Unilever logoSupporting the build of a $1 billion skincare portfolio

Strategic portfolio growth & market intelligence

Hot Pot supported Unilever in defining a strategy to build a $1 billion premium skincare portfolio in China, addressing the company's over-reliance on everyday, low-margin products.

The challenge

Unilever, a global leader in FMCG, faced a significant gap in its China skincare portfolio. While powerhouse brands like Dove and Vaseline were established household names, they were primarily perceived as everyday products at lower price points.

With the Chinese beauty market rapidly shifting toward premiumisation and luxury, Unilever’s existing portfolio was operating in a high-volume but low-margin space. The key challenge was to move beyond this everyday perception and define a strategic roadmap to capture the ‘masstige’ (mass-prestige) and premium skincare segments.

Unilever’s global headquarters needed a data-driven strategy to unlock a $1bn target over three years by identifying white-space opportunities and potential M&A targets.

Unilever_portfolio

Our approach

Hot Pot conducted a skincare sector audit to map the future of the category in China. Our methodology integrated quantitative ecommerce data with qualitative consumer sentiment:

Competitor benchmarking

We audited 19 brands, performing deep dives into market leaders like L'Oreal and Lancôme to understand their "China for China" organisational speed and “skintellectual” product strategies.

Ecommerce data mapping

We manually mapped the digital shelf on Tmall and JD.com, analysing pricing hierarchies, SKU performance, and shopping festival dependencies (Singles’ Day and 618).

Cultural intelligence

Utilising our Cultural Intel Community, we analysed search trends on Baidu and social listening on WeChat and Rednote (Xiaohongshu) to identify rising demand spaces like Male Beauty, Anti-Acne, and Clean/Sustainable Skincare.

Organisational design audit

We analysed how competitors like Olay managed autonomous brand teams in China to respond to local trends with China speed.
Unilever China Skincare audit

The strategic blueprint

Our findings provided Unilever with a definitive roadmap for premiumisation:

  • Portfolio Gap Analysis: We identified the urgent need to acquire or develop brands in the aspirational quadrant to balance the current mainstream-heavy portfolio.
  • The Masstige Play: We recommended a shift toward science-backed, ingredient-led narratives to appeal to China's sophisticated skintellectual consumers.
  • Ecommerce Optimisation: We developed a channel-specific strategy, highlighting Tmall for premium buyers and JD.com for the growing male skincare market.
  • M&A Recommendations: We identified high-growth domestic C-Beauty brands (such as JLISA, which saw 900% growth) as potential acquisition targets to gain an immediate foothold in the insurgent brand space.
  • Social Commerce: We co-created with KOLs and KOCs to tap into consumer insights and develop exclusive products.
Vaseline China
LUX China

 

 

The impact

Hot Pot presented these actionable insights to over 400 global stakeholders across the UK, Europe and Asia. Our work served as the strategic foundation for Unilever’s subsequent initiatives:

  • Portfolio Re-alignment: Directing the repositioning of Dove and Vaseline toward more premium, derm-focused narratives.
  • Inorganic Growth Strategy: Informing the selection of acquisition targets in the domestic, Korean and Japanese beauty markets.
  • Organisational Transformation: Shifting toward an agile, China-for-China product development model to keep pace with the world's most dynamic beauty market.

Ready to get started?

Book your China Strategic Workshop

 

  1. Start with a 30-minute discovery call so we can understand your China business pain points, focus areas, NPD and more.

  2. Receive a bespoke strategic report built from real-time ecommerce data across Tmall, JD, and Douyin

  3. Attend a presentation and workshop where our strategists will present findings to your team and key stakeholders - online/in-person

Submit the form to get started.