Paul Polman on the ‘New Normal’

Four distinct trends are shaping the industry and the global economy, insisted Paul Polman, CEO of Unilever, at the World Conference on Detergents in Montreux.

These trends are:
• The rise of emerging countries such as China and India;
• Increased digitalization;
• New economic order; and
• An urgent need for sustainability.

Polman noted that rising standards of living in emerging markets will deliver several billion new customers to the global household products industry. In fact, by 2030, consumers in emerging urban centers will exceed 3.9 billion.

Today, 42% of internet users are from Asia and the expansion of the digital age continues. Furthermore, there are 400 million mobile phones in India and 500 million Facebook users around the world. To reach these consumers, marketers must look beyond traditional print and television mediums.

But in order to be successful, companies have to regain the consumer’s trust, which was destroyed by the Great Recession and the economic turmoil that created it.

“The subprime crisis took us to the edge and greed had a lot to do with it,” Polman insisted. “Public confidence is low and not getting better.”

Finally, he outlined some of the steps Unilever has made toward sustainability such as committing to the use of sustainably grown palm oil and developing low-cost business models to solve developing and emerging market problems such as water scarcity.

In fact, Unilever is committed to the goal of doubling its business while reducing its environmental impact.

“We play the most important role in making the world clean, safe and hygienic,” he told the audience. “We are at a turning point. Let’s grab the chance of a lifetime.”