Unilever is investing over €150 million to revamp its European homecare division’s supply chain, aiming to rectify years of underperformance and target younger consumers with new product offerings.
Unilever, the multinational consumer goods company, is investing more than €150 million to revamp the supply chain of its European homecare division. This move is aimed at addressing years of underperformance in this sector. The company is also shifting its focus towards younger consumers with the launch of new products.
The planned enhancements to Unilever’s homecare operations in Europe encompass the construction of new factories, the addition of warehouses, and the introduction of new production lines to existing facilities. The project, which commenced in early 2023, is expected to be completed by 2026. The homecare division is renowned in Europe for its detergent brand Omo and Comfort fabric softener.
Workforce Reduction and Increased Marketing Spend
This supply chain news follows an announcement made a few months ago that Unilever intends to eliminate a third of all office jobs in Europe by the end of 2025. This decision is part of a strategy to reignite growth. The European homecare division also plans to boost its spending on marketing and research & development by 40%, although the exact figure was not disclosed.
A New Strategy for Growth
“We are completely redesigning our supply chain in Europe,” Eduardo Campanella, head of Unilever’s global homecare business, told Reuters. He believes these changes will enable Unilever to invest in superior products, in-store promotions, and a new marketing strategy. “We did not invest well in Europe because we were not aware of the developments,” Campanella admitted.
However, the new strategy implemented last year has helped the group “adapt to some extent,” according to the Unilever executive. The homecare business worldwide currently shows an underlying sales growth of 3.3% in the first half of this year. Campanella revealed that the European division achieved almost 13% growth in that period, with about two-thirds of it due to volume growth. According to Euromonitor International, this indicates that Unilever is growing faster than the rest of the market.
