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P&G To Freeze Further Expansion in Emerging Markets

Posted: May 24, 2012

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P&G had focused on boosting U.S. and European sales with new products and "all but forfeited many developing markets to its competitors," undertaking only selective efforts in markets such as China and Eastern Europe. McDonald had made clear that the company could no longer cede territory to rivals (developing markets now make up about 37% of P&G's total sales, up from 20% in 2000).

P&G's sales are growing faster in emerging markets, but those sales are generally less profitable than those in developed markets due to consumers' greater price sensitivity and high level of competition. P&G still expects either high-single or low double-digit growth from its emerging markets businesses, offsetting weakness in developed markets.

On May 11, 2012, GCI reported that P&G is moving its beauty business headquarters to Singapore to be closer to the Asian market.