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The way people view cleaning tasks is fundamentally changing. No longer is it just about killing germs and removing stains; increasingly, it’s about boosting wellbeing.
This shift is particularly evident in Europe. In a market where our cleaning and laundry brands have previously underperformed, business is now booming.
We spoke to Eduardo Campanella, our Home Care Business Group President, to find out what’s behind the growth.
In the first half of this year and into Q3, our Home Care business in the region continued to deliver double-digit growth between 12 and 13%, plus we are continuing to grow ahead of the market. This is the highest underlying sales growth in ten years in a market that consistently grew low single-digit. Importantly, the growth was volume-led.
The turnaround was made possible by investment in our Power Brands to develop scalable, multi-year innovations that respond to changing consumer behaviours and needs. That coupled with a transformation of our supply chain.
Unilever’s Growth Action Plan has three priorities: delivering higher-quality growth, stepping up productivity and simplicity, and adopting a strong performance focus. The success of Home Care in Europe is a strong demonstration of this strategy in action.
Persil Wonder Wash is one. We designed it specifically for short cold cycles in response to the growing trend for speed and convenience. It’s early days, but it’s already the fastest-growing innovation in the category. And it’s attracting new consumers to our Dirt Is Good brand, including pre-family households, Gen X and empty nesters.
Another is Domestos Power Foam which we developed in response to insights that Gen Zs and Millennials find cleaning boring, so they look for products that get the job done with less time and effort. The product gained double-digit market share in the UK in just 18 months.
Lastly, there’s our Sun Machine Dishwash Tablets, which also respond to this convenience trend. More than 50% of consumers currently pre-soak,[a] but with these you don’t have to. They also work well on short cycles, which almost 70% of consumers use on a weekly basis.[b]
For many people, cleaning their homes took on new meaning during the pandemic. They’re increasingly seeing it as a way to relax – a new form of self-care. This shift is amplified by the influence of digital platforms and social media, particularly among younger generations.
Take TikTok’s #CleanTok trend. This provides us with new and exciting ways to engage Gen Z. It’s fuelled by ‘cleanfluencers’ and authentic content creators, who provide advice as a form of entertainment. So, for the first time, our products are taking centre stage.
In the past, young people would have learned about cleaning from their parents and grandparents. Now, they hear and share information via social media. 58% of TikTok users say they are more likely to trust brands after learning about them from creators’ feeds.
Fragrance is intrinsically linked to cleaning as a self-care trend and it’s a really important way for us to differentiate our premium products. For example, our new Comfort Botanicals and Elixir ranges have patented technology that delivers ten times more fragrance.
Both ranges are growing value share. Not surprising when you consider that – according to our own insights – 80% of European consumers want a home fragrance that lifts their mood, and 30% would replace their current product with one providing emotional benefits.
We’re investing €150 million in a significant transformation in productivity and efficiency over the next three years.
The majority is going into Port Sunlight, the home of research and development for our Home Care business. Here, we’re optimising the manufacturing set-up for our premium formats – liquids and capsules – and expanding our warehouse capacity to continually improve our logistics. This will enable further savings which we’ll reinvest back into our brands.
In a market that’s sophisticated and diverse, we’re responding to consumer trends and needs with bold, scalable innovations. We’re rewiring the entire supply chain. And we have a refreshed mindset, which is about doing things differently and doing things fast.
For the first time in a decade, Home Care in Europe is growing, rapidly. Our job now is to build on this momentum and look forward to what we can achieve over the next ten years and beyond.
*This article was updated on 31 October 2024 to include Q3 financial results.
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