GROWTH IS

PERSONAL IN A
DIGITAL WORLD
Disruption in
the consumer
products industry

When it really matters.

 CONSUMER PRODUCTS

In brief

DISRUPTION THEMES
– Long reliant on strong brands and relationships with retailers, consumer
products (CP) companies are looking for ways to reignite growth.

– Trust in specific brands that demonstrate authenticity, purpose, and shared

values is replacing blind faith in the general goodness of brands.

– Health and wellness considerations represent an increasingly important shift

in consumer preferences.

– Many of the trends are more strongly expressed by younger generations—

especially in Europe and the United States. Wage stagnation among the middle
class and rising inequality also increase demand for more value-conscious
products.

– Digital connectivity and commerce are redefining how consumers buy and
from whom they buy, with profound implications for operating models and
marketing strategies.

IMPLICATIONS
Successful consumer products companies are taking a
multifaceted approach to the management of disruption:

– Proactively and clearly identify the values their companies and their products
will represent to the end consumer.

– Evaluate and optimize their product portfolios to support the identified values.

– Acquire smaller, consumer-engaged brands—which remains a smart strategy

for larger companies—but over-integration of such brands may cause
companies to lose their authenticity and their edge.

– Reduce operational complexity and realign structures to allow faster market

responses and support strategies.

– Turbocharge innovation processes to adapt to new market requirements.

– Accelerate digital transformation in order to position themselves for growth in

e-commerce and digital marketing.

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Disruption in the consumer

products industry
In recent years, consumer products companies have struggled to continue
delivering the growth in both revenues and earnings they have historically
enjoyed. Those companies have traditionally relied on a combination of strong
brands, retail relationships, and investment in developing economies to power
their financial performance. But that formula no longer results in the reliable
growth it once did.

During the past 10 years, despite record economic expansion around the world,
earnings growth at CP companies slowed to 1.7% per year compared with 3.4%
for the global economy. Efforts to improve returns through cost management
are not only useful but necessary and can be significant sources of funding for
investments in growth. However, on their own, cost reductions are not sufficient
to drive growth and value over the long term.

PUBLIC CONSUMER PRODUCTS COMPANY GROWTH OVER TIME:

REVENUE AND EBIT

4%

3%

2%

1%

0%

–1%

–2%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Note: Year-over-year growth is based on last 12 months ending in

September of that year.
Revenue growth
Source: Data aggregated from 12,000 public consumer goods
EBIT growth companies worldwide via S&P Capital IQ

What is it that is affecting growth in this industry—particularly at the largest,

most-established companies? And how can those companies best respond?

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Three disruptive factors

To guide companies during this time of tremendous industry change, we
identified three macro themes that are driving disruption in the consumer
products industry.

1. RISE OF THE SELF-CENTRIC CONSUMER

Now more than ever, consumers are demanding what they want, when they want
it, and how they want it. Near-constant connectivity is driving awareness and
the availability of an infinite shelf of options, while accelerating logistics models
satisfy needs with ever-increasing convenience and speed. All of that has served
to promote the rise of the self-centric consumer, who is able to buy products that
more perfectly meet needs in each moment.

For CP companies, these developments make for both an opportunity and

a challenge. New technologies and new behaviors enable the companies to
develop direct and dynamic relationships with their customers in unprecedented
ways.

But consumer expectations, too, are unprecedented. Untethered from geography,

today’s empowered and networked consumers are increasingly demanding
customized yet seamless and convenient experiences that cater to their evolving
expectations. They want pricing transparency across all potential channels,
and they’re increasingly expecting more and more personalized and intimate
engagement with the brands they purchase.

This digital connectivity between consumers and between consumers and

companies has (1) facilitated the conversion of traditional patterns of interaction
into digital form, whose patterns are reconstructing at accelerating rates, and (2)
redefined how parties interact and transact. Social marketing, for example, has
changed how consumers discover and learn about products and services and is
forcing companies to radically rethink how they interact with consumers and the
role of the brand.

E-commerce has changed how consumers buy. The first e-commerce waves
appeared years ago, when retailers took their offerings online; and new digital
retail business models such as Amazon, Boxed, and Alibaba emerged that are
central parts of today’s CP landscape.

Nowadays, digital commerce is actually transforming whom consumers are

buying from. That transformation is occurring across multiple channels—
including direct-to-consumer business models—and is both affecting established
CP companies and enabling new entrants.

The new patterns of engagement are also giving rise to new digital routes
to market. Companies are being forced to rethink the assets they own, the
infrastructure required, and who owns the consumer relationship.

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Take, for example, Schick razors and its new-entrant competitor Harry’s. Harry’s
launched as a low-cost, direct-to-consumer shaving brand in 2013, taking
advantage of its rapid online growth to expand into traditional retail by offering
its products at Target and Walmart. The company was expected to earn $200
million in revenue in 2019.1 Edgewell Personal Care, the maker of Schick razors,
had agreed to an acquisition of Harry’s in 2019 but was blocked in these efforts
by the Federal Trade Commission (FTC) on anti-competition grounds. In its
lawsuit, the FTC stated, “The loss of Harry’s as an independent competitor
would remove a critical disruptive rival that has driven down prices and spurred
innovation in an industry that was previously dominated by two main suppliers,
one of whom is the acquirer.”

Digital and physical commerce are converging, and based on our analysis,
companies that are furthest advanced on the digital journey see the convergence
largely as already having happened.2

However, despite that fact, many companies still lack focus on digital as a key
component of their strategy. We analyzed the earnings calls of the 125 largest
public CP companies globally for the four months leading up to May 17, 2019,
and found that 33% had made no reference to digital commerce or strategy in
their calls with investors.3

2. G
 ROWING IMPORTANCE OF AUTHENTICITY,
PURPOSE, AND SHARED VALUES

In an era offering seemingly infinite choices, powered by near-constant

connectivity and information availability, choice can become overwhelming. The
question, Which products and brands can I trust? is a powerful lens through
which consumers bring clarity to a universe of options. Consumers are more and
more placing their trust in brands that demonstrate authenticity, purpose, and
shared values that align with their own.

Saying the right things is not enough. To today’s discerning consumers,

authenticity is demonstrated not just through what is said but also through the
actions behind the words. Consumers are increasingly evaluating not just a
product but also how the product is being marketed, produced, and sourced and
whether those activities align with the company’s stated values and their own.

Several new entrants have been successfully engaging with consumers when it
comes to values. For example, Goop, Lush, and Tata Harper in the beauty and
personal care space and Honest Company in the baby products space have
grown quickly through a singular focus on natural and organic products that
resonate with their target consumers.

Across the market at large, there has been tremendous growth in products
making values-based claims such as sustainability and traceability.
According to NYU Stern’s Center for Sustainable Business, 50% of growth
in consumer-packaged goods in the United States from 2013 to 2018 came
from sustainability-marketed products.4 Anglo-Dutch conglomerate Unilever
announced in 2018 that its most-sustainable brands grew 46% faster than the
rest of the business and delivered 70% of the company’s sales growth.5

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Correspondingly, companies that find themselves wrong-footed in those

matters can find themselves facing serious public relations crises that directly
affect revenues—negatively. In what’s been dubbed the “Blue Planet” effect,
many consumer products companies and retail companies in the United
Kingdom began struggling to respond to vocal consumer concerns over
product packaging after BBC’s 2017 broadcast of nature documentary Blue
Planet II, which detailed the consequences of plastic waste for sea life and the
environment.

As early adopters of new technology, these points of view are expressed most
strongly by younger generations of consumers, who are causing demographic
differences in consumption patterns. Millennials, for example, are radically
reshaping the beauty and personal care industry and demanding authenticity by
shunning traditional labels in favor of independent brands, thereby driving the
brands’ rapid growth.

PRODUCT LOYALTY, BY GENERATION

"Which of the following statements comes closest to your view, even if
neither is exactly right?"

When I find a product I like, I tend to buy it repeatedly.

I like to try out different products, even when I know the ones I like.

75%
66% 67%
59%
49% 51%
41%
34% 33%
25%

All adults Gen Z (18–­21) Millennials (22–37) Gen Xers (38–53) Boomers (54–72)

Based on a survey of 2,202 US adults.

Published on MarketingCharts.com in
October 2018.
Data source: Morning Consult

Those premium products, of which consumers have expectations when it comes

to authenticity, purpose, and shared values, are also becoming increasingly
bifurcated from more-commoditized products and services, where there is
a push toward value. For cost-conscious consumers, brands become less
important, and nonbranded or private-label goods are gaining in prominence.

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3. EXPANDING BOUNDARIES OF THE WELLNESS LIFESTYLE

Among all of those values, healthier lifestyles have become increasingly

important parts of consumer preferences. Dietary habits are changing. Eating
well is becoming seen as living well. And the boundaries of wellness are
expanding. Consumers are placing more importance on exercise, mindfulness,
sleep quality, stress management, and other dimensions of wellness—and a
multitude of apps, wearables, and other enablers are helping consumers make
those choices parts of their daily life.

There is still a gap between aspirations for wellness and actual purchasing
behavior, but the gap appears to be narrowing. In our 2018 Global Health and
Wellness Survey, more than half of respondents said that living a healthy lifestyle
had become more important to them during the previous year, with healthy
eating reported as the most important aspect of that lifestyle. Fully 76% of
respondents reported consistently purchasing healthy food and beverages for
themselves or their household in the past year.

And in certain sectors, companies are finding themselves displaced by

competitors offering so-called better-for-you products. In our analysis of
companies this year, manufacturers of processed meats, dairy products, and
frozen foods were among the worst performers.

EVOLVING CONSUMER PREFERENCES

A fourth-quartile performer in our analysis of Dean’s revenue in 2016, according to the
this year, Dean Foods, America’s largest milk company’s annual report. The figure fell to
producer, filed on November 12, 2019, for 15.3% in 2018 after Walmart’s opening of its
bankruptcy protection. Financial performance own milk-processing plant.
at the company had struggled in recent years
because milk consumption in the United States In a struggling industry, some innovations
is falling, whereas demand for organic-milk and are defying the odds. Fairlife, a brand of
alternative-milk options is on the rise. Sales ultrafiltered, higher-protein, and lower-lactose
of nondairy milks grew 23% in the past four milk, is distributed in the United States and
years.6 Dean was unable to take advantage of Canada by the Coca-Cola Company. The brand
the trend after the 2012 divestiture of its Silk grew its sales 42% in the first quarter of 2019
and Horizon Organic brands. compared with the previous year, according to
Food Navigator.
The emergence of private-label offerings
that cater to price-conscious consumers Even in this mature market, responding
was another factor affecting the company’s effectively to changing consumer demands can
performance. Walmart accounted for 17.5% help establish a strong growth trajectory.

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TOP AREAS OF IMPORTANCE TO 19- TO 34-YEAR-OLDS

WHEN PURCHASING HEALTHY
% Consumers indicating product attribute is highly important
when purchasing healthy

100%

90%
% Consumers indicating high importance

80%
70%
70% 66% 65% 63% 62%
59% 58%
60%

50%

40%

30%

20%

10%

0%
Allergen-Free All natural or "Free from" Certified Sustainable Minimally Detailed and
"pronounceable" organic source processed transparent
ingredients labeling

Source: AlixPartners Health and Wellness Study, 2018

Implications for companies

Disruption has affected all aspects of the consumer products sector. CP
companies’ brands and their relationships with retail stores have been
fundamentally altered by the advent of new technologies, new brands, and
new consumer preferences and behaviors. Consumers—especially younger
generations of consumers—are searching for authenticity and values they share
with companies in order to filter the overload of choice and as a means of self-
expression.

In response, consumer products companies should focus on four areas of

development during this period of unprecedented change.

1. C
 LEARLY DEFINE THE VALUES YOUR BRAND AND
COMPANY REPRESENT

The rise of the self-centric consumer makes it increasingly difficult for brands
to be all things to all people. For many types of products, targeted segments are
getting smaller and smaller, giving rise to smaller and more-focused brands that
resonate with target consumers.

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Moreover, the growing importance of authenticity, purpose, and shared values

has raised the bar when it comes to how companies and brands connect with
their target markets. Targeting the right market and building a product with
competitive functionality and a strong value proposition are tenets that remain
foundational to success. The biggest winners, however, will be those that do so
while also connecting with their targets in authentic ways and through shared
values.

Companies should be deliberate in deciding where they stand and how they want
to be positioned. And they should be committed to acting consistently with those
values in order to demonstrate authenticity. Values should not be generic or
universal, such as “motherhood and apple pie.” Instead, they should be specific
and sources of differentiation that can serve to help the company position itself
for participation in market growth trends.

For example, health and wellness is an area of accelerating growth across

many subsectors of consumer products. In addition, wage stagnation among
the middle class in much of the developed world is causing many consumers
to try to find ways of making their paychecks stretch further. Products that
respond to the needs of those cost-conscious buyers also show promising
growth prospects. Data analytics can provide new insights into which categories
of products offer the most promise and which may be most vulnerable to new
technologies and consumer trends. Those trends and many others can usually
be integrated into an authentic set of values that both enable the company to
connect with its target consumers in authentic ways and position the company
favorably so as to attract sources of market growth.

2. M
 ARKETING BECOMES EVEN MORE IMPORTANT, BUT
INVESTMENTS MUST BE TARGETED AND MEASURABLE

Large, well-funded brands used to be uniquely positioned to access marketwide

media channels to transmit their messages. But as niche brands proliferate
and digital communication becomes democratized, companies must engage
with consumers more intentionally. In addition, the value of mass messages
resonates less in an era in which consumers are in search of products and
experiences that uniquely reflect themselves.

In the new environment, the use of digital channels and social media to stay on
message and connect in authentic ways with consumers around core shared
values is critical to success. Social media channels are increasingly becoming
means for two-way dialogues. And for certain types of brands, consumers see
that as a crucial element of the brand experience.

Beauty and personal care products are at the leading edge in using celebrity and
social media to build new brands and connect with consumers. Rihanna’s Fenty
Beauty brand, which she launched in 2017, sold almost $600 million of products
in its first 15 months. Kylie Cosmetics, a start-up founded by Kylie Jenner, was
valued at $1.2 billion when cosmetics giant Coty purchased a controlling stake in
2019.

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Apparel companies, too, are proving adept at using social media to build
authenticity and consumer connections. Nike launched its Breaking2 project
in 2016 to break the two-hour barrier for the marathon and used Facebook and
Twitter to engage in real time with running fans around the world. The company’s
Zoom Superfly Elite shoes helped Eliud Kipchoge beat the two-hour barrier
in 2019, though the results were not recognized as a record based on World
Athletics standards.

To be profitable, marketing must be targeted, tailored, and measured to the

needs of self-centric consumers. Indeed, while digital channels are growing and
currently getting much of the focus, depending on the nature of the brand and
the customer, traditional marketing remains an important medium; and linear
television continues to have the widest audience—particularly among older
consumers, who have the most disposable income.

BUILDING AUTHENTIC AND DIRECT RELATIONSHIPS

In 2017, Nike launched a new strategy called Nike has also invested in technology and
Consumer Direct Offense, which focused on analytics through acquisitions of smaller
direct-to-consumer sales to drive growth in firms that excel in predictive analytics to
the upcoming decade.8 The strategy signaled create new products, forecast demand,
a significant step toward building more- and identify the best marketing techniques
meaningful and more-direct relationships with to reach their targeted consumers. Nike’s
consumers in a highly fragmented market. analytics start-up acquisitions in this space
include Celect, a predictive-analytics firm, and
Having ended its retail partnership with Zodiac, a consumer data analytics company.
Amazon, Nike is opening more brick-and- The company’s stock has risen more than
mortar outlets and is investing in its online 73% since announcement of the strategy
presence to expand its direct-to-consumer on the back of impressive earnings, and the
business. That helps control customer company’s revenues rose to $10.7 billion in the
experiences, tailor them to individual needs, first quarter of 2019, with digital sales up some
and create brand loyalty in a market that has 42%.9
seen increasing competition.

But much of all marketing dollars is wasted. We estimate that about half, or
$50 billion, of digital marketing and trade spend by CP companies globally is
ineffective.7 Despite the promise of greater measurability and engagement,
many companies continue to be frustrated by their inability to track and measure
outcomes given more-complicated marketing models and distribution channels.
Penetrating so-called dark social applications, like WhatsApp, remains a
major hurdle for digital marketers. And new privacy regulations and consumer
expectations increasingly challenge companies to extract value from personal
data for digital marketing purposes.

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As paths to purchase become increasingly fragmented and nonlinear, it is now

more critical to focus efforts on digital marketing. Our research shows that
as the proportion of a firm’s marketing dollars spent on digital increases, the
efficacy of the marketing increases. There is a learning curve involved, though,
and it takes time to get a return on the investment.

3. O
 PTIMIZE YOUR PORTFOLIO TO SUPPORT
YOUR CHOSEN DIRECTION

Companies must adjust lines of business and brands to optimize their portfolios.
New tactics must be enlisted as markets shift. And companies should explicitly
(1) consider bold moves like acquisitions or joint ventures to accelerate and de-
risk moves or (2) devise new revenue models like services and subscriptions.

Similarly, the divestiture of underperforming businesses—even of once-cherished

brands—that no longer offer sufficient value potential can generate meaningful
value and provide strategic focus. For example, in 2018, Nestlé sold its US
confectionery business, which included such iconic brands as Butterfinger and
SweeTARTS, to Ferraro for $2.8 billion. Nestlé followed that in 2019 with the sale
of its US ice cream business, including the Häagen-Dazs brand, to Froneri in a
deal valued at $4 billion.

INCREASING DIGITAL PENETRATION

Increases across all CP sectors illuminate success
in innovative go-to-market strategies

21% 20.1% $ Sales that have

Digital penetration by sector, global Product
migrated online
20% 18.4% type
since 2010
19%
17.2%
18%
17% 15.5% 15.9%
16% Household
14.1% $378.4 BN
15% 13.5% Durables
14%
12.3%
13% 11.4%
12% 10.5%
Apparel
11% 9.7%
and $310.2 BN
10% Accessories
7.9% 8.5% 8.9%
9%
7.7%
8% 6.4% 6.9% 6.9%
7% 5.9% 6.0% Health,
6% 5.0% Homecare,
5.0% $71.7 BN
5% 4.3% 4.3% and
3.7% Beauty
4% 3.1% 3.1%
3% 2.7% 2.6%
2.3%
1.6% 1.9%
2% 1.1% 1.3% Food,
0.9% 1.0%
1% Beverage,
$79.1 BN
and
0% Tabacco
2010 2011 2012 2013 2014 2015 2016 2017 2018

Sources: Euromonitor international, AlixPartners analysis

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Royal Phillips, founded in 1891 as a maker of lightbulbs, divested itself of that

business, together with its television and entertainment businesses, in recent
years and has announced its intention to sell its consumer electronics brands in
order to focus on products for the healthcare sector.

Knowing which category and channel shifts are happening, acting honestly and
realistically about those facts, and then shifting meaningfully in response are
crucial for success.

For those areas that are growing fastest, it’s increasingly important that
companies pivot their strategies to take advantage of that growth, which
sometimes means abandoning traditional approaches and redefining the roles
that the various brands or businesses play in the company portfolio. For some
categories and products, decline is inevitable. The answer is not, necessarily, to
exit those businesses, because in many cases, the free cash flow from them can
fund investment in new growth areas.

A CONSOLIDATION STRATEGY FOR SUCCESS

L’Oréal has used acquisitions of multiple small about buying smaller brands and taking
brands with loyal customer bases to sustain its advantage of its global reach and economies
leadership in the highly competitive beauty and of scale to build those brands. But brand
personal care industry.10 In the past five years, identity and the consumer experience are
the company has acquired younger brands kept independent. Acquired by L’Oréal in 2000,
such as Urban Decay, NYX, and IT Cosmetics11 Kiehl’s is a good example of that by having
and has grown revenue during the same period maintained its authentic and independent edge
by 8% to $31 billion.12 despite tremendous growth.

Lower barriers to entry have facilitated the By its acquisition of ModiFace, an artificial
proliferation of start-ups in the beauty and intelligence start-up used by companies such
personal care space. There are 2,722 beauty as Sephora to provide customers a virtual trial
start-ups on angel-funded websites; the firms room, L’Oréal is also using technology to offer
have an average valuation of $3.8 million.13 more-customized shopping experiences.15 This
L’Oréal has many options, as a result, from has helped the company provide a seamless
which to identify well-built brands with a loyal online experience for any brand it owns, thereby
customer base that it can add to its portfolio. creating a new, direct-to-consumer channel of
sales.16
L’Oréal’s acquisitions span the globe; the firm
has acquired brands in Asia and is building L’Oréal is an example of an established leader
a broader portfolio to cater to a wider set of that is using technology and building a portfolio
consumers.14 The company has been vocal of brands to maintain growth and profits.

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And as more and more sales move online, companies must make difficult
decisions about sacrificing margins for growth, but given overall trends for most
product categories, the choice may prove ephemeral. Ultimately, consumers are
moving more and more of their purchasing to digital channels, and therefore,
choosing not to meet them there may prove short-sighted.

Established companies continue taking advantage of M&A to secure growth

at escalating multiples. Although deal volumes are down from a peak in 2014,
acquisition strategy remains a critical path for many of the CP companies
navigating through this disruptive environment.

CUMULATIVE M&A TRANSACTION VALUE BY SECTOR, GLOBAL

400 393

350

300
US$ Bn Spent on M&A per year

250 234
214
218

200
167 170
156 152 173

150

96
100

50

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(YTD)

Food, Beverage, and Tobacco Home Durables Packaging

Health, Home, and Beauty Apparel

For both acquired and new start-up products, companies must maintain a
balance between synergies and the need to sustain the consumer-facing identity
of the target. General Mills, for example, has made great efforts to maintain
the brand identity of Annie’s Homegrown—which manufactures natural and
organic packaged food—following the acquisition of Annie’s in 2014. Campbell’s
has done the same with its acquisition of Late July Organic Snacks. Allowing
the acquired brands and companies to continue acting consistently with their
stated values is important for maintaining connection and trust with their target
markets.

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4. START NOW AND ADAPT ALONG THE WAY

The sheer scale of business transformation can be daunting. Companies should

not overjudge their capacities to change. They should pick key deliverables
that can be implemented within six months. They should consider incubating
new businesses that could be disruptive without having to disrupt their core
businesses. And they should be willing to learn as they go rather than wait for
the perfect answer.

The positive momentum resulting from early wins can lead to further progress,
including cultural acceptance of variously dramatic strategic and operational
shifts. Approaching a necessary transformation with an agile mind-set is also
critical because the initial strategy and implementation road map may change
over time.

New technologies, which, too, are elements driving disruption, can offer answers
to the problem of transformation at speed by facilitating greater agility, leading
to higher connectivity, and by generating deeper insights by means of data and
analytics. Accelerating digital transformation efforts, therefore, drives business
transformation.

Whatever the strategic direction, maintaining

cost discipline is critical for all companies,
which must get themselves fighting fit in their
otherwise disrupted businesses in order to
fund the future.

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Notes
1. Bernhard Warner, “Why This Shaving Startup Made a $100 Million
Gamble on a 100-Year-Old Factory.” Inc., May 2016; https://www.inc.com/
magazine/201605/bernhard-warner/harrys-razors-german-factory.html.
2. AlixPartners Global Digital Transformation Study, 2019.
3. “ E-commerce: Are consumer products companies leaving money on the
table?” AlixPartners, April 2019.
4. S
 tern CSB Sustainable Share Index: Research Overview, March 11, 2019;
https://www.stern.nyu.edu/sites/default/files/assets/documents/NYU%20
Stern%20CSB%20Sustainable%20Share%20Index%E2%84%A2%202019.pdf.
5. U
 nilever press release, Unilever’s Sustainable Living Plan Continues to
Fuel Growth, October 5, 2018; https://www.unilever.com/news/press-
releases/2018/unilevers-sustainable-living-plan-continues-to-fuel-growth.
html.
6. A melia Lucas, “Dean Foods, America’s Biggest Milk Producer, Files for
Bankruptcy,” CNBC, November 12, 2019;
https://www.cnbc.com/2019/11/12/dean-foods-americas-biggest-milk-
producer-files-for-bankruptcy.html.
7. A
 lixPartners Global Digital Transformation Study, 2019.
8. " NIKE, Inc. Announces New Consumer Direct Offense: A Faster Pipeline to
Serve Consumers Personally, at Scale.” NIKE News, June 15, 2017; https://
news.nike.com/news/nike-consumer-direct-offense.
9. Hilary George-Parkin, “How Nike’s Direct-to-Consumer Plan Is Crushing the
Competition.” FN, September 25, 2019; https://footwearnews.com/2019/
business/opinion-analysis/nike-dtc-competition-adidas-under-armour-digital-
sales-1202845517/.
10. L’Oréal 2018 Annual Report; https://www.loreal-finance.com/en/annual-
report-2018/acquisitions-2-4/.
11. E
 rin Griffith, “L’Oréal’s Beauty Secret: Buying Other Brands.” Fortune, March
12. “ Why Has Estee Lauder’s Revenue Grown 3x More Than That of L’Oréal over
the Past 5 Years?” Forbes, October 30, 2019; https://www.forbes.com/sites/
greatspeculations/2019/10/30/why-has-estee-lauders-revenue-grown-3x-
more-than-that-of-loreal-over-the-past-5-years/#22b32c002b3a.
13. A
 ngelList, Beauty Startups; https://angel.co/beauty.
14. Suneera Tandon, “L’Oréal Eyeing Acquisitions in India’s Cosmetics Market.”
LiveMint, April 9, 2019; https://www.livemint.com/companies/news/l-or-al-
eyeing-acquisitions-in-india-s-cosmetics-market-1554762765084.html.
15. Janna Mandell, “L’Oréal Says ‘In Your Face’ to Competition with Strategic
Acquisition.” Forbes, March 16, 2018; https://www.forbes.com/sites/
jannamandell/2018/03/16/loreal-says-in-your-face-to-competition-with-
strategic-ai-and-ar-acquisition-modiface/#7b9e27831f38.
16. L
 ucy Handley, “The World’s Largest Beauty Company Sees China as
Its Digital ‘Laboratory.’” CNBC, September 3, 2019; https://www.cnbc.
com/2019/09/03/how-loreal-uses-china-as-a-place-to-learn-about-digital-
marketing.html.

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About us
For nearly forty years, AlixPartners has helped businesses around the world
respond quickly and decisively to their most critical challenges–circumstances
as diverse as urgent performance improvement, accelerated transformation,
complex restructuring, and risk mitigation.

These are the moments when everything is on the line: a sudden shift in the
market, an unexpected performance decline, a time-sensitive deal, a fork-in-the-
road decision. But it’s not what we do that makes a difference; it’s how we do it.

Tackling situations when time is of the essence is part of our DNA, so we take
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with specific industry and functional expertise, and we operate at pace, moving
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clients until the job is done and only measure our success in terms of the results
we deliver.

Our approach enables us to help our clients confront and overcome truly
future-defining challenges. We partner with you to make the right decisions
and take the right actions. And we are right by your side. When it really matters.

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