SCA is one of the world’s largest companies in personal care products and has a portfolio of incontinence care, baby diapers and feminine care products. The products are sold through the retail trade, chemists and care institutions in more than 100 countries under leading global, regional and local brands. Innovation is a core element of strategy and is a prerequisite for strengthening SCA’s position in the global market.
Production and efficiency
At the end of the year, SCA had production at 29 plants in 24 countries. Products are distributed via the retail trade, chemists and care institutions in more than 100 countries. Production efficiency is consistently improved through the modernisation of and investment in new and existing facilities. As a result, these efforts enhance the cost structure and operational reliability.
In 2011, investments were made in local production of incontinence products in Russia. During the year, a restructuring programme in SCA’s baby diaper operations was implemented to strengthen the profitability and competitiveness. The restructuring programme resulted in concentration of the main production of baby diapers for the retail trade to the existing production plant in Olawa, Poland.
A new efficiency programme was started for the entire business area in 2011.
Innovation and product development
In 2011, SCA continued to develop new products at an increasingly rapid pace, advanced its positions in both mature and emerging markets and strengthened the global brand TENA as well as its regional and local brands.Innovation is a core element of strategy and a prerequisite for driving sales, increasing market shares, strengthening brands and building customer loyalty.
Innovation is based on customer and consumer insight and SCA invests substantial resources in deepening insight into consumer and customer needs. These insights comprise the foundation for SCA’s work with innovation and product development.
Sustainability aspects and product safety are important factors for SCA’s customers and consumers and, consequently, comprise two central drivers of SCA’s innovation efforts. Demand for these types of products and services increased in 2011.
Growth
Growth is a prioritised area in SCA’s strategy and though predominantly organic in existing and new segments is also achieved through acquisition. SCA’s target for the business area is annual organic growth of 5–7%. During the year, SCA completed a number of acquisitions in strategically important emerging markets.
Several factors indicate continued prospects for healthy growth for Personal Care, not least the emerging markets, where the increase in demand is driven by innovation, global population growth, an aging population and higher market penetration and increased disposable income.
