UNILEVER

GOES EAST
Case Study

GROUP
NUMBER ONE
 QUESTIONS

Why is Unilever investing so much in

01 emerging markets, especially Southeast
Asia
Southeast Asia's size.

The ASEAN covers one of the most economically dynamic

regions. As of 2018 the GDP of the region is $3 trillion and its
share in world trade exceeds $2.8 trillion. As of 2023, the GDP of
the region is at $3.86 trillion, making it one of the largest
economies in the world
Cost Minimizing Opportunities.

Not only that, its main economies in Singapore, Indonesia, Thailand,

and etc. share specialty in manufacturing. Which makes it the best
for offshoring, the practice of basing a company's processes in the
country in order to lessen manufacturing costs. Lately it has been
reported that China has been having its labor costs, its claim to
fame being the best country for cheap labor, steadily rising which
makes Southeast Asia's access to raw materials and labor much
more profitable for the multinational company, rather than basing
in China.
Sustainability.

The offshoring allows for the better sustainability of the business in

the long run as a variety of Unilever's products including from body
washes to seasonings have been advertised to have natural
ingredients wherein the Southeast Asia has been known to be
strong in the agricultural market. And with this sustainability
marketing, it makes people eager to support them as well.
Racism.

Without mentioning the other countries, it's no joke how Philippines

treats the natural skin color of its inhabitants, while saddening, it
presents an ample opportunity for marketing with Unilever's
hygienic products for its skin whitening benefits. We can stare at our
country for how we idolize Korean Idols and actors for their looks,
even choosing their media more than our own. The other countries
are either like us who want to be a lighter shade or they are white
already and don't want to lose that, facing the facts, we are kind of
obsessed with being white.
 QUESTIONS

Myanmar opened up after decades

of having been closed to business
02 due to political issues. Which
kind of entry-mode strategy did
Unilever select for this country?
When Myanmar closed down for over 5 decades
due to the dictatorship that sealed the country from
the outside, of course we can say that the market
from the country was effectively cut off. We can still
see the effects as the country is in the bottom five in
terms of GDP.
The way Unilever entered the Myanmar market was
by a method wherein they used third-party
distributors in order to get their products sold, not
having properly based yet. But in 2017 entering a
joint venture with one of the biggest fast-moving
consumer goods companies in Myanmar in order to
manufacture and distribute its products, fully
entering the company inside of the country.
Other than this, Unilever has made multiple showings of
itself as a business that cares for the
sustainability of the country and its inhabitants by
launching hygiene programs focused on children in
school. And by partnering with the Myanmar government,
allowing its involvement in creating a long-
lasting sustainable living.