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.

Win in all channels

Digitalization is rapidly changing purchasing behavior and the boundaries between different sales channels are being erased. Our offerings are available and attractive regardless of channel and platform. We aim to have a higher market share online compared with offline in all markets and for all product categories. This means we are investing in technology, innovation, collaboration and communication with the aim of winning in all channels.

Geographic presence

Essity has a clear priority for which geographic markets it wants to operate in, and which product categories it will offer in these markets. We have sales in approximately 150 countries and in about 90 of these, Essity holds the number one or two position in at least one product category. As the potential for growth is higher in emerging markets, because market penetration of hygiene and health products is lower than in the mature markets, our ambition is to increase emerging markets’ share of net sales and profit. 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.

Expanding the offering

To grow our product categories and strengthen market positions, we are improving and expanding our offerings through adjacencies. We achieve this organically through innovations and collaborations but also through acquisitions of technology and product offerings. Today, Essity’s offering includes wet wipes, skincare products and soap in several product categories. Expanding the customer offering is also about providing service and solutions to customers and consumers and developing digital solutions and sustainable business models that increase our customers’ efficiency and reduce environmental impact.

 

Profitable growth

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. 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. Activities to improve underperforming market positions continued and resulted in improved profitability in several markets.

Portfolio strategy