Henkel Consumer Brands, a division of Germany's Henkel Group, will sharpen its focus on artificial intelligence, consumer-led innovation and remain open to acquisitions that fit its strategy in China as it prepares a five-year strategy to capture opportunities in the country's evolving beauty and personal care market.
The company, with a portfolio spanning brands such as Vidal Sassoon, Schwarzkopf and Persil, plans to unveil the roadmap by the end of this year, taking a cue from China's approach to long-term economic planning.
Speaking at the company's booth during the 9th edition of the China International Import Expo in Shanghai, where Henkel is participating for the 8th consecutive year, Patrick Zhong, vice-president of Henkel Consumer Brands Greater China, said the company would maintain its strategic direction while adapting to increasingly sophisticated Chinese consumers.
"China's five-year plans have demonstrated the value of maintaining a consistent strategic direction," Zhong said, noting that the brand's own roadmap would reflect a similar commitment to long-term development.
With Henkel marking 55 years in China, its consumer brands division has expanded its portfolio through acquisitions, including Shiseido's Asia-Pacific professional hair business in 2022 and Vidal Sassoon's Greater China business in 2024.
Zhong said further deals remained possible, although acquiring production capacity was no longer a priority in a market already rich in manufacturing capabilities.
Instead, the company would seek opportunities offering stronger technological expertise and deeper consumer insights.
China's role is also changing from a manufacturing base into a source of innovation for international markets, he said, citing opportunities to export technologies, products, supply chain expertise and AI applications.
Eager to accelerate product innovation and respond more swiftly to changing consumer preferences across the region, Henkel Consumer Brands opened its largest consumer brands research and development center in Asia in Shanghai in 2024, backed by an investment of 100 million yuan ($15 million).
Zhong said Chinese consumers are becoming more discerning, prioritizing product effectiveness, quality and personal satisfaction as they increasingly make beauty choices based on their own needs and preferences.
As Chinese consumers increasingly turn to AI-powered search for product recommendations, Zhong said businesses can harness the technology to better understand consumer preferences, anticipate emerging demand and provide more accurate product information.
Nie Pingxiang, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said China's shifting consumer preferences and fast-evolving innovation ecosystem are encouraging multinational companies to invest more in local research, digital technologies and product development, turning China into a global innovation hub.
More than 6,300 foreign-invested enterprises increased their investment in China in the first three quarters, data from the Ministry of Commerce showed.
