Unilever making 'drastic' changes in ID amidst boycotts

Unilever will reportedly be making "drastic" changes in Indonesia, said its chief finance officer Fernando Fernandez. 

Speaking to analysts, Fernandez said that the company would aim to make its brands "more contemporary" given the "significant societal change" going on, reported Reuters. He added that he expects to see an improvement in the next six months. 

At the same time, a revamp of the distribution system is reportedly underway to stabilise prices, with the group's efforts already yielding some results. 

Don't miss: Unilever splits global media duties with six agencies 

Meanwhile, the company's CEO Hein Schumacher reportedly acknowledged the "long standing issues" in the country and said that Unilever was making a "significant intervention" in Indonesia in Q3 and Q4 that is not going to yield results in the next quarter.

This comes as Unilever Indonesia reported an 18% revenue drop in the third quarter. In its report, Unilever said that it is "making decisive interventions" to fix its long-standing issues in Indonesia, which include removing price instability across channels and resetting stock levels in retail to what it considers "optimum levels". 

The report revealed that Unilever expects to see the benefits of its changes in Indonesia, and China, from the second half of 2025. 

In its Q2 report, Unilever stated that its sales decline was due to "some customers avoiding the brands of multi-national companies in response to the geopolitical situation in the Middle East."

In October this year, Unilever reportedly appointed a number of agencies across several key markets starting with the reappointment of WPP's Mindshare to manage its media accounts in the US, UK and China, according to media reports. 

Unilever has also reportedly brought on new agencies to its roster, including Publicis Groupe, Dentsu and Interpublic. 

Publicis Media reportedly secured five Southeast Asian markets including Thailand, the Philippines and Vietnam. This was previously managed by WPP. 

In tandem, Interpublic's Initiative secured the Canadian account from Omnicom Media Group. Meanwhile, WPP has further expanded its reach in Sub-Saharan Africa, including South Africa, according to media reports. 

According to media reports, Unilever said its decision to expand its agency partnerships aligns with its "Unilever growth action plan".

Photo courtesy Unilever Indonesia, Facebook

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