Annual Report 2013

Beauty Care

Top brands beauty care

45 %
innovation rate.

Business activity and strategy

The Beauty Care business unit is active in the Branded Consumer Goods business with Hair Cosmetics, Body Care, Skin Care and Oral Care, as well as the professional Hair Salon business.

In the Branded Consumer Goods business, we want to continue expanding our innovation leadership in the mature markets in order to further grow our share there. To this end, we pursue a consistent, pro-active innovation strategy accompanied by strict cost management to allow us to step up our market investments and increase profitability. We are driving business development in our emerging markets by expanding our portfolio. In the Hair Salon business, we are continuing our globalization strategy, with particular focus on stimulating our emerging markets.

Organic growth is at the center of our growth strategy. We drive this strategy by focusing on our top brands, ensuring the rapid international launch of innovations with above-average profitability, and by selectively pursuing regional expansion. Further key success factors include strong support for our top brands through focused media and promotional activities. We regularly analyze our businesses and brands as part of our pro-active portfolio management approach.

In our Branded Consumer Goods business, our focus is on the international expansion of our core businesses of Hair Cosmetics, Body Care, Oral Care and Skin Care. Our growth strategy is aligned to continuously strengthening our top brands. Based on the specific steps we have taken, we were able to further expand our top 10 brands. In 2013, they grew at a faster rate than the overall portfolio, and once again accounted for more than 90 percent of sales. In addition to strengthening our top brands, we focus particularly on the growth potential available in our key accounts. We develop our Hair Salon business through product innovations and efficient sales and distribution structures. At the same time, we continue to take advantage of new regional opportunities.

Through our concerted innovation strategy and consistent strengthening of our top brands, we want to continue generating dynamic, profitable growth. Again this year, we set new standards in the market with our innovation rate1 of 45 percent. And we are developing additional growth potential through the expansion of strategic partnerships with our customers.

 

 

1

Percentage share of sales generated with new products launched onto the market within the last three years.