Unilever’s Prestige Beauty Arm Sees Surge in Demand Amidst Economic Challenges
Despite the ongoing cost of living crisis, Unilever’s high-end cosmetic brands under its Prestige division have experienced a significant surge in demand. Vasiliki Petrou, the chief executive of Unilever Prestige, attributes this success to the recession-proof nature of the beauty industry.
With a focus on top brands like Tatcha, Dermalogica, Hourglass, and Living Proof, Unilever aims to revamp its performance by divesting lower-margin divisions and concentrating on premium products. The Prestige division has seen remarkable growth, with 13 consecutive quarters of double-digit sales increases and a turnover of €1.4bn in 2023, compared to €700mn in 2020.
Petrou emphasizes the importance of beauty products in boosting confidence and self-esteem, making them essential even during economic downturns. Unilever’s premium brands now account for 30% of its product portfolio, with a strong emphasis on quality and exclusivity.
The company’s strategic acquisitions, such as Dermalogica and Paula’s Choice, have propelled Unilever’s Prestige division to success. With a decentralized approach to managing luxury brands, Unilever has set itself apart in the competitive beauty market.
Looking ahead, Petrou envisions further growth in the US, UK, and China markets, with a focus on expanding into men’s skincare products. With a projected revenue of €10bn by 2030, Unilever’s Prestige and Health and Wellbeing divisions are poised for continued success in the beauty industry.