Investing.com -- Barclays analysts said on Thursday that Unilever (LON: ULVR ) could accelerate its transformation under new CEO Fernando Fernandez by focusing on five key business areas to drive growth and improve performance.
Unlocking Growth in Asian Deodorants
Unilever has a strong portfolio of deodorant brands, including Rexona, Axe, and Dove, but the firm has more room to expand in Asia, where deodorant sales have tripled over the last 15 years. Barclays noted that the company sees Asia as a major growth opportunity, with market expansion at a compound annual growth rate (CAGR) of 8.3%.
Reviving the Food Business in India
Unilever’s Horlicks brand, acquired in 2020 as part of a €375 million deal with GlaxoSmithKline (NYSE:
GSK
), has underperformed in India. The malted-milk brand, once seen as a key asset in the company’s expansion into health-focused food and beverages, has lost market share across Asia Pacific, Barclays said.
Turning Around Lifebuoy and Lux in Asia
Barclays highlighted that Lifebuoy and Lux, two of Unilever’s legacy brands, have struggled to maintain market share in Asia due to increasing competition from local brands, shifting consumer preferences, and geopolitical pressures. In Indonesia, for example, local brands like Wings Group’s Nuvo have gained traction, with pricing 20% below Lifebuoy’s equivalent products. Unilever has begun repositioning these brands, including Lifebuoy’s expansion into premium personal care, but further innovation is needed to sustain momentum, Barclays said.
Premiumisation of Beauty Brands
Unilever lags peers in the premium beauty segment, where competitors have nearly double the exposure to high-margin categories. Barclays sees an opportunity for Unilever to build on the success of Dove and Vaseline by pushing further into premium skincare, particularly in emerging markets. The Vaseline Gluta-Hya body care range, designed for humid climates, and Radiant X, catering to melanin-rich skin, reflect the kind of innovation needed to strengthen Unilever’s presence in higher-end beauty categories, the analysts said.
Expanding Prestige and Health Brands
Unilever’s Prestige business, which has grown to approximately €3.5 billion in revenue, remains a long-term growth driver. Barclays highlighted the success of brands like Liquid IV, which has expanded sevenfold to €850 million in sales, and Nutrafol, which has tripled to €650 million. The firm also pointed to Unilever’s ambitions for K18, a haircare brand targeting premium consumers.
Barclays said that under Fernandez’s leadership, Unilever’s ability to sharpen focus in these areas could be key to accelerating its transformation and driving sustained growth.