Recently, Unilever announced that it plans to acquire SaraLee's global body care business and European detergent business for 65.438+27.5 million euros (about 65.438+27 million yuan). If successful, it will be Unilever's biggest transaction since 2000 and its first acquisition since its new CEO Paul Paalmann took office.
This makes Unilever and its main competitor Procter & Gamble (P & amp； G) More consistent strategy: In recent years, P&G is gradually withdrawing from the food market and turning to health and care products with higher profit margins.
Buy while cutting meat.
Although there is not much business in China, Sally is well-known in Europe, and her body care business and European detergent business are more profitable. Sally is "attractive" to Unilever, which urgently needs to change its downward trend in the competition with Procter & Gamble.
Paalmann revealed that in 20 10, Unilever may spend 2.5 billion euros on mergers and acquisitions and increase its sales by 5 billion euros.
This is an interesting contrast with Unilever's efforts to avoid large-scale mergers and acquisitions for many years. Before Paalmann took office, Unilever spent several years divesting its $24 billion acquisition of Bestfoods (mainly engaged in food business), and the former CEO of Paalmann personally sold the 19 sub-brand.
As the first foreign CEO introduced by Unilever, Paalmann obviously holds different views. He said: If a company only has its own main brand, it will lose the battle of supermarket shelves.
In order to surpass our competitors, we must find someone who knows P&G best. It is worth mentioning that Paalmann, as an "airborne passenger", worked in P&G for 26 years before, and participated in many important mergers and acquisitions of P&G, including adding Pan Ting to P&G's product line and P&G's acquisition of Gillette. , adding a male product line to P&G's numerous female products.
"From 2000 to now, Unilever's nine years of silence are precisely the nine years that P&G surpassed." Li Guijun, a senior research expert in domestic FMCG industry, believes that P&G's product strategy and brand strategy are indispensable. "P&G's strategy is to focus on the most proficient and industry-leading core business, focusing on the development of strong growth. Household products and beauty makeup business. "
Under the guidance of this concept, P&G's five global business categories-baby care products, washing products, female care products, shampoo and hair care products and skin care products-now account for more than half of the company's sales.
We don't know to what extent Paalmann will develop from P&G's previous work experience. But at least it seems that Unilever and Procter & Gamble are more and more alike.
"The field of body care has become the profit growth point that these consumer goods companies are most concerned about." Li Guijun judged that the future competition between Unilever and Procter & Gamble is likely to focus on beauty and cosmetics, especially shampoo.
Similar path
Li Guijun has long been concerned about the brand and product line adjustment and development strategy of Unilever and Procter & Gamble. In his view, the two families have gone through similar paths.
At its peak, Unilever's products covered 4 industries, 13 categories and nearly 2,000 brands, ranging from personal care products, cosmetics, food, ice cream and butter to plantations. "Unilever will not let go of anything slightly related to its main business, as long as there are suitable M&A opportunities."
Such a large plate not only brings redundancy and management difficulties, but more importantly, among more than 2,000 brands, only a handful are truly profitable. More and more brands are marginalized and their contribution to the company's performance is getting weaker and weaker.
Procter & gamble also encountered a similar dilemma. Faced with difficulties, Unilever and Procter & Gamble adopted strikingly similar solutions.
A few years ago, P&G sold its "Tempo" facial tissue business and brand to SCA, a global consumer goods and paper company. It also decisively withdrew from the food industry with meager profits and fierce competition. In 2008, Procter & Gamble announced that P&G folger Coffee Business Department would be merged into American food company Santa Meijia through pure stock transaction worth about 654.38+03 billion dollars.
"If we can't reach at least the bottom line of sales growth within the target range, achieve single-digit or more operating profit growth or guarantee the total return of shareholders, it may be sold by us." Lei Fuli, the current CEO of Procter & Gamble, said.
Unilever also spent several years divesting the assets of Bestfoods, which it acquired for $24 billion, and began to gradually narrow its business scope and withdraw from some non-main business areas.
High-profit areas also have the same goal.
P&G and Unilever "cut the meat" while pocketing the business they want.
In 2005, Procter & Gamble acquired Gillette for $57 billion, which increased Procter & Gamble's products to 265,438+0 brands with sales exceeding $65,438 billion, and also introduced Procter & Gamble into new production fields.
Lafley said: P&G officially withdrew from some business areas and focused on these core businesses-household necessities and beauty products.
At present, 90% of P&G brands focus on shampoo, beauty, household cleaning and child care.
According to Moody's, an international rating agency, P&G occupies 26%, 33%, 35% and 72% of the global market share in hair care, lotion products, baby care and shaving products respectively.
Unilever also began to look for new profit growth points. JamesAllison, director of investor relations, said: "The bad economic environment has affected sales, especially in some markets, where the food range has declined rapidly, but personal care and household cleaning have been limited."
Li Guijun believes that the healthiest business of Unilever and Procter & Gamble is in the global market, which is driven by the close partnership between brands, innovation and retailers, among which home products and beauty products are the most typical; The weakest enterprises are in capital-intensive industries or areas where commercialization has begun, such as food and beverage.