Win in chosen geographies and categories
We aim to hold a number one or number two position in the geographies and product categories where Essity chooses to operate. We compare ourselves with the best competitors in each product category in each geographic market and aim to perform better or in line with the best competitor.
Essity has a clear priority for which geographic markets it wants to operate in, and which product categories it will offer in these markets. Sales are conducted in approximately 150 countries. In approximately 90 of these, Essity holds the number one or two position in at least one product category. Essity aims to increase the emerging markets’ percentage of net sales and earnings, since these markets’ potential for growth is higher because market penetration of hygiene and health products is lower than in the mature markets. We are prioritizing growth in selected emerging markets such as China, Southeast Asia, Latin America, Eastern Europe and Russia, where we already have strong market positions. In emerging markets, which accounted for 35% of net sales, organic net sales increased 5.9% in 2018.
Essity creates value through profitable growth. Every product category in each market must generate a certain level of profitability if growth is to create value. In 2018, we continued work with Cure or Kill, a plan to improve profitability for underperforming market positions. We prioritize growth in product categories with the highest margins and our ambition is that these will account for an increasing share of Essity’s net sales. This means we are focusing on growth in Incontinence Products, Medical Solutions, Feminine Care and Professional Hygiene while prioritizing improved margins in Consumer Tissue and Baby Care. In addition to organic growth, Essity has the ambition to grow through acquisitions.
Expanding the customer offering
To grow our product categories and strengthen market positions, we work continuously to improve and expand our customer and consumer offering. For example, Essity offers wet wipes, skincare products and soap. Expanding the customer offering is also about providing service and solutions to customers and consumers and developing digital solutions.
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