Why did Unilever ask you to kickstart the Unilever Prestige division, and what was the rationale behind its key acquisitions?
In 2014, Unilever embarked on a journey to tap into the fast-growing premium market, marking the genesis of the Unilever Prestige division. The premium market promised long-term growth, presenting a white space ripe for development and innovation. Unilever, a purpose-led company, identified a unique gap for purpose-led and founder-led brands in the luxury sector, underscoring a movement towards authenticity. Brands not only focused on growth and profitability but were also committed to positive societal and environmental impacts. Unilever Prestige was fueled by the vision of marrying profitable growth with a dedication to the planet and society.
The acquisitions, beginning with four skin care companies in 2015, were guided by this ethos. Each brand under the Unilever Prestige umbrella is ingrained with an authentic story, committed to not just profitability but also to making a positive impact. This dual focus stems from a belief in the power of brands that are genuine, resonating with consumers on a deeper level and fulfilling a need for authenticity and purpose in the luxury space.
How do you ensure the founders of these brands remain engaged post-acquisition, and could you elaborate on the business model that supports this?
Maintaining the authenticity of acquired brands is central to our business model. The founders, integral to the brand’s identity and vision, are viewed as invaluable assets. Each founder embodies the soul and DNA of the brand; hence, their continued involvement is not just encouraged but is essential. Our approach is tailored, recognizing the uniqueness of each founder, their strengths, and their desired level of engagement. We're committed to global acceleration and innovation while preserving and nurturing the founder's vision.
The business model places the brand at its core, with the founder playing a pivotal role in innovation. Flexibility is key; there is no one-size-fits-all approach. We align with the founders' strengths and aspirations, focusing on realizing not just the brand’s potential but also the founders' dreams. Consumer-centricity underpins our strategy, ensuring that every decision made is in the best interest of the consumer.
What are the key trends in the beauty and personal care industry that excite you, especially post-COVID and in the context of increased focus on product efficacy and the emergence of longevity supplements?
Post-COVID, there’s a noticeable shift towards clinical brands and doctor-led products that promise tangible results. Unilever Prestige, with its portfolio of clinical brands, is well-positioned to meet this demand. The “longevity economy” is another trend shaping the industry. It transcends sectors, influencing everything from drug discovery to digital health. The intersection of longevity and AI, termed “generative health,” is poised to revolutionize personalized health experiences.
This trend underscores the development of interfaces that offer personalized advice and prompt positive behavior, effectively combining AI with health and wellness. It envisions a future where health history is seamlessly integrated into personalized regimes, aided by AI, marking a shift towards a more tailored, individual-centric approach to health and wellness.
Given the advent of emerging technologies like generative AI, what advice would you give to founders in the beauty industry, and what emerging technologies should they be aware of?
Founders could consider enriching the ‘wellspan,’ emphasizing quality of life and wellness. The mind-body connection is gaining prominence, with technology playing a pivotal role in bridging this gap. Technology enhances traditional approaches to wellness, enabling a holistic view of health that incorporates mental well-being. Founders should explore this integration, ensuring their products address both physical and mental aspects of health.
Neurotech applications are emerging as significant influencers in the beauty and personal care industry. Modern lifestyles are often characterized by stress and anxiety, and neurotech offers solutions to counterbalance these challenges. It aims to reintroduce joy into people’s lives, promoting longer, healthier, and more beautiful lives. Founders should be attuned to these innovations, leveraging them to create products that address the multifaceted needs of the contemporary consumer.
What potential developments do you foresee in the neurotech area, especially in the context of emotional well-being?
In the evolving landscape of neurotech wellness, the intersection of physical and emotional aesthetics is becoming increasingly significant. The industry is transitioning from a focus solely on physical aesthetics to an integrated approach that includes emotional well-being. Scientific advancements have enabled the triggering of positive emotional states through environmental and sensory responses, leveraging the skin’s hormonal system. The concept of inducing hormones like oxytocin to elicit beneficial effects on the skin, body, and mind is gaining traction. This integration of physical, emotional, and mental wellness represents the next frontier in the neurotech wellness domain.
The discussion around hormones and emotional well-being is relatively new but crucial. As the industry begins to explore topics like menopause and the broader implications of hormonal interactions on emotional states, a holistic ecosystem emerges. In this ecosystem, the convergence of physical, emotional, and mental well-being is central, promising comprehensive wellness solutions that cater to the multifaceted needs of individuals.
How do you leverage the synergies among the companies under Unilever Prestige?
Unilever Prestige is grounded in the philosophy of placing the brand at the center, ensuring that the DNA and heritage of each brand remain uncompromised. We identify key future capabilities and “big waves” that are essential for all brands, allowing them to adapt these insights to their unique strategies and equities.
The diversity within our portfolio enables real-time intelligence sharing across various channels, providing insights into social media, e-commerce, and R&D trends. Each brand, from Paula’s Choice, a DTC tech powerhouse, to Dermalogica, a leader in professional skincare, contributes to this dynamic ecosystem.
The intersection of social media, e-commerce, and entertainment is a focal point. By nurturing a diverse portfolio that operates in different channels and ecosystems, we ensure a continuous flow of intelligence about what works and what doesn’t. This approach fosters innovation and adaptability, enabling each brand to carve out its niche while benefiting from the collective intelligence of the group. In this environment, continuous self-disruption and reinvention are encouraged to stay ahead of industry trends and consumer expectations.
What does the future hold for Unilever Prestige, and how do you plan to achieve your ambitious turnover targets by 2028?
Unilever Prestige is at the threshold of immense potential. Though we house renowned brands like Dermalogica, Paula’s Choice, and Murad, we believe the journey of enhancing awareness and trial is just beginning. Our brands boast product superiority and aesthetics that instantly convert consumers upon discovery. Our focus remains on amplifying awareness, ensuring consistency in communicating the benefits of our offerings, and adapting to the ever-evolving media landscape.
Global expansion and innovation underscore our strategy. While we have established a significant presence in the U.S. and the U.K., the recent launch in China opens doors to a market teeming with potential. We are committed to doing things differently, to writing new rules and codes in an industry undergoing rapid transformation. Our focus is not just on adapting to change but spearheading it, ensuring that Unilever Prestige remains at the forefront of innovation and sustainable growth.
For high-growth startups aspiring to be noticed by Unilever Prestige, what attributes and strategies should they focus on?
Startups aiming to capture our attention should be grounded in authenticity and passion. We value founders who are genuinely committed to solving problems and making a significant impact in the industry. Avoiding shortcuts and opportunistic decisions, and instead focusing on building authentic, sustainable brands is crucial. A brand’s differentiation, global relevance, and long-term sustainability are pivotal. We are drawn to brands with a clear, enduring vision and a purpose that extends beyond profitability.
A brand’s legacy is integral. We seek founders who contemplate the impact and heritage they will leave for the next generation. In a world where the playbook is continuously rewritten, we are attracted to brands that are not just adaptable but are also contributors to this evolving narrative. In essence, brands that are imbued with a sense of purpose, authenticity, and a long-term vision align with the ethos of Unilever Prestige.
