Emerging markets the new focus forReckitt boss
Thursday 09 February 2012
Reckitt Benckiser's new boss, Rakesh Kapoor, took a gamble on emerging markets yesterday as the consumer goods giant wrestles against sluggish growth and fierce competition in the West.
Mr Kapoor, who took over from Bart Becht last September, is leading a push into 16 faster-growing "powermarkets" and cracking down on costs across the group in hard-pressed Western markets.
Reckitt is also channelling an extra £100m investment into its leading health and hygiene brands which include Durex, Nurofen, Dettol and Harpic.
Mr Kapoor said 2012 would be a year of "transition and investment", and warned: "With slower market growth and increased competition, we need to reshape our strategy."
Reckitt expects its global market to grow by a sluggish 1 to 2 per cent this year, but Mr Kapoor is hoping to increase sales at double that rate by emphasising the company's health and hygiene products. These generate the highest profit margins and the strongest growth and consumer loyalty, and should account for 72 per cent of its core business by 2016, up from 67 per cent now.
This leaves Reckitt's foods and pharmaceuticals businesses, which include the heroin treatment Suboxone, out in the cold, while it is also looking at closing down its non-branded private label business.
Mr Kapoor wants to take emerging market exposure to 50 per cent of group revenue, from the current 42 per cent, by 2016. Sales fell 1 per cent in Europe, in contrast to emerging markets, where sales roared ahead 13 per cent. Overall sales were up 12 per cent to £9.5bn last year.
Reckitt employs 21,000 worldwide, and raised the spectre of job cuts yesterday as it pencilled in £75m in costs this year for the merger of its European and North American divisions.
- 1 Man who was struck and killed by lightning in Brecon Beacons 'was carrying a selfie stick'
- 2 Lisa Randolph-Gant: Queen Elsa cake maker says she will carry on baking and will not let people 'break her spirit'
- 3 Tube strike: This pedestrian-friendly map tells you the time it takes to walk between stations
- 4 Pamplona Running of the Bulls 2015: Three men gored and 10 hospitalised on first day of festival
- 5 Sarah Jessica Parker explains why she is not a feminist: 'It's not just about women now'
Man who was struck and killed by lightning in Brecon Beacons 'was carrying a selfie stick'
Greece debt crisis: Greek future in the euro slips into deeper uncertainty as Alexis Tsipras arrives at emergency talks without a written plan
Man soars over Calgary after tying 110 balloons filled with helium to his lawn chair for PR stunt, gets arrested for mischief
Tube strike: This pedestrian-friendly map tells you the time it takes to walk between stations
Pamplona Running of the Bulls 2015: Three men gored and 10 hospitalised on first day of festival
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
Greece debt crisis: Angela Merkel and Francois Hollande issue Athens with 24-hour ultimatum to avoid crashing out of the euro
Greece crisis: Referendum exposes a gaping hole at the heart of the European Union – its lack of genuine legitimacy
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...