Unilever CEO Confident in India's Growth, Banks on Quick Commerce Boom

Newly minted Unilever CEO Fernando Fernandez has sounded extremely bullish on India's economic direction and shifting consumer patterns.

Speaking at a fireside chat with Warren Ackerman, Head of Staples Equity Research at Barclays, Fernandez emphasized the significance of India as Unilever's second-largest market and one of the most critical pillars for its growth strategy going forward.

He predicts a strong turnaround in India's economic landscape in the second half of 2025, citing dramatic changes in the country's distribution networks.

"I am certain that the economic conditions of India will turn around, particularly in the second half of the year, with dramatic changes in distribution networks," Fernandez said.

Three drivers, he believes, will propel this momentum: the rise of a successful consumer base, shifting consumption habits, and the rapid expansion of quick commerce.

Quick commerce today represents just 2% of Unilever's total sales in India, but Fernandez is forecasting that this figure will increase to 15% over the next three years, revolutionizing the retail sector and cementing Unilever's footprint in the country.

In keeping with its growth-at-all-costs strategy, Unilever recently purchased Indian beauty brand Minimalist, a move Fernandez considers to be a catalyst for speeding up growth in the beauty and personal care business.

Instead of altering its current portfolio, he considers such acquisitions as a way to speed up Unilever's growth in India's thriving beauty market.

"The Minimalist buy is a very evident demonstration of our intent to drive our portfolio ahead in India at a faster rate," Fernandez said.

He also stressed the growing importance of consumer desires, stating, "Desire has been a strong theme during my time in the beauty and wellbeing category. I think it can be extended to every business segment, because today's customer is much more discerning and demanding."

One of the significant changes under Fernandez's leadership is Unilever's move towards "social-first" marketing. He wants to create a large influencer network across India, with a vision that every zip code will have a minimum of one influencer endorsing Unilever's products.