Henkel has revealed strategy to make investment in digital programs to enhance revenue growth in coming years.
Digitalization
The consumer product company believes that investment in digitalization will help Henkel to grow its business, strengthen the relationships with its customers and consumers, optimize its processes and transform the entire company.
Henkel in a statement said that it will implement long-term initiatives to drive its digital business, leverage industry 4.0 projects, and transform the organization by 2020. Henkel aims at doubling digitally-driven sales to more than 4 billion euros by 2020.
Henkel will increase its investments and raise capital expenditures (Capex) from around 2 billion euros in the period 2013 to 2016 up to 3 billion euros over the period 2017 to 2020. While Henkel aims to drive organic growth, acquisitions will be an integral part of the company’s strategy called Henkel 2020+ to further strengthen its portfolio.
“By 2020 and beyond, Henkel’s ambition is to generate more profitable growth and to become more customer-focused, more innovative, more agile, and fully digitized in our internal processes and customer-facing activities,” said Hans Van Bylen, chief executive officer of Henkel.
The consumer product manufacturing company will also launch targeted business initiatives to create superior customer and consumer engagement, further strengthen its leading brands and technologies, develop exciting innovations and services, and capture new sources of growth.
The company will set-up a dedicated Venture Capital Fund with up to 150 million euros to invest in start-ups with specific digital or technological expertise.
In addition, Henkel will implement new approaches to optimize resource allocation, focus on net revenue management, further increase efficiency in its structures, and continue to expand its Global Supply Chain organization. These initiatives will contribute to improve profitability and enable Henkel to fund its growth ambitions for 2020 and beyond.
