'Make our best brand travel fast': Unilever's new CEO outlines vision for brand building and market innovation

On Thursday, Fernando Fernandez, Unilever’s newly appointed chief executive officer, joined Warren Ackerman, Head of Staples Equity Research at Barclays, for a wide-ranging discussion on the company’s future.

Fernandez laid out a bold vision for the company, highlighting brand building, strategic marketing, and an innovative approach to commerce that targets the evolving desires of consumers, particularly in premium and luxury segments.

Fernandez emphasized the importance of transforming Unilever into a "world-class company in terms of brand creation and in market execution." He acknowledged the solid foundation laid by his predecessor but asserted that his track record is a better fit for leading Unilever through the next phase of transformation.

On Brand Building and Strategic Marketing

Central to Fernandez's strategy is the ambition to build a "marketing and sales machine" within Unilever, with a decisive pivot towards "premiumization". "I am really committed to big serious revolution in our superior functionality, aesthetics, sensorials of our brands," he explained.

This shift aims to create what Fernandez describes as "desire at scale," a concept he has championed from his tenure in the beauty industry.

The CEO also spoke leveraging influencers and social-first advertising to enhance brand equity and consumer engagement. "Creating marketing activity systems in which others can speak for your brand is very, very important," Fernandez noted.

He plans to employ influencers extensively, aiming to have a presence that resonates deeply with local markets across the globe.

His approach includes a significant increase in digital content creation and influencer partnerships. "There are 19,000 zip codes in India. There are 5,764 municipalities in Brazil. I want one influencer in each of them," he emphasized.

This strategy is part of a broader move to increase brand and marketing investments, which have risen from 13% to over 15% of sales in recent years.

Quick Commerce and Luxury Markets

Fernandez also addressed the rise of quick commerce, particularly in emerging markets like India, where he foresees this channel expanding significantly. "We expect quick commerce to be 10-15% [of sales] in the next three, four years," he predicted.

This approach is tailored to meet the demands of discerning luxury consumers who value convenience and exclusivity.

Moreover, Fernandez sees significant opportunities in emerging markets such as India and the US, which he identifies as future geographical anchors for Unilever. "In the long run, as I mentioned, make US and India a key, two key anchors of our portfolio. Make our brands, make our best brand travel fast," he explained.

He stressed the importance of adapting to rapid changes in consumer preferences and channel dynamics, especially in markets like China and Indonesia.

Future Vision

Fernandez's vision for Unilever is one of agility, innovation, and premiumisation. By focusing on creating desire at scale and leveraging digital and influencer marketing, he aims to elevate Unilever's brand portfolio and capture the hearts of luxury consumers worldwide.