P&G is ramping up its marketing efforts in China to revitalize its sales. The company is focusing on the popular Chinese shopping app, Douyin, to reach consumers who are increasingly shifting towards online shopping, per recent Reuters reporting.
P&G is hardly alone. In the past year, Coty, The Estee Lauder Companies and L’Oreal have all cited weakness in China in their quarterly and annual results.
Beyond its Douyin focus, P&G is also expanding its presence for Olay, Pantene, Head & Shoulders and Rejoice on other platforms like Xiaohongshu, a popular lifestyle app, to reach a wider audience. This move is crucial as Chinese consumers are becoming more selective and favoring domestic brands over international ones.
In its fiscal year ended in June, sales from China made up 7% of P&G's net sales, down from 10% of $80.2 billion in net sales in 2022. P&G's beauty business globally made up about 18% of its $84 billion in net sales in its fiscal year ended in June.
To boost sales, P&G is leveraging influencers and improving packaging for brands like Pantene. This strategy has yielded positive results, with Pantene experiencing growth in online sales.
The Cincinnati-based company's investments in better packaging for Pantene in China, and improved marketing on how much to use, has led to share growth online, the company's head of beauty, Alex Keith, said at an investor day.
Keith said, "We've grown online share for more than a year now and our portfolio is leading category growth on Douyin, the fastest growing online retailer in China.”
By adapting to the changing landscape of Chinese consumer behavior and embracing digital platforms, P&G wants to regain its market share and drive growth in this crucial market.
