Home Consumer After 100 years in China, how does Unilever see the market today?

After 100 years in China, how does Unilever see the market today?

In 1986, Unilever was among the first batch of multinational companies to enter China after the reform and opening up – here's what it did next

by Robynne Tindall
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To mark the 70th anniversary of the China-Britain Business Council, FOCUS speaks to companies that have experienced outstanding success in the Chinese market over the last seven decades

In the second instalment of this new series, FOCUS talks to Jasmine Dang, Unilever’s North Asia Head of Communication and Corporate Affairs.

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How and when did Unilever enter the China market and what major successes and growth have you had during this time?

It has been over one hundred years since Unilever’s first entry into the China market. Over the past century, Unilever has grown alongside the Chinese people, providing products and services to Chinese consumers. We have witnessed and contributed to the development of China’s consumer goods industry.

In 1923, Sir Lever, the founder of Unilever, journeyed across the seas to Shanghai to establish the largest soap factory in the Far East, introducing new hygiene products to Chinese consumers.

Fast forward to 1986, Unilever was among the first batch of multinational companies to enter China after the reform and opening up, bringing advanced industrial technologies, an extensive range of products, and a commitment to quality, which significantly drove the growth of China’s consumer goods sector.

Today, China has become one of the top three key growth markets for Unilever globally. Our cumulative investment in the country exceeds $3 billion, with the establishment of our North Asia headquarters and a state-of-the-art global R&D centre in Shanghai. We have eight production bases across the country and operate 40 prestigious brands that meet the daily needs of 80% of urban households in China.

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What major projects has Unilever been working on recently, and what is the company excited about coming up in the near future?

As the advantages of China’s supply chain continue to emerge, Unilever has been gradually expanding and upgrading its supply chains in China, building a comprehensive network across the country.

Among these initiatives, as one of the largest investment projects in China in recent years, Unilever has invested RMB 1.6 billion to build a multiple-category production base in Guangzhou. The BW & PC factory officially started mass production at the end of October 2023 as the initial phase of the project.

It will follow international digital manufacturing and globalisation 4.0 standards, promote intelligent digital production, build an end-to-end intelligent supply chain value chain, launch a world-class ‘Lighthouse’ benchmarking project, and is in line with the sustainable goals of ‘dual carbon goals’, to contribute to the transformation and upgrading of the Chinese manufacturing industry.

When fully completed, along with other manufacturing facilities, this Guangzhou base will cover the South China market and will also work as a Unilever China export centre, supplying to the Regional Comprehensive Economic Partnership (a free trade agreement among 15 countries in the Asia-Pacific region) region and the global market.

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How has Unilever seen the Chinese market evolve over the past 100 years?

Since entering the Chinese market over 100 years ago, Unilever has been deeply rooted in the mutual development of China’s social and economic life, providing quality services for Chinese consumers.

Entering the 21st century, the country’s consumer goods industry has undergone more rapid development driven by the economic boom. Unilever modernised our supply chain with technology and optimised our product portfolios to be higher-end through cutting-edge technology backed by R&D capabilities to meet the changing needs of Chinese consumers.

With the rapid growth of e-commerce, Unilever is applying more “digital intelligence” tools and leveraging diverse social platforms to accurately cater to the ever-changing market trends, providing consumers with faster, fresher, and more accurate products and services.

Looking forward, we expect that the Chinese market will enter an era characterised by diversity, personalisation, and highly adaptive consumption patterns. We also find that Chinese consumers have become more rational, seeking products with health attributes and high quality. This shift in consumer attitude has led to exciting developments in the industry, transitioning from steady growth to an era of product segmentation and premiumisation.

Unilever will continue to strengthen its resonance with local consumers. We want to enhance their quality of life and empower them to embrace an active and healthy lifestyle.

What do you hope to see for the next 70 years in China?

Unilever has been operating in China for over 100 years. As we look towards the next century, fuelled by our North Asia headquarters, a state-of-the-art global R&D powerhouse in Shanghai and eight production bases here in China, Unilever will continue to provide high-quality products and services to local consumers.

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How has CBBC supported Unilever now or in the past, and in what capacity?

Unilever and CBBC have maintained close cooperation over the past several years. We have navigated the complexities of legal policy together and engaged with government and other stakeholders to facilitate policy advocacy for a better business environment.

The Unilever Leadership Team also actively engaged in CBBC-host events to advocate for UK-China economic and trade engagement, such as the Shanghai celebration dinner for “the 50th Anniversary of the Establishment of China-UK Ambassadorial Diplomatic Relations” and the “Suzhou – Britain economic and trade cooperation roundtable dialogue”.

Forging ahead, we look forward to closer interaction and collaboration to drive more positive changes with a unified voice in the future.

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