HUL plans to introduce global premium brands under beauty & wellbeing segment

Bengaluru, 3 December: FMCG giant, Hindustan Unilever (HUL) is planning to introduce several global premium brands in India under its beauty and wellbeing (B&W) segment.

According to a report by brokerage firm- Nuvama Institutional Equities, these premium products will be launched in next two years.

“HUL plans to introduce global premium brands within the next one–two years. The average usage of products has increased from 1.5 to five products over a decade,” the brokerage firm said in its report. “The company has six high-growth segments such as face cleansing, light moisturiser, serums, sun care, deseasonalise body, and masstige,” it added.

The brokerage firm prepared the report after attending HUL’s Capital Markets’ Day event.

According to the company, going forward, the company is likely to see low-single digit price growth, maintaining EBITDA (operating margin) at current levels.

HUL is the number one player in the B&W segment in India with every three out of five households preferring HUL products, the report noted. It has a combined reach of 30 crore Indian households annually.

“India is in a different stage and age compared with the US beauty markets. Penetration levels remain low in 10/20s for many sub-categories. India is still an immature beauty market and has ample headroom for growth,” the management of HUL has said.

HUL is leveraging AI and beauty tech to enhance the consumer experience. The FMCG firm is planning to launch AI hair stylist assistant in Tresemme, which can be used by scanning the QR code.

In beauty products, small sachets such as Rs 1/5/10 are playing a massive role in driving penetration as nine out of ten households use Clinic Plus due to accessibility and affordability, the management has noted.