Executives at the companies that produce these goods claim that despite customer concerns over the nation’s failing economy and real estate crisis, Chinese consumers are spending somewhat more on diapers and select Colgate toothpastes.

Consumer packaged goods firms have seen a decline in sales as a result of China’s economic downturn following the epidemic, despite their initial focus on the country as a significant development engine.

When the economy starts to considerably improve, investors and experts will be closely monitoring the situation, which should be excellent news for consumer goods manufacturers.

Certain consumer brands, such as Procter & Gamble, which makes Tide detergent, Reckitt, which makes Dettol cleaning products, and PepsiCo, which makes food, are indicating a little increase in expenditure in China.

CEO Noel Wallace stated, “The Colgate business had a terrific quarter in China,” and noted that sales of the company’s high-end goods, such as whitening toothpaste, are “robust.” China is part of the Asia Pacific area, which accounts for around 14% of the company’s overall revenues last year.

However, Wallace said that Colgate’s total sales volumes in China are still low, mostly as a result of rural consumers making savings cuts.

“Clearly that consumer is a bit more challenged in China right now,” he stated.

In the long run, Wallace added, the company’s toothpaste under the Darlie brand is well-positioned to capture market share among Chinese consumers living in rural areas.

In China, Reckitt has started experimenting with livestreaming, or live video purchasing, for Durex condoms. Thanks to new materials and other improvements, Durex condoms in China are “really working very well for us,” the company’s CEO stated on a conference call with investors on Wednesday.

However, P&G and L’Oreal also noted issues with the sale of cosmetics and beauty items in China.

The CEO of L’Oreal expressed caution on April 18 regarding China, the second-largest beauty market in the world, saying that the company is preparing for a “China that is not doing fantastic.”

In a call with the media on April 19, P&G Chief Financial Officer Andre Schulten stated that while sales of the company’s upscale Japanese skincare brand, SK-II, were down 30% in the previous quarter, Chinese consumers’ perceptions of the brand are improving. After the US, China is P&G’s second-largest market.

He added that the business will concentrate its marketing efforts on SK-II’s anti-aging promises, saying, “We reached the bottom of the trend and see sentiment improving.” According to P&G, the leak of wastewater from the Fukushima nuclear facility in Japan in August caused Chinese consumers to reject the brand, which negatively impacted the company’s overall financial results.

But even without SK-II sales, P&G’s sales in China decreased by 3% for the quarter that concluded on March 31, according to Schulten. “We have pockets of strength,” Schulten stated, noting that P&G’s appliance and diaper businesses expanded throughout the nation.

Chinese customers are “very cautious” and frugal, according to CEO Ramon Laguarta of PepsiCo, which is building facilities in China and Vietnam.

(Adapted from TheStandard.com.hk)

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