HUL records 19 brands above Rs 1000 cr; Surf Excel to cross Rs 10,000 crore in turnover by FY25

HUL's digital media contribution has tripled in the last four years to 40% of its total ad spends.

By  Storyboard18Nov 29, 2024 4:15 PM
HUL records 19 brands above Rs 1000 cr; Surf Excel to cross Rs 10,000 crore in turnover by FY25
Looking ahead, HUL CEO Rohit Jawa’s vision for the next five years is clear: HUL will prioritize market growth, with the aim of expanding its share in India’s dynamic consumer goods sector.

In 2022, Hindustan Unilever's flagship detergent brand, Surf Excel, achieved a remarkable milestone, surpassing $1 billion in sales and becoming the sole non-food brand in India's fast-moving consumer goods (FMCG) sector to attain "unicorn" status. The company’s ambitious projections, outlined during its capital markets day presentation recently, suggest that Surf Excel is on track to surpass Rs 10,000 crore in revenue by FY25. HUL also recorded 19 brands above Rs 1000 crore.

HUL's digital media contribution has tripled in the last four years to 40% of its total ad spends, as consumers use of digital devices and platforms increases.

In a showcase of social-first demand generation in action, the presentation spotlighted a bespoke media plan for a premium brand where share for television in advertising is 39%, digital video is 29%, social is up to 15% and OTT platforms at 17%. A departure from the 'one-size-fits-all' approach of 60% TV, digital video at 20%, social at 12%, and OTT at 8%.

The maker of brands like Dove, Ponds, Vim and more, has built a proprietary and bespoke tool to build effective reach and is now using category-specific data to customise for different consumer groups. It has also reduced its digital deployment cycle from five days to five hours.

The FMCG juggernaut highlighted its channels of the future, with category captaincy in Modern Trade strategies like building brands in store and a platform-centric approach in e-Commerce including building categories with Q-commerce.

HUL identified six long term market opportunities - Premium Face, Hair, Body Wash, Homecare, Condiments and Well being. It is expecting 2x to 4x opportunity potential across categories and a delta of over 80% from future core and market makers. The firm further suggested that there is headroom for premiumisation in the beauty & wellness and food & refreshment segments. It also said that its share in the Hair Care business is the highest in the last decade.

Back to the flagship in homecare, Surf Excel's success lies not only in its market performance but also in its ability to redefine a traditionally utilitarian product category. Surf Excel was a pioneer in transforming the narrative around detergents, famously positioning dirt not as the enemy, but as a symbol of positive, meaningful activity.

Building on the foundation of past campaigns, Surf Excel has updated its message to resonate with modern sensibilities. Today, the brand encourages consumers to see dirt as a stepping stone in raising resilient, confident, and independent children—individuals who are "life-ready." This evolved message views the messiness of life not as a problem but as an opportunity for growth.

At the recently held CNBC-TV18 Global Leadership Summit (GLS) 2024, Hindustan Unilever’s CEO, Rohit Jawa, shared his vision for navigating India’s rapidly evolving consumer goods market. Jawa underscored the emergence of a vast, aspirational market, one shaped by the widespread availability of information and inspiration through mobile devices. This new consumer landscape, he explained, is a natural extension of broader trends seen in other developing economies, driven by urbanisation, digitisation, and a robust tech ecosystem that promotes financial inclusion and expands digital access.

Jawa’s strategic focus for HUL centers on long-term growth through continuous improvements in brand quality and consumer engagement. He reiterated the importance of consistent innovation and product enhancement, stressing the need for brands to evolve and become "the most unmissable" options in a competitive marketplace.

One of the key elements of Jawa’s strategy is the role of strategic pricing in unlocking new market opportunities. “It has to be at a price point where markets can be opened up,” he said, recognizing that HUL competes against a diverse set of players, from local and regional competitors to global giants and direct-to-consumer brands. Achieving the right balance of price and value is essential to ensuring HUL’s brands remain accessible to a broad range of consumers.

Looking ahead, Jawa’s vision for the next five years is clear: HUL will prioritize market growth, with the aim of expanding its share in India’s dynamic consumer goods sector. "The way to gain share in a market as exciting as this in the medium term is to grow the market," he said, underscoring the company’s commitment to long-term, sustainable growth through inclusive strategies that foster market expansion and development.

First Published on Nov 29, 2024 10:11 AM

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