Emerging and developing countries have become the main drivers of economic development today. In 2008, the growth regions of Eastern Europe, Asia (excluding Japan), the Middle East, Africa and Latin America already accounted for 37 percent of Henkel’s sales. We intend to increase this figure to 45 percent by 2012. Here in particular, the question of the social added value of products takes on greater significance. For us, products aligned to the needs of consumers in the lower income brackets not only have enormous economic potential but also make a positive social contribution in terms of, for example, domestic hygiene and therefore health. In order to do justice to the differing needs throughout the world, we pursue different strategies according to individual market situations:

• Globally uniform products: Wherever customers and consumers around the world have the same needs and expectations, we offer globally uniform products. Examples include the internationally identical demands made on an instant adhesive or on our industrial adhesives.
• Locally adapted product offerings: We adapt packaging units and distribution channels to local conditions, in order to make our products and our quality accessible to the broadest possible group of people. Customers from lower income segments for example purchase small units whenever they have some funds to spare. We consider this when planning packaging units and prices. For example, our dishwashing detergent Pril Liquid is available as a single-use pack in India. For 1 rupee – equivalent to 1.5 Euro cents – customers can buy a 6 milliliter pack of Pril “Lime and Vinegar”. In the South American markets we offer shampoos and deodorant creams in small sales units of 10 to 20 milliliters. Products that meet the needs of consumers in the lower income brackets not only have an enormous economic potential, but also make a positive social contribution in terms of, for example, domestic hygiene and health.
• Locally adapted product performance: Different regional circumstances may also require adjustments to our product formulations and performance. In North Africa and Latin America, for example, the scarcity of water necessitates careful use of this limited resource. Henkel has therefore developed and introduced a fabric softener with special ingredients that enables washing foam to be rinsed out very easily by hand. Other examples are our craftsmen and DIY products in Eastern Europe. Since the local building materials often differ from those in Western Europe, we offer locally adapted products such as the tile adhesive CM9 or the self-smoothing floor leveling compound Thomsit DA. Cultural differences are also taken into account during product development. In many North African countries and in India, there is a tradition of wearing white garments. Our laundry detergents Nadhif for the North African market and Mr. White for the Indian market therefore contain ingredients that give the laundry a radiant white appearance.

Emerging and developing countries, in particular, expect multinationals such as Henkel to contribute to their economic development, in addition to paying salaries and taxes. Through our production and administrative sites around the world, we stimulate the economic development at the local level. Through the transfer of knowledge and technologies, we encourage our employees and customers in all parts of the world to assume responsibility and act accordingly.

The central elements include modern management methods and the introduction of safe products and production processes. Besides regular training courses, we also organize targeted international job rotation programs. In 2008 alone, some 400 employees performed jobs outside their native country.

With regard to production, we have given high priority to a special training program on Safety, Health and Environment (SHE) Leadership since 2007. The program content ranges from risk assessment to emergency management and management systems. So far we have carried out eight three-day SHE Leadership seminars, which were attended by a total of more than 140 site and production managers from Asia, Africa, Europe, and the Americas. These seminars also promote an exchange of experience.

Another key factor for knowledge transfer is customer training. In Central and Eastern Europe, for example, Henkel Ceresit has already established 140 training centers for craftsmen. In cooperation with education ministries and state vocational schools, new quality standards are being developed step by step for vocational and advanced training. Since 1989, the international “Schwarzkopf Academy" similarly provides a training program for hairdressers. In 2008, more than 250,000 hairdressers were trained by the 34 Schwarzkopf Academies in cutting techniques, fashion advice, and management subjects. With this globally established system of knowledge transfer in the hairdressing sector, we contribute to the establishment of the first binding training standards for hairdressers in many countries, especially in Asia and South America.