Kenvue, Tapestry, Estée Lauder, Unilever: Digital Transformations & Restructuring for 2024
It was a big week for consumer goods companies looking to transform their businesses for 2024 and beyond. Leadership from several key players like Kenvue, Tapestry, Estée Lauder, and Unilever shared progress statements and new initiatives during recent conversations with investors.
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Kenvue’s Big Independent Shift
Several changes are ahead as Kenvue splits from the Johnson & Johnson name and looks to rebrand as an independent public company. CEO Thibaut Mongon shared details about the company’s approach during the latest call with investors, introducing a three-point plan that focuses on 15 priority brands.
- Strengthened in-store presence with improved customer planning, enhanced packaging, and more prominent in-store brand activations
- Elevated consumer engagements via distinct and consistent brand experiences supported by revamped marketing
- Amplified innovation driven by demand-generation activities with consumers and healthcare professionals
“As we exit our transition services agreement with Johnson & Johnson, we are not simply replicating legacy processes, but rather intentionally reinventing our ways of working,” said Mongon. “And this includes implementing modern systems designed specifically to meet the needs of our new company and enable speed, agility, accuracy, and a lower cost base.”
Among the modernized systems will be a new integrated business planning (IBP) process to improve demand forecasting capabilities. The approach will better integrate and automate retailer data and incorporate demand sensing.
Mongon said the company is looking toward “thoughtful revenue management initiatives and relentless supply chain optimization.”
Tapestry’s DTC and Omnichannel Push
Tapestry — parent company of brands like Coach, Stuart Weitzman, Kate Spade New York, and soon Capri, following a planned acquisition — is looking to bolster its omnichannel experiences, reinforcing a data-powered, DTC operating model.
As part of the effort, the company launched a dedicated katespadeoutlet.com site to provide “a more seamless way for outlet consumers to discover and shop the brand online,” according to CEO Joanne Crevoiserat.
Additionally, the company is supporting its omnichannel efforts with a new multi-brand fulfillment center in Las Vegas.
“Overall, by bringing a more focused and unified experience to consumers across all brand touch points, we can more efficiently scale our marketing and merchandising efforts, supporting our goal of driving sustainable direct-to-consumer growth,” said Crevoiserat.
Estée Lauder Restructure in the Works
In its latest earnings call, Estée Lauder announced a company restructure as part of its profit recovery plan. The company is looking to increase its focus on consumer-facing activities in order to support sales growth acceleration and increase agility and speed to market.
“For the consumer, we anticipate faster product and commercial innovation supported by strategic brand-building distribution and go-to-market advancement, where digital leadership is at the core,” said Freda.
The company’s EVP, CFO Tracey Travis said that as part of cost-cutting measures, Estée Lauder will see expected net reductions of 3% to 5% in its global workforce. The company expects to realize incremental profits in fiscal year 2025 and 2026.
Unilever’s Growth Action Plan Progress
Unilever continues to move forward on its portfolio optimization plan, focusing on its 30 Power Brands and using a research-powered approach to innovation.
The company’s CEO Hein Schumacher recently said in an earnings call that the company is already seeing benefits of a sharpened pricing and promotional strategy in the U.S. using this strategy.
The priority, he said, will be scaling multi-year programs that drive category growth, increasing its R&D investment in areas like biotech and microbiome to achieve these goals.
Most notably, said Schumacher, five transactions drove value in 2023: removing Suave and Dollar Shave Club from its offerings and acquiring two premium brands, Yasso in Ice Cream and K18 in Prestige Hair Care. The company has another acquisition planned for 2024: Elida Beauty.
