Development of our businesses

In fiscal 2012, Henkel’s worldwide sales amounted to 16,510 million euros, 43 percent of which were generated in the growth regions of Eastern Europe, Africa / Middle East, Latin America, and Asia (excluding Japan). Some 43 percent of our global workforce are now based in the growth regions, where we currently source 46 percent of our global purchasing volume. We are therefore an important employer and local economic partner in these regions as well.

In growth regions, in particular, the question of the social added value of products takes on greater significance. Products aligned to the needs of consumers in the lower income brackets not only have enormous economic potential, but also make a positive social contribution in terms of domestic hygiene and health. In order to do justice to the differing needs throughout the world, we pursue different strategies according to individual market situations:

• Globally uniform products: Wherever customers and consumers around the world have the same needs and expectations, we offer globally uniform products. Examples include the internationally identical demands made on an instant adhesive or on our industrial adhesives.

• Locally adapted product formats: Local consumer needs, income levels and infrastructures may vary widely in our markets. We therefore adapt package sizes or distribution channels so that they will match local conditions, in order to make our products and quality accessible to the broadest possible group of people. Consumers in the lowest income bracket, for example, purchase small units as soon as they can spare the money to do so. We take this into consideration when planning pack sizes and selling prices. In Latin America, for instance, we also market the manual dishwashing detergent Pril in a pack size of 30 milliliters at a price of approximately 10 euro-cents. The same applies to our laundry detergent Mas in Mexico. On the South American market, we offer deodorant creams and shampoos in small sales units of 10 to 20 milliliters. In Mexico, for example, we make a modern way of washing accessible to consumers with lower income by offering the 1-2-3 heavy duty liquid detergent in a 900ml pouch.
• Locally adapted product performance: Different regional circumstances may also require adjustments to our product formulations and performance. In North Africa and Latin America, for example, the scarcity of water necessitates careful use of this limited resource. Henkel has therefore developed and introduced a fabric softener with special ingredients that enables washing foam to be rinsed out very easily by hand. Other examples are our craftsmen and DIY products in Eastern Europe. Since the local building materials often differ from those in Western Europe, we offer locally adapted products such as the tile adhesive “CM9” or the self-smoothing floor leveling compound “Thomsit DA”. Cultural differences are also taken into account during product development. In many North African countries and in India, there is a tradition of wearing white garments. Our laundry detergent "Nadhif" for the North African market therefore contains ingredients that give the laundry a radiant white appearance.