Unilever's Strategies in China

Chiefly, the global processing center would bolster the presence of the world's leading consumer product manufacturer in China, an important and growing economy. But Unilever in China has, in the past, gone through periods of turmoil and turbulence.

Established in the country in 1920s, the company had to face the wrath of the Chinese Civil war and the subsequent Communist movement which supported the public ownership of all means of production.

When the market finally opened up after decades of closure to foreign companies, Unilever reestablished itself in China in 1986 through strategic tie-ups with local companies. 

In late 1990s and early 2000s, the company entered into a restructuring and consolidation mode to reorganize and strengthen its position in China.

The company management recognized the vast opportunities that the Chinese market offered, and adopted well-planned strategic means to exploit these to their fullest.

Among the steps the company took during its restructuring efforts were plans to get listed on the Chinese stock market, consolidation of its various units into one holding company, replacement of expatriates with local employees and localization of a number of products.