A Quick Guide to Unicharm
(Chapter 2: Strengths that support Unicharm’s sustained growth)
Strengths that support Unicharm’s sustained growth
The popularity of Unicharm products in many consumer markets around the world reflects our efforts to develop products tailored to the cultures and living environments of each country and region, backed by detailed research into local lifestyles and consumption habits. At the same time, we have been working to distribute our products to as many retailers as possible and communicating the value of our product range to the fullest by working with retailers to create shopper-focused sales areas using digital technology.
To remain competitive amid rapid advances in IT and globalization, we have to think and act faster.
Using a dynamic cycle of trial and error, we will adjust our “winning patterns” to match changes in the operating environment and transfer them to overseas markets.
Implementing strategies for each phase of market growth
Unicharm divides market growth stages into “introduction”, “growth”, “widespread adoption”, and “maturity”, clarifying the strategies appropriate for each phase. By assessing market maturity levels and introducing the right products in a timely manner, we aim to expand product penetration rates and maximize profitability. Furthermore, the penetration rate of nonwoven fabric and absorbent material products is closely correlated with a country's per capita GDP. We believe that when per capita GDP exceeds $3,000, the adoption of sanitary pads and disposable baby diapers advances rapidly. As per capita GDP rises further, the penetration rates of these products level off at a high rate, while the adoption of disposable adult diapers and pet care products begins to expand.
Currently, demand for sanitary pads and disposable baby diapers is increasing simultaneously in emerging markets across Asia, Africa, and South America. Looking ahead, demand for disposable adult diapers and pet care products is expected to increase not only in developed countries but also in the Asian region.
Against this backdrop, the reason Unicharm's products have earned high praise from consumers lies in our “adept marketing”, which accurately captures diverse needs through local research, and our system that ensures “stable production and supply at competitive costs”. Moreover, we respond flexibly to channel shifts caused by changes in purchasing behavior due to digitalization. By designing a seamless purchasing experience from the customer's perspective across both online and offline channels, we fully communicate the value of our products at every consumer touchpoint. Furthermore, in countries and regions where the social environment is not yet fully developed, we collaborate with governments and local NGOs to support women's advancement in society, thereby enhancing our brand image overseas.
Implementing our strategies using “Management with Resonance” – close cooperation between management and frontline employees
At Unicharm, all Group employees practice our distinctive management model, “management with resonance”. “Management with resonance” is a management approach in which the management team gets frequent exposure to timely feedback direct from the front lines, while employees learn about the management team's perspectives, viewpoints, and time frames. This process promotes the growth of individual employees and leads to the growth of Unicharm as a whole. By firmly establishing shared purposes and goals between employees and the management team, we cultivate a sense of unity that is simultaneously challenging and reassuring. We aim to achieve a resonance that is like a pendulum of day-to-day ingenuity and know-how swinging back and forth between management and employees. Through the practice of this “management with resonance”, we aim to develop human resources capable of proactively identifying issues, formulating methods to resolve them, and continuously working on them until they are resolved. We refer to employees who demonstrate such mindset and behavioral traits as “resonant personnel”, positioning them as the Company's ideal personnel profile.
To promote management with resonance “moves ahead while thinking”
Since 2003, Unicharm has been operating the Schedule–Action–Performance–Schedule (SAPS) management model, through which employees work to achieve goals using their own initiative by actively operating a Plan–Do–Check–Act (PDCA) cycle, enhancing the strength of both employees and the organization. However, in the current “new normal” environment, where the business landscape is constantly changing, it became necessary to establish a model that flexibly accommodates these changes. Recognizing this need, we replaced the SAPS management model with the Observe–Orient–Decide–Act Loop (OODA Loop) methodology in 2019.
With the OODA Loop methodology, we quickly grasp unexpected changes by observing current business conditions, appropriately orient ourselves to the situation, reach a decision, and then take action. We repeat this cycle while constantly reviewing approaches and making fundamental changes. The OODA Loop methodology enables our employees to respond quickly to changes in the business environment,orient themselves to the situation, make decisions, and take actions that lead to results.