10.25.23
Henkel is #14 on our Top Global Beauty Companies 2023 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
The other fiscal influence came from a newly implemented portfolio measure that entailed rolling Henkel’s Laundry & Home Care and Beauty Care businesses into an integrated “Consumer Brands” business unit. The move, which transpired in January 2022, was implemented to create “a multi-category platform for future growth.”
Henkel also reported progress in transforming its consumer portfolio, resulting in fundamental changes that include the global exit from the Oral and Skin Care categories, and from selective Body Care markets. Going forward, Henkel said it would continue to review its portfolio and “further reduce complexity.”
The second phase of the transformation will focus on the supply chain. To this end, Henkel wants to improve efficiency in its own production set-up and optimize the contract manufacturers network and its procurement costs. Living up to the “one face to the customer” principle, the company wants to drive commercial integration with optimized logistics capabilities. This second phase has already begun, and the measures are expected to be mostly implemented by the end of 2025, generating an estimated net savings of around 150 million euros.
In Henkel beauty news, the company acquired Shiseido’s Hair Professional business in Asia-Pacific and opened its “J-beauty innovation hub” in Tokyo. The hub for the Hair Professional business leverages the expertise of Schwarzkopf and Shiseido Professional in hair color innovation and trends as well as premium hair and scalp care, anti-hair loss, styling, and perm solutions.
At the grand opening, Carsten Knobel, Henkel CEO, said, that the new innovation hub was positioned to help accelerate impactful innovation and further strengthen Henkel’s Hair Professional business in that strategically important region.
In October, Henkel launched a salon-exclusive program that centers on its SalonLab Smart Analyzer, a digital device that uses a near-infrared sensor to analyze hair at a molecular level, enabling hairdressers to recommend hyper-personalized SalonLab&Me hair care products and services best suited for each client’s unique hair type.
As part of its phase two supply chain focus, Henkel announced that it has consolidated the production network for the European Hair and Body Care business. In addition, the company began rolling out a “1-1-1 principle” related to driving forward commercial integration with optimized logistics processes.
Overall, Henkel said it expected global economic growth to weaken in 2023, with inflationary pressures likely to result in labor cost increases and continued high energy and commodity costs, with average prices for direct materials being increased by a low to mid-single-digit percentage compared to the 2022 annual average. That said, Henkel said it assumed industrial demand will be more subdued than in the previous year, resulting in slowed growth in key areas of the company’s consumer goods business, likely translating into organic sales growth of between 1-3% in fiscal 2023.
Read Next: Amorepacific is #15.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Corporate Sales:
$10.2 billionBeauty/Personal Care Sales:
$4.2 billionKey Personnel:
Carsten Knobel, chief executive officer; Marco Swoboda, executive vice president, finance (CFO), purchasing and global business solutions; Sylvie Nicol, executive vice president, human resources, infrastructure and sustainability; Wolfgang König, executive vice president, Henkel Consumer Brands; Pernille Lind Olsen, president of North America region.Major Products/Brands:
Schwarzkopf, Dial, Syoss, Alterna, Blendax, Blonde, Color & Art, Diadermine, Fa, Gliss, Joico, Kenra, Naturelle, SexyHair, Taft, ZotosNew Products:
Schwarzkopf Keratin Color, Color Alchemy, SalonLab&Me, Dial Complete Antibacterial Liquid Hand Soap, Gold, Joico Defy Damage.Comments:
Henkel’s Beauty Care business unit experienced a 2.6% sales decline in 2022. Although its Hair Professional business achieved strong sales growth, the company attributed the loss to its consumer business’ organic, below-the-prior-year level sales.The other fiscal influence came from a newly implemented portfolio measure that entailed rolling Henkel’s Laundry & Home Care and Beauty Care businesses into an integrated “Consumer Brands” business unit. The move, which transpired in January 2022, was implemented to create “a multi-category platform for future growth.”
Henkel also reported progress in transforming its consumer portfolio, resulting in fundamental changes that include the global exit from the Oral and Skin Care categories, and from selective Body Care markets. Going forward, Henkel said it would continue to review its portfolio and “further reduce complexity.”
The second phase of the transformation will focus on the supply chain. To this end, Henkel wants to improve efficiency in its own production set-up and optimize the contract manufacturers network and its procurement costs. Living up to the “one face to the customer” principle, the company wants to drive commercial integration with optimized logistics capabilities. This second phase has already begun, and the measures are expected to be mostly implemented by the end of 2025, generating an estimated net savings of around 150 million euros.
In Henkel beauty news, the company acquired Shiseido’s Hair Professional business in Asia-Pacific and opened its “J-beauty innovation hub” in Tokyo. The hub for the Hair Professional business leverages the expertise of Schwarzkopf and Shiseido Professional in hair color innovation and trends as well as premium hair and scalp care, anti-hair loss, styling, and perm solutions.
At the grand opening, Carsten Knobel, Henkel CEO, said, that the new innovation hub was positioned to help accelerate impactful innovation and further strengthen Henkel’s Hair Professional business in that strategically important region.
In October, Henkel launched a salon-exclusive program that centers on its SalonLab Smart Analyzer, a digital device that uses a near-infrared sensor to analyze hair at a molecular level, enabling hairdressers to recommend hyper-personalized SalonLab&Me hair care products and services best suited for each client’s unique hair type.
Looking Ahead:
In the first half of 2023, Henkel reported that its newly formed Consumer Brands business unit was on track to realize a net savings (before reinvestments) of at least 400 million euros by the end of 2026. Henkel also reported that its Shiseido Hair Professional acquisition has been performing well.As part of its phase two supply chain focus, Henkel announced that it has consolidated the production network for the European Hair and Body Care business. In addition, the company began rolling out a “1-1-1 principle” related to driving forward commercial integration with optimized logistics processes.
Overall, Henkel said it expected global economic growth to weaken in 2023, with inflationary pressures likely to result in labor cost increases and continued high energy and commodity costs, with average prices for direct materials being increased by a low to mid-single-digit percentage compared to the 2022 annual average. That said, Henkel said it assumed industrial demand will be more subdued than in the previous year, resulting in slowed growth in key areas of the company’s consumer goods business, likely translating into organic sales growth of between 1-3% in fiscal 2023.
Read Next: Amorepacific is #15.