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June 19, 2019

Tatcha acquisition shows Unilever’s dedication to beauty is more than skin deep

Tatcha will now join Unilever’s stable of niche brands that include: REN, Kate Somerville, Living Proof, Murad and Hourglass.

By GlobalData Consumer

British-Dutch consumer giant Unilever has signed an agreement to buy Japanese skincare company Tatcha, for an undisclosed sum.

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Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

Tatcha will join Unilever’s stable of niche beauty brands that include: REN, Kate Somerville, Living Proof, Murad and Hourglass.

What Tatcha acquisition says about Unilever

Tatcha was founded a decade ago in San Francisco by Vicky Tsai. According to a report by Bloomberg, investment bank Bryan, Garnier & Co estimates Tatcha’s 2018 sales to be $70 million.

Earlier this year Unilever added French niche brand Garancia to its portfolio, and in 2016, it acquired men’s grooming brand Dollar Shave Club.

What these acquisitions suggest is that Unilever is targeting younger, more engaged consumers who are willing to spend more and focus on specific products and ingredients.

According to GlobalData’s 2018 consumer survey, 65% of consumers who are 25-34 years of age are willing to pay more for better quality and almost 71% of consumers in this age group consider, ‘how well the products tailored to their needs and personality’ as having the greatest influence on their product choice.

Personal care market

This acquisition may be small but it marks a positive step in strengthening Unilever’s place in the global personal care market.

As consumers are willing to pay more for natural and environmental-friendly products, Unilever’s acquisition of Tatcha may mark a significant step in capitalising on this trend that may prove beneficial for both companies.

Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.