Unilever: Shaping Everyday Global Consumer Habits

Unilever has fundamentally redefined how it builds brands. Moving beyond legacy marketing approaches, it now anchors product development and engagement strategy around "SASSY" brand attributes: Science, Aesthetics, Sensorials, Said by others, and Young-spirited. This framework has transformed heritage brands into culturally relevant, social-first growth engines. For instance, Vaseline was relaunched by surfacing real user hacks, co-creating with influencers, and validating efficacy through science, driving over 10% underlying volume growth (UVG). Dove, meanwhile, has leveraged TikTok collaborations and co-branded activations like Crumbl Cookies to deliver outsized engagement and volume.

The Desire at Scale model is not just creative; it is highly systematic, underpinned by four "V" principles (Variety, Virality, Velocity, Validity), allowing Unilever to codify success and replicate it across regions, demographics, and channels. As media fragments and traditional advertising wanes, this shift gives Unilever a repeatable engine for relevance, scale, and growth.

Unilever’s emerging market exposure is unrivalled, 56% of group turnover, with deeply entrenched positions in India, LATAM, Africa, and Southeast Asia. In India, the company holds 2.5x to 4.5x market share vs. its nearest competitor in core categories like skincare, haircare, and dishwash. But what makes this footprint so powerful now is the company's shift toward premiumisation. Through acquisitions like Minimalist (skincare) and Oziva (VMS), Unilever is capturing affluent, younger consumers in urban India.

At the same time, its B2B platform (Shikhar) is digitising 1.4 million retailers, allowing targeted distribution, direct reach, and dynamic pricing. This tech-led infrastructure modernises Unilever’s mass-market engine, supporting higher-margin SKUs without losing volume share. As India and other EMs experience secular GDP growth and demographic tailwinds, Unilever is structurally set up to capture value across both mass and premium segments, reinforcing volume growth while expanding margin.

Historically a margin anchor, the US is now Unilever's premium growth laboratory. Since 2019, the company has reshaped its portfolio in North America through brand exits (e.g., Dollar Shave Club, Suave) and bolt-on acquisitions (e.g., Liquid IV, Nutrafol, Paula’s Choice, Tatcha). As a result, 76% of US sales now come from Beauty & Wellbeing and Personal Care, compared to just 59% in 2019. This pivot has been supported by a clear go-to-market strategy: digital-first launches, high-impact influencer collaboration, and perfect store retail execution both online and offline.

Unilever now ranks #1 in Personal Care and Foods among US retailers, and overall #2, per a survey of 130 top retailers. More importantly, the US has transitioned from an execution market to an innovation exporter, launching new brands and marketing blueprints that are being replicated globally. With 4+% UVG for four straight quarters, the US is not only a high-growth node in Unilever’s portfolio, but a strategic nucleus for global brand-building and premiumisation.

• Ice Cream Demerger Completion: Unilever’s planned spin-off of its €8.3bn Ice Cream unit, expected to be completed in Q4 2025, will immediately lift gross margins and operating leverage. It also streamlines operations by removing a seasonal, capital-intensive business, freeing up focus and capital for reinvestment behind core Power Brands in Personal Care, Beauty & Wellbeing, and Foods. Management anticipates enhanced dividend capacity and improved investor clarity post-separation.
  
  

• Q4 Acceleration in China & Indonesia: China’s reset in distribution, along with channel strategy revisions in live commerce and digital shelf presence, positions the market for stronger exit run-rates. In Indonesia, recent improvements in price-to-value innovation and distribution are starting to unlock recovery. Q4 is expected to show sequential improvements as new marketing campaigns and innovation cycles come to market in both countries.

• India Premium Portfolio Expansion: Unilever’s India strategy is shifting from mass-market dominance to premium category leadership, especially in beauty and wellness. Acquisitions like Oziva and Minimalist are being scaled through Unilever’s 9 million-store reach and digital capabilities. Over the next 2–3 years, these brands are expected to contribute disproportionately to growth, as Indian consumers trade up and adopt clean-label, functional products. This transition also improves margins while deepening brand equity.
  
  

• Dove, Vaseline, Hellmann’s Globalisation: Unilever’s repeatable brand-building model is enabling the expansion of hero brands across new markets. Dove’s social-first campaigns, Vaseline’s hack-led repositioning, and Hellmann’s culinary content model are rolling out across LATAM, Africa, and Southeast Asia. These brands benefit from proven frameworks, influencer ecosystems, and clear playbooks, making the international scaling capital efficient and more predictable.

• Gross Margin Expansion Engine: Management is targeting a step-change in gross margin performance through a combination of four structural levers: mix improvement, procurement optimisation, SKU rationalisation, and Perfect Store execution. This approach supports a long-term goal of sustaining underlying operating margins above 19.5%. With the exit of Ice Cream and reinvestment in higher-margin categories, Unilever expects a structurally stronger financial profile.
  
  

• US/India to 45% of Revenue: Over the long term, Unilever aims to reweight its geographic footprint toward the US and India, two structurally advantaged, high-growth, brand-driven markets. The US is increasingly a global brand export hub and India offers unmatched volume leverage. By FY2028, these two markets could collectively represent 45% of group revenue, enhancing growth visibility, brand scalability, and portfolio resilience.

LATAM remains one of the most volatile parts of Unilever’s portfolio, plagued by macroeconomic instability and FX volatility. In Brazil, pricing missteps in laundry and shifts in deodorant formats have impacted growth. Indonesia remains a challenging market for premium SKUs due to affordability gaps, while China’s fast-evolving digital commerce ecosystem has required repeated resets. These geographies demand rapid local execution and pricing agility, making Unilever’s performance dependent on country-level excellence.

Unilever’s influencer-led marketing model, with over 12,000 influencers in India and 17,000 in the US, creates reach and authenticity but adds governance complexity. Without strict controls, there’s potential for inconsistency, regulatory breach, or backlash. Global ad regulators are increasing scrutiny on influencer disclosures, making compliance more critical. While Unilever has invested in vetting systems, managing scale with integrity will remain a reputational risk factor.

Unilever’s margin expansion hinges on consumer willingness to pay more. But economic stress or inflationary periods could reduce appetite for premium SKUs. In value-sensitive regions or categories (e.g., Home Care), price elasticity may erode mix benefits. Competitive pricing or innovation from rivals could also undercut premium strategies. Sustained growth depends on maintaining perceived differentiation and value, not just higher prices.