Drive Growth

Driving growth in mature and emerging markets will be a key strategic priority for Henkel. In order to achieve this, we will focus on targeted initiatives to create superior customer and consumer engagement, strengthen our leading brands and technologies, develop exciting innovations and services, and capture new sources of growth.

Superior Customer and Consumer Engagement

With superior customer and consumer engagement, Henkel aims to accelerate growth with top customers through intensified partnerships, and to outperform market growth with its leading customers in all three business units. This will be enabled by a step-change in customer-centricity - focusing on customer and consumer needs - as well as by executing detailed customer and consumer engagement plans, involving all levels of the organization. In addition, Henkel wants to better capture growth opportunities by addressing the needs of specific target groups with customized products, services and innovations.

Leading Brands and Technologies

Henkel also plans to further strengthen its leading brands and technologies, increasing sales of its top-performing global brands as well as its leading local brands: Sales of the top 10 brands should increase to 75% of total group sales by 2020. This will be driven by targeted investments to strengthen Henkel 's top brands, creating competitive advantages through capturing new technologies and developing customized products and solutions across various industry segments.

Exciting Innovations and Services

Growth will also be driven by continuously enhancing Henkel 's ability to develop exciting innovations and services. This will allow Henkel to differentiate in highly competitive markets and to change from a "product focus " to a "solution focus " with more differentiating products and services in both its consumer and industrial businesses. By 2020, Henkel aims to develop more accretive innovations and plans to increase the sales share from its top innovations. In order to drive innovation capabilities and create opportunities to engage its customers, Henkel will develop and prepare the opening of new innovation centers for its Adhesive Technologies business in Düsseldorf and Shanghai. At the same time, Henkel will expand service offerings and models across all business units. These will include consultancy and technical advice for its industrial and professional customers, as well as digital service offers in the consumer businesses such as online booking platforms for hairdresser appointments, subscription models or automatized reordering.

New Sources of Growth

Henkel will also complement its strategic focus on driving growth in its existing core business by capturing potential new sources of growth, for example by entering into new markets to close white spots in mature and emerging markets. Targeted acquisitions will help to complement Henkel 's portfolio, strengthen its position in attractive markets and categories, and expand into adjacent categories. In addition, the company will set-up a dedicated Venture Capital Fund with up to 150 million euros to invest in start-ups with specific digital or technological expertise. While Henkel aims to drive organic growth, acquisitions will be an integral part of the company 's strategy to further strengthen its portfolio.