PZ Cussons East Africa managing director for Kenya, East Africa and Ghana, Sekar Ramamoorthy. /HANDOUT
Well, when you are 8ft 11’ tall, you can spend a fortune on soap. Legend also has it that ‘Imperial Leather lasts longer than some Nairobi relationships’, a humorous and popular internet meme that jokes about the exceptional durability of the sticker on an Imperial Leather soap.
Imperial was one of the first brands to invest in TV advertising, in between episodes of popular drama in the 1950s. It was this investment that led to the coining of the phrase ‘Soaps’ in relation to TV shows.
The brand found its way into Kenya in the 1960s, first in pharmacies before entering the retail market. Direct manufacturing in Kenya started in the 80s after Cussons bought a Kisumu-based manufacturer, which was at the time called Baby Soap Company.
The factory was later relocated to Ruaraka, Nairobi, where the soap is manufactured to date by PZ Cussons East Africa. Cussons has since diversified to become one of the leading Fast Moving Consumer Goods manufacturers in Kenya and the region
. Last week, it announced a major strategic shift in its regional business approach, doubling down on its investment in production, distribution, innovation and placing greater emphasis on the younger Generation Z and Millennials aged below 35. Factors driving this redirection include changing market tastes, channel redesign and portfolio refocusing, requiring company investment totalling Sh150 million over the next one year.
The Star spoke to PZ Cussons East Africa managing director for Kenya, East Africa and Ghana, Sekar Ramamoorthy, on the company’s journey, operations in the wake of rapid evolution in consumer behaviour and future prospects in Kenya’s beauty and personal-care market, which is estimated at Sh20 billion.
How long have you been with PS Cussons E.A and how has the company’s journey in Kenya and the region been?
I have been with the Group for the last 25 years in various parts of Africa and Asia. PZ Cussons is a 140-year-old company in existence. We are celebrating more than 65 years in Kenya, and this company has many legacy brands. One such brand is the famous Imperial Leatherwhich has a history of more than 250 years and continues to grow from strength to strength. From a humble beginning in Kenya, we have grown multiple-fold. Today, we are proud to say we have more than one million consumers in East Africa.
They say Imperial Leather and its sticker last longer than some relationships. What is your secret ingredient?
The iconic Imperial Leather soap was handcrafted by an artist to make the soap unique and he did three things. He made a chisel soap with a central point to have a sticker which in those days used to be metal so that it can stick to a magnet. Many companies in the world have tried the sticker but have not succeeded.
It is a very unique sticker made with special ink coming from the US, even today, after 100 year,s the sticker is made in a specialised factory. The formula is unique and well-protected that nobody can replicate it. The soap is also made in its own special way a craft that has been perfected over the years.
How would you describe Cussons’ current market position in Kenya’s personal and home care segments?
Kenya continues to be a very important market for us, even as we continue to diversify our products and at the same time retain our signature products. We hold number one and number two position in almost all the products we have in the market.
We target to be number one across the personal and home care segment in the next three years, not only in Kenya, but East Africa. We have strategically positioned ourselves to tap the Millennials, Gen Zs and then Alpha Generations and of cours,e the Baby boomers.
We have products for everyone. We used to sell only one red soap but we have evolved and expanded the offerings. Today, we are proud to say that we are market leaders in many categories of Sabuni (soap).
We now have 18 varieties. Don’t forget that we are the market leaders in shower gels in the UK and we will make it even stronger in the East African market. We have also expanded into lotions and now slowly perfumes and body mist and more to come in skincare products. We are committed to growing this market and beyond, all the way to Ghana and other markets we are in.
Do you get counterfeited and are you worried?
Counterfeiting is an issue in every part of developing markets. Even in UK. But there are certain unique features of our products which cannot be counterfeited easily.
The sticker in the centre of Imperial Leather, the iconic sticker, cannot be easily replaced by anybody. Number two, we work closely with the regulators to make sure counterfeits don’t happen, and counterfeit happens when you are not in control of your brand and its destiny and the regulatory framework. But it is not a major concern for us.
How would you define the country’s tax environment?
For beauty products, it is fair. The government removed the 15 per cent excise duty on beauty products, making them affordable.
The talk of the town is that you have been reviewing your business strategy and could be laying off and leaving the Kenyan market. What is the exact position?
We are not going anywhere, especially for the Imperial Leather brand. We have actually launched a new line of products and are investing about Sh150 million over the next year.
This is to meet the changing market tastes, channel redesign, and portfolio refocusing. This clearly says that we are committed to grow this market. We are also expanding to West Africa and remain committed to all the markets we have presence in the region.
What are some of the major challenges in the Fast-Moving Consumer Goods market?
The challenge in East Africa, more so in Kenya, has been reduced spending power among consumers in the last three years. The buying power has widely reduced. PZ Cussons adapted to this reality, including packaging our products into smaller options which are affordable. Today, we have more than 20,000 consumers in Kibra.
You must be ready to adapt to any changes in the market of you are to continue growing your brand.
What is your take on digital evolution, AI and how are you adopting?
The digital evolution is changing the way consumers buy and use products. We are investing heavily in digital marketing and working with partners, especially in distribution, to meet the changing dynamics. We are also investing in Artificial Intelligence tools to create content which is relevant but we will not leave the human element to be overtaken by AI because consumer understanding cannot be fully understood by AI at the moment. We fully-fledged research and development unit to serve our markets.
How do you balance volume growth with profitability in a price-sensitive market like Kenya?
We bring innovation to make affordable products and keep increasing the valuation of the brands, at the same time, we continue to derive volume growth by penetrating the right value proposition for the consumers.
How has the global supply chain disruption affected your operations in Kenya?
We have not been affected that much because, fortunately, we have a good supplier ecosystem. We work with more than 20 partners in Kenya, and they all have local manufacturing capabilities and packaging. But yes, we have had some few challenges on importation, but we work closely with shipping lines, which has helped us plan well on cargo movement. Cussons manufactures 99.9 per cent of the East African market products in Kenya, from a previous 70 to 75 per cent. What we import is raw material.
Are you seeing any shifts towards natural or organic personal care products?
Definitely, there is a perception of natural ingredients. In our latest Imperial Leather products, we have used the best of jojoba oil, jasmine fragrance oil and macadamia oil or cocoa butter, shea butter oil. We use many natural ingredients to align with the needs of the perception of the consumers when they are shifting towards natural products.
Are you worried about cheaper imports mainly from China?
No, because Kenya has good barriers and regulatory systems to make sure quality products are sold in the market. We don’t face too much of challenges in this area. Kenya has one of the most evolved regulatory mechanisms for the FMCG industry. They continue to evolve and they are fast in adoption and they are so supportive of local manufacturers to innovate. Kenya Bureau of Standards is well placed to drive this industry to the next level of evolution of standards.
Where do you see Cussons next five years?
We plan to double the business in less than five years and become the top player in beauty and personal care products.
INSTANT ANALYSIS
The value of the soap market in Kenya is estimated at $189 million in 2025, with a projected annual growth rate of 9.45 per cent for the period of 2025-2030. This growth is driven by increasing demand for convenience foods and specialised products like bone broth, with the market expected to reach a volume of 40.1 million kg by 2030. The market is seeing a rise in demand for health-focused soups, such as bone broth, particularly among younger demographics.
