Investment, Not Profitability Drives Unilever's China Business

For consumer products giant Unilever, China remains too big and untapped to regard profitability as the main measure of success, says The Wall Street Journal.

 

In an interview with the newspaper, Harish Manwani, president of Unilever's Asia, Africa, Central and Eastern Europe division discloses that Unilever is trying to segment China geographically and price products so that they generate a profit margin that permits it to continue investing.

 

"The driver of our growth is not to make money, but to continue investing in this market," Manwani told the Journal. "No one has actually started penetrating the Chinese market in a real sense."

 

According to the Journal, the company, which reported global revenue of €40.52 billion (US$58.11 billion) last year, opened a 30,000-square-meter research centre yesterday in Shanghai at. The centre, which costs €50 million, is just one of six such facilities Unilever has globally.
 

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern