Corporate Sales: $19.8 billion
Beauty Sales: $4.2 billion
Key Personnel: Hans Van Bylen, chief executive officer; Carsten Knobel, executive vice president, finance, purchasing and integrated business solutions; Pascal Houdayer, executive vice president, beauty care.
Major Products/Brands: Personal care, skin care, professional and branded hair care, antiperspirants & deodorants and oral care sold under brands including Schwarzkopf & Henkel, Schwarzkopf, Indola, Syoss, Clynol, BC Bonacure, Dial, Fa, Got2B, Right Guard, Tone, Coast, Dry Idea, Aok, Diadermine, Licor del Polo, Antica Erboristeria, Theramed and Pert.
New Products: Schwarzkopf Men, Schwarzkopf Keratin Color, Dial Miracle Oil and Dial Omega Moisture Body Washes Featuring Marula Oil and Sea Berries, Dial Baby Body+Hair Wash, Dial Kids Foaming Hand Wash, Taft Ultimate.
Comments: Beauty represented about 21% of Henkel’s overall corporate sales and the company enjoyed a +2.1% growth in organic beauty care sales in fiscal 2015. Henkel credited its strong customer focus as one of the “key pillars” of its “long-term profitable growth.” The company also continued to follow a strategy of global expansion for its beauty arm, with help from its Düsseldorf-based Beauty Care Lighthouse customer center, which extended its reach and strategic partnerships with retailers around the world, leveraging global and local agreements and joint business planning.
Henkel’s emerging markets made “above-average” contributions to overall growth, with organic sales expansion of 5.9% and momentum coming from regions of Eastern Europe, Africa/Middle East and Latin America.
Pointing to the need to keep up with a beauty care environment characterized by “fierce completion,” Henkel invested internally to improve efficiencies and more flexibly meet the needs of its global beauty care customer base. Specifically, the company installed a new high-speed filling system for liquid products at its Wassertrüdingen, Germany site. Production capacity was also expanded in Asia, America and Eastern Europe.
In January, Henkel introduced its Schwazkopf Ultime hair color line to the U.S. mass market with an exclusive Walmart launch. Developed with Claudia Schiffer and celebrity hairstylist Richard Collins, the collection is divided into four lines: essence Ultime (four hair care products for various hair needs), Styliste Ultime (styling products including hairspray dry shampoo), color Ultime (hair color with 26 shades) and Keratin Color Ultime (16 hair colors for mature hair).
In August, Henkel launched the Schwarzkopf Men hair care line to China, Germany and Russia, representing a confluence of two important factors: men’s grooming and market sectors Henkel considers important to advancing its beauty care business.
Henkel also expanded its popular range of body washes with the addition of Dial Miracle Oil Body Wash and Dial Omega Moisture Body Wash formulated with marula oil and sea berries (respectively) to quench dry skin.
News of Note in 2016
Henkel began 2016 with a flurry of corporate jostling. In January 2016, CEO Kasper Rorsted, announced that he would leave Henkel to take over as CEO of Adidas. Rorsted was succeeded by Hans Van Bylen, who up until that point had served as executive vice president of Beauty Care. Replacing Van Bylen is Pascal Houdayer. Houdayer was previously Henkel’s corporate senior vice president in the laundry and home care business unit, having joined Henkel in 1993.
In March 2016, Henkel announced the acquisition of P&G’s Pert, Shamtu and Blendax hair care brands, which expand Henkel’s positioning in the emerging market regions of Africa/Middle East and Eastern Europe. The sales of the brands to be acquired reached close to $100 million.
Henkel said that by the end of 2016, it expects to have increased its total corporate sales in emerging markets by $11.2 billion.