Hayat: Successful Growth Strategies

February 2018

With an average annual growth rate of 24% over 2011-2016, Hayat ranks as the fifth fastest growing retail tissue and hygiene manufacture in the world. The company has been successful in expanding into new markets with a strategy focused on balancing affordability with high quality products. This report highlights the strategies that Hayat has used for growth, in terms of pricing, production, distribution, and advertising, and why these strategies have been successful.

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Hayat is one of the fastest growing tissue and hygiene manufacturers

Hayat has seen growth soar in recent years, as it has entered several new markets in the high-growth MEA region. Most of Hayat’s fastest-growing markets have a significant amount of unmet potential due to large populations unable to afford many disposable tissue and hygiene products. If Hayat can continue to keep prices low, the company will see further significant growth in future.

Investing in local production has allowed Hayat to keep prices low

A key component in Hayat’s ability to maintain lower prices than most competitors is its investment in local production, particularly in developing countries, where political and economic instability create issues with imports and currency exchange. Hayat continues to invest in local production sites where it sees fit, with additional investments only once the company has established its brands and become familiar with local consumers.

Strong distribution network and partnerships while competitor shave struggled with supply chain logistics

Hayat has been successful in establishing wide distribution networks,reaching both urban and rural areas. As much of the unmet potential exists in rural areas, this has had a major impact on fuelling growth, especially while competitors have struggled to keep products in stock.

Shifting strategies once brand has been established to continue strong performance and maintain market leadership

Though Hayat usually enters a market with minimal expenditure on advertising and instead focuses on pricing strategies, the company does invest heavily in marketing once the brand has been established, particularly when competition heats up. As competitive pressures increase, Hayat may be forced to continue increasing its marketing expenditure in certain markets.

Key findings
Hayat is fifth-fastest growing in global retail tissue and hygiene sales
Growth in MEA and Eastern Europe
Targeting growth markets with significant unmet potential
Strategy: investment in local production
Strategy: balancing quality and affordability
Strategy: offering incentives and widening distribution
Strategy: expanding production and presence in tissue market
Strategy: minimal spend on advertising until brand is established
Future outlook

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