Developing & emerging markets
In 2008, 47% of our sales were in developing and emerging markets – a figure set to grow, especially in Asia.
Developing new business models
Addressing societal issues also holds the potential for business growth and success – for instance, through meeting the needs of low-income consumers in developing and emerging markets.
Our deep roots and early engagement in these markets have given us valuable insights into the needs of consumers at the base of the 'economic pyramid'. Whether it is through new distribution channels, using smaller formats or creating new products, we are trying to reach these low-income members of society.
For instance, priced at the equivalent of between 13 and 16 euro cents in India and Indonesia, our Pepsodent Smart Clean toothbrush brings oral health care within the reach of the lowest-income consumers.
Our Pureit in-home water purifier provides affordable and safe drinking water for middle-income families in India, with one rupee buying 3.5 litres of Pureit safe drinking water. Pureit also creates jobs by employing women to sell the product door to door.
Some trade-offs are inevitable, however, in trying to meet all our social, economic and environmental commitments. Making products available in small-pack sizes and single-dose sachets brings quality brands to some of the world's poorest consumers, but also contributes to litter in markets with inadequate waste management infrastructure. We are currently working with stakeholders to resolve this dilemma.
Supporting economic development
In 2002 we co-founded the Novella Partnership, a programme to scale up production of allanblackia oil (used in spreads) in Africa while reducing poverty and promoting sustainable enterprise.
The partnership comprises Unilever, the World Conservation Union (IUCN), the Netherlands Development Organisation (SNV), the World Agroforestry Centre (ICRAF) and others. By 2008, around 10,500 people in Ghana and Tanzania took part in raising 40,000 allanblackia seedlings, with plans now in place to accelerate allanblackia cultivation in Nigeria.
Since 2002 we have invested €7 million in the programme, which has enabled us to secure important supplies of allanblackia's high-quality oil while boosting farmer incomes by an estimated €100,000 in total. By 2017 the partnership aims to include 200,000 farmers and plant 25 million trees, leading to an estimated doubling of farmer incomes.
In 2008 we reached an important milestone as the European Commission approved the use of allanblackia oil in spreads.
In distribution
Our Shakti initiative, launched in India in 2000, creates micro-enterprise opportunities for rural women to sell Unilever products door to door. By the end of 2008 more than 45,000 Shakti entrepreneurs covered 3 million rural homes, doubling our rural reach while doubling household incomes for participants. Similar initiatives now run in Sri Lanka, Bangladesh and the Philippines.
Across the value chain
Unilever is a partner in a project run by the World Economic Forum's Business Alliance against Chronic Hunger, which helps poor smallholder farmers in Kenya strengthen their businesses and increase their earning potential.
