Tag Archives | Procter & Gamble

Middle ground.png

Affordability now the key to future success

The ‘middle ground’ was the place to be to capture maximum profits during the Boomer-led SuperCycle between 1983-2007. But now, people have less money to spend, and credit conditions are tighter. So margins are disappearing as volumes come under pressure. Instead, as we discuss in Boom, Gloom and the New Normal, smart companies are realising […]

Continue Reading
Pur1.png

P&G’s ‘New Normal’ offer leads to record US sales week

Procter & Gamble (P&G) is the world’s largest consumer products company, with sales of $80bn. Its Pur water purification product highlights how Prof Michael Porter’s ‘Shared Value’ concept, highlighted in the blog in January, has the potential to unleash the next wave of global growth. Pur helps to reduce deaths from diarrhoea in developing countries. […]

Continue Reading
Pampers.png

Western retailing enters the New Normal

More evidence is emerging of the major changes taking place in Western retailing as we transition to the New Normal. Last week, my fellow blogger Doris de Guzman reported from the World Detergents conference that: • P&G’s CEO Robert McDonald noted that in “the last 18 months, 60% of all new laundry and detergent products […]

Continue Reading
$1 items.png

US consumers turn to Dollar stores

Major changes are taking place in US retailing. They echo the changing focus of emerging Asian markets. Taken together, these must have important implications for chemical demand. US retail markets have been evolving over the past 3 years, as the Crisis began to hit, and the baby-boomers moved beyond the peak 25 – 54 age […]

Continue Reading
US savings Aug10.png

Baby-Boomers cut spending, start saving

Consumer spending is 70% of US GDP. And because US GDP is so large, this means the US consumer is 17% of global GDP. This is the same as the combined GDP of China and Japan, who rank 2 and 3 after the USA. So a change in US consumer spending matters. And it particularly […]

Continue Reading
Forest.png

Brainstorming on biomass

The blog has come across a useful new tool for global brainstorming, run out of San Francisco by DiscoveryCast. They have recently organised a major event with Paris-based SpecialChem to review the current state of play in bio-based initiatives. This involved a group of 550 experts from 400 companies (including 3M, Dow, Michelin, DuPont, Arkema, […]

Continue Reading
McBride Jun10.png

McBride warns of “weak retail sales across Europe”

The blog is a great believer in the retail sector’s ability to help us forecast chemical industry trends. McBride is Europe’s leading ‘own brand’ in the household and personal sector. Its profit warning on Thursday of “weak retail sales across Europe“, therefore rings alarm bells. The sector is a large outlet for chemicals, and has […]

Continue Reading
tyres.jpg

Tyre duties highlight protectionist pressures

Globalisation flourished whilst economic growth was strong. Jobs lost in Western countries were replaced by new jobs. Whilst cheaper production offshore kept consumer prices low, as well as bringing more people into the world economy. But today’s economic downturn means this virtuous circle is turning vicious. Western countries are becoming more protectionist and hope to […]

Continue Reading
lipstick.jpg

L’Oreal goes Affordable

Further evidence of the trend towards a more frugal consumer comes from L’Oreal, the world’s largest cosmetics company. Like Procter & Gamble, it was slow to react to the trends identified by the major retail chains some 2 years ago. As a result, its profits fell 14% in H1, after decades of 10% annual increases. […]

Continue Reading
Tide Basic.jpg

Procter & Gamble goes Basic

As the downturn began In July 2007, leading retailers Tesco and Wal-Mart “signalled a major shift in consumer priorities“. And Tesco added a warning that “If you don’t have the basic things right, you will be talking at the edge rather than at the centre“. 2 years later Procter & Gamble, one of the world’s […]

Continue Reading