by an e-commerce rise of 38% and a double-digit growth for its Prestige Beauty business, which was boosted by the acquisition of Paula’s Choice earlier this year.
The company also recently launched a Positive Beauty Growth Platform initiative, seeking to partner with scale-ups and start-ups to accelerate innovation and brand growth.
Edited by Elizabeth Green
