As US slows, P&G turns to developing markets |
| Wall Street Journal - Jan 27, 2012 |
Emerging markets are playing a bigger role in Procter & Gamble Co.'s growth, in another sign that U.S. companies are courting new customers overseas as American shoppers get tapped out.
The maker of Tide laundry detergent, Crest toothpaste and Pampers diapers said Friday that its market value grew 9 percent in developing countries over the latest quarter, but just 2 percent in North America and 0.5 percent in Western Europe. That news came as P&G reported a 49 percent drop in profit for the second fiscal quarter, hobbled by higher costs for materials and a big write-down on the value of two of its business units.
Developing markets like Africa and parts of Latin America and Asia now make up almost 37 percent of P&G's sales, up from 27 percent five years ago. That growth was buoyed by recent expansions like toothpaste offerings in Nigeria and fabric softener in Indonesia. In the same period, the share of sales that P&G makes in the U.S. dropped to 37 percent from 43 percent.
Read Full Article from Wall Street Journal
- Posted: 2012-01-27 12:30:59
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