SHANGHAI, April 7 /PRNewswire-Asia/ -- Paul Polman, Chief Executive Officer of Unilever, arrived in Shanghai recently, kicking off his first visit to China after he took office late last year. He brought the message that Unilever attaches great importance to China market and has enrolled China as one of its top 12 strategic markets.
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The five-day visit exposed Polman to the vitality of China. Especially Shanghai, the starting point of Unilever in China greatly impressed him, "About 85 years ago, Lever Bros. has already landed on Shanghai. We returned to China in 1986 and have been dedicated to growing into a localized sustainable company. China has always been an essential market for Unilever, and Unilever has long-term commitment to our Chinese consumers. We wish to grow with China together."
"Though affected by the global economic turmoil, China, with 1.3 billion people and rapid economic growth, boasts a highly promising future," said Polman. According to him, Unilever, one of the world's leading consumer goods manufacturers, will continue to invest in China, out of a deep understanding of the local market and its confidence in China's future economy.
The global financial meltdown has dampened consumption all over the world. Polman, however, who took the helm of Unilever amid the crisis, has a deeper insight into the recession, "The recession could be an opportunity for fast-moving consumer goods. Consumers postpone buying big-ticket items and that frees up a lot of money to spend on everyday needs. We don't see personal care or food market go down substantially. Recession can't be an excuse for a poor business performance. Rather, the crisis gives us an opportunity to set the bar higher."
Unilever data shows that about half of its sales are from emerging markets, including China. Polman noted that Chinese consumers have higher confidence in the prospects of economy than consumers in many other countries. He also pointed out that Unilever has a broad portfolio of brands in China. With about 20 brands covering food, home and personal care products, the company is equipped to meet various needs of China's large population. Many of its brands have become household names in China, such as Omo, Lux, Clear, Hazeline, Pond's, Lipton, Knorr, Wall's, etc.
Polman is not worried that the recession may affect consumer spending and Unilever sales. He said, "Facing an economic downturn, consumers tend to look for better value but not just the low price. Unilever has always been devoted to bringing consumers high value products via innovation."
Polman predicted the current recession would continue for 18 to 24 months. Unilever will take a series of measures to save cost, strengthen cash flows, and to enhance brand competitiveness. He said at the same time that Unilever will not cut its investment in China. As a foreign corporate pioneer in China, Unilever's investment in China has amounted to 1 billion USD. This year, Unilever Global Research Center Building in Shanghai, which costs more than 100 million USD, will come into service. This will lay a solid foundation for China to become one of Unilever's global research bases and regional management centers.
Born in the Netherlands, Mr. Polman has rich experience in fast moving consumer goods industry. He worked for Procter & Gamble and Nestle before joining Unilever last year. His appointment brought to an end the internal inheritance in Unilever which has lasted for almost 80 years.
