RBGLY Reckitt Benckiser PLC (PK)

By Saabira Chaudhuri 

As head of the company that makes Lysol and other popular disinfectants, Laxman Narasimhan has a close-up view of how consumers around the planet are trying to protect themselves from the new coronavirus.

"As the pandemic goes on for a while, the real question is: Does it change people's behavior in the long run?" said the chief executive of Reckitt Benckiser Group PLC, whose products include cold brand Mucinex, Airborne vitamin supplements, Durex condoms, Enfamil infant formula and Dettol, one of the biggest antiseptic brands outside the U.S.

Mr. Narasimhan, who joined the British consumer-products giant last summer from PepsiCo, is betting it does. Before the outbreak, the 52-year-old executive crafted a strategy to reinvigorate Reckitt Benckiser's flagging sales, casting hygiene -- and many of the company's brands -- as a cornerstone of health. There is history there: The first Lysol-brand disinfectant was introduced in the late 1800s to help battle a cholera epidemic in Germany and was promoted as a countermeasure during the Spanish flu pandemic of 1918.

Now, even as the coronavirus pandemic disrupts his supply chains, Mr. Narasimhan expects it to accelerate that strategy, as Reckitt's Lysol cleaners and Dettol soap and sanitizers fly off shelves.

He recently spoke by phone to The Wall Street Journal from his living room in London, where he is on lockdown. Here are edited excerpts.

WSJ: What trends has the pandemic triggered that could stick around?

Mr. Narasimhan: E-commerce and digital will be even bigger. Supply can't keep up with demand right now, but we're seeing more older people using e-commerce.

There will also be a new depth to planning supply-chain resilience. And in some industries you'll see a shakeout where the companies that win are ones that understand consumers.

WSJ: How have you dealt with supply-chain disruptions?

Mr. Narasimhan: In China, we flew ingredients there that would typically have come on boats or trucks. If an ingredient we bought in China wasn't available because that factory was shut down, we imported it from Europe.

We put in place measures to ensure people were safe -- check, test, trace, isolate -- and we didn't have people infected. We increased the number of buses running to factories so there was social distancing on the bus. For some people we had to rent hotels in Hubei province due to travel restrictions. Now we're transporting these ideas and practices around the world to ensure we keep our people safe as this spreads.

WSJ: What about other big markets?

Mr. Narasimhan: We've been in close contact with our [retailer and wholesaler] customers in many countries who are narrowing product ranges to things that really sell. For Lysol, for instance, which is made in the U.S. and Mexico, you might need fewer fragrances and sizes. At our factories and distribution centers there, we're simplifying assortment. That helps us produce quicker since you don't have the downtime from switching lines.

WSJ: The French health minister recently tweeted that Ibuprofen -- which your brand Nurofen contains -- could make Covid-19 symptoms worse. How have you responded?

Mr. Narasimhan: Our medical team got together immediately. We said, "Where is the evidence?" From our perspective, which is shared by the WHO, there is no data we have seen that suggests that what was tweeted was based on facts. Other agencies have stepped in since. It's very hard for us, as a brand, to step in.

WSJ: Condom sales rose during the 2008-2009 recession. How have Durex sales been affected since the outbreak, given that this time people are stuck indoors?

Mr. Narasimhan: There are definitely fewer people buying that single-serve condom from a vending machine. Also, when people stop going to stores, or don't hang around a store, sales of the things I'd consider impulse categories go down. But we also sell direct to consumers online and are seeing more people using e-commerce to buy them.

WSJ: How do you go about leading a large, global company remotely, particularly when you're so new to the job?

Mr. Narasimhan: I'm seeing people all the time, just on screen. I was supposed to be in the Americas last week and we kept the meeting -- just did it virtually. You've got to be extremely organized about how you deal with a crisis. Every evening at 6 there's a core group of us who get on video to talk, and we have a dashboard -- a customized online platform -- to track key metrics like safety, people, performance, any emerging crises.

You also need to think about how you engage people. I took today off just to think. If you don't create time to think, all you're doing is responding.

WSJ: How's the adjustment been?

Mr. Narasimhan: In England, the home is a very private place, but now suddenly you're dialing into the home. We're trying to encourage people to turn their cameras on. I did a video for employees here in my living room where I showed them the room and photos of my family. I want people to feel their leader has no problem doing this.

My wife and kids are still in the U.S., but my 79-year-old mother lives here with me in West London. The other day she walked into one of my video meetings and said, "You haven't taken the garbage out." I had to stop the meeting and take care of it.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

April 06, 2020 07:40 ET (11:40 GMT)

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