Consumer goods giant Hindustan Unilever will continue to focus on quality, brand strength, and category development rather than reacting to short-term market fluctuations, Chief Executive Officer Rohit Jawa said during the CNBC-TV18 Global Leadership Summit held on November 14.
Jawa's comments come as rising inflation and softened consumer spending in urban markets have impacted earnings across leading Fast-Moving Consumer Goods (FMCG) companies.
"We discussed rural markets a year ago in a similar forum. Now, rural demand is coming back, and we’re focusing on urban markets today.. we must stay on strategy, I'm telling myself and everyone, the company, keep calm, carry on and keep developing the market industry for the future," Jawa said when asked about the depressing urban demand across segments.
"All of the trends that we've seen happening in other markets that have gone through this after development are happening here as well," Jawa added.
In Q2FY25, HUL reported a revenue growth of 1.5 percent YoY, mainly due to growth in the home care segment, while beauty & personal care and foods & refreshment segments declined. Its consolidated net profit declined 2.4 percent to Rs 2,591 crore from Rs 2,668 crore in the same quarter a year ago, falling more than Street expectations.
While there is a muted urban demand, the company is also dealing with rising consumption shifts to premium segments.
"The macro picture of the consumption story, especially consumer goods is that a massive market where every consumer wants to come as far as better quality of life ..people want to improve the quality of life," Jawa said, adding that the HUL is looking to offer products that help people upgrade their quality of life at a price and value that suits their pocket.
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