Slowing economy and rising inflation have not deterred the country’s largest consumer maker Hindustan Unilever (HUL) from betting big on premium products.
The Indian arm of global consumer giant Unilever has launched over half-a-dozen premium products such as Tresemme, Toni and Guy, TIGI, Surf Excel Liquid and Comfort over the last 18 months. This includes the recently launched Magnum ice cream bar.
The premium play will help the company in expanding its margins, say analysts. HUL has been posting a double-digit growth in its personal care and wash category over the last few quarters on the back of premium brands such as Tresemme and TIGI.
Analysts say Magnum will create a similar impact in the food category. On the launch of Magnum, HUL’s Executive Director (Foods), Geetu Verma, said the Indian market is fast “premiumising,” as consumers want to try out new products.
Based on this insight, the company launched Magnum. It is available in Mumbai and Chennai, and will be rolled out in Bangalore, Pune and Hyderabad in the next few months.
Verma said the ice-cream market, which has been flooded with high-end international brands such as Movenpick, Londonderry, and Hagen Dazs amongst others, has been posting double-digit growth annually for last 3-4 years; however, the per capita consumption is very low compared to other Asian countries.
“There are enough opportunities to increase the consumption both at the affordable and premium end,” she said.
Meanwhile, the company said the recent launch of Magnum is an example of HUL leveraging the parent company’s global portfolio. More brands from the stable are expected in the next few months.