Kimberly-Clark Corporation has announced its next phase of transformation, including a new operating model and key commercial initiatives. The company aims to grow its brands and businesses at a faster pace than its categories.
The company is building on its consumer centricity and commercial advantages by moving to a more agile and focused operating structure. This move is expected to accelerate the company’s proprietary pipeline of innovation in right-to-win spaces and improve growth trajectory, profitability, and returns on investment.
Kimberly-Clark has over 150 years of history, transforming groundbreaking insights into innovative categories, and is excited to build on that legacy for consistent, long-term value creation.
The company will focus on driving a step-change in performance by sharpening its strategic focus through a new operating model that leverages three synergistic forces:
Accelerating Pioneering Innovation to capture significant growth available in its categories by investing in science and technology to satisfy unmet and evolving consumer needs. Kimberly-Clark will focus on growing 12 powerhouse brands that have #1 or strong #2 positions and drive more than 80% of
the company’s net sales in five, global daily-need spaces with a total addressable market of approximately $240 billion: Baby & Child Care, Feminine Care, Adult Care, Family Care, and Professional.
Optimizing its Margin Structure to deliver superior consumer propositions at every rung of the pricevalue ladder. The company will implement initiatives and deploy technology and data analytics designed to create a fast, adaptable, integrated supply chain with greater visibility that can deliver continuous
improvement. The planned supply chain modernization is expected to generate more than $3 billion in gross productivity and $500 million in working capital savings that will be used to help fuel growth investments.
Wiring its Organization for Growth to drive agility, speed, and focused execution that extends the company’s competitive advantages further into the future. In the coming months, the company plans to reorganize its operations into three business segments.
Kimberly-Clark is prioritizing sustainability in its innovation pipeline, aiming to deliver products with enhanced consumer benefits while reducing material usage. The company has explored alternative fiber options and invested in sustainable products over the past decade. Kimberly-Clark is now setting a new goal to be 100% Natural Forest Free across its product portfolio, with the goal expected to be halfway achieved by 2030.
