CINCINNATI—In response for the growing demand of beauty products in Asia, Procter & Gamble (P&G) moved its Cincinnati personal care unit to Singapore. In recent months the P&G said that it's focused on its faster-growing emerging markets, such as India and China, where the company boasts double-digit growth. Last month P&G cut its full-year profit forecast against a backdrop of “decelerating" growth in the United States.
The Asian beauty market expansion is driven by economic growth in countries such as China, which has lead to a rise in disposable incomes and appeal for premium brands. For instance, China, India, Malaysia, Japan and Korea experienced a rising demand for personal care products, from skin-whitening creams to razor blades.
The move comes less than three months after P&G announced a restructuring plan aimed at cutting $10 billion in costs in response to market demands to drive its performance. The maker of Olay make-up, Pampers nappies and Gillette razors announced it would cut 5,700 jobs by the end of 2016.
“We have been working for some time on a plan to relocate the leadership team for our skincare, cosmetics and personal care businesses to Singapore. Asia has seen the strongest and most robust growth of any global market and continues to demonstrate that, with many countries in the region exhibiting double-digit growth in the categories where we compete," said a group spokesperson.
P&G’s Asian beauty and grooming business has grown by 12 percent, while the hair care brands Pantene and Head and Shoulders and the SK-II skincare line have annual sales of more than $1 billion in Asia alone, he said.
