We should not be complacent about India; prospects in India, particularly behind digitization, are phenomenal: Unilever CEO Hein Schumacher
Unilever's chief executive officer Hein Schumacher said the company should not be complacent about its market share and indicated its historical strong position may weaken with increasing competition.
«We should not be complacent about it (India). Yes, we have great positions, but with some slowdown in China, I do see international competitors flocking into India and putting a greater amount of resources behind it,» said Schumacher at a Barclays Fireside conference.
“And we are seeing increasingly strong local competition.”
India accounts for more than 11% of Unilever's global sales and is its second biggest market after the US in terms of revenue. Hindustan Unilever, the maker of Rin detergent, Dove shampoo and Lux soap is also the market leader in most segments it operates in India, with nearly 80% of its portfolio either gaining or retaining shares.
«Market shares and the enormous business winning percentages that we had, above 80% might not be there forever,» said Schumacher, who took up the role in July.
“But with the undercurrent of us being very well positioned, and the Indian economy doing well, I think the prospects in India, particularly behind digitization, are phenomenal.”
Last year, HUL said it saw its highest market share gains in more than a decade. It is the leader in soaps, shampoos, detergents and skin care products with 35-45% share, and is also the largest tea and malted food drinks maker in the country.
Within oral care and coffee categories, HUL has the second biggest share.
«We look at market share through business winning, we look at it turnover weighted, but we also look at it market weighted,» said Schumacher. “And currently, particularly the last six to nine months on a market weighted
