We will leverage our full potential in our product categories in order to gain market shares, and outperform our competition by actively managing our portfolio, strengthening our top brands, launching powerful innovations, and focusing on customers and consumers.
In 2013, we made significant progress in advancing our leadership position in our relevant markets and categories by further strengthening our top brands. At the same time, we continued to invest in developing and launching innovations, intensified cooperation with business partners, and focused on our customers and consumers.
Strengthening our top brands
To capture the full potential for accelerated growth and increased profitability in our categories, we continued to focus on our top brands, such as Persil, Schwarzkopf or Loctite. At the end of 2013, our top 10 brands generated 57 percent of total sales compared to 44 percent in 2012. We aim to increase this share to around 60 percent by 2016.
In 2013, sales of Henkel Beauty Care’s biggest brand Schwarzkopf reached 2 billion euros for the first time. With a portfolio of superior product brands such as Schauma, Drei Wetter Taft and Brillance, Schwarzkopf stands for quality, expertise and innovation. It is now present in over 50 countries worldwide. Our Schwarzkopf Academies and Studios are recognized centers of excellence, inspiring and educating professional hairdressers around the world.
Our success in highly competitive markets is based on strong innovations that meet the needs of our customers and consumers around the world.
Somat/Pril Gel Caps were one of the most powerful innovations in our Laundry & Home Care business in 2013. They offer convenient handling, exceptional cleaning results and a unique shine – even in short and in low-temperature “energy-saving” dishwashing cycles. The capsules were successfully launched in Italy in July 2013 under the Pril brand and will be introduced under the Somat brand in all relevant markets in Western and Eastern Europe within the first quarter of 2014.
In order to capture the full innovation potential in emerging markets, Henkel opened four R&D centers in emerging markets in 2013: in Dubai (United Arab Emirates), Johannesburg (South Africa), Pune (India) and Seoul (South Korea). We also significantly expanded our R&D center in Moscow, Russia. By 2016, we aim to open or expand seven R&D centers in emerging markets.
Focus on customers
Fully understanding our customers’ needs and cooperating with partners along the value chain are key competitive advantages for Henkel. The cooperation between our Adhesive Technologies business and Nordson Corporation combines Nordson’s expertise in equipment engineering and dispensing technology with our leading adhesives formulating ability and application competence. This will generate innovative solutions, provide significant benefits and deliver greater value to customers in different industry segments using Nordson equipment and Henkel adhesives in combination.
We are leveraging consumer insights with the “shopper studies” conducted by our Laundry & Home Care and Beauty Care businesses. These insights benefit our strong relationships with our customers, major retail companies, as they learn more about their customers’ individual shopping behavior.