The region plays a big part in the overall P&G portfolio, with more than $5 billion of annual sales. But it is all about growth. It is a very young region, compared with the big global regions of North America and Europe.
the region needs to focus more on intraregion trade, between MENA states. Less than 10 percent of the total trade in the region is between states, compared with nearly 60 percent in the EU, for example,” Samir said.
One of the key executive decisions he has to make is where to source and manufacture products. The policy is to base manufacturing plants close to the big markets that they will serve, so there are significant manufacturing facilities in India, Egypt and Saudi Arabia.
In the Kingdom, P&G has manufactur- innovation center, he said.
And what are people in the region buying? “Our best-selling brand is Pampers and it’s a very important brand for us. There is a lot of potential in this region because many people still use old-fashioned disposable nappies. So we see plenty of upside in the market as people’s living standards rise and they move into cities. For example, we see more business in this sector in Nigeria than in the US and Europe combined,” the P&G top executive said.
Detergents and washing powders, part of the fabric and home care division, are the biggest-selling products worldwide. Personal care products are also big, both globally and in the region.
In fact, P&G brands read like an inventory of what is on every kitchen shelf and bathroom cabinet in the world — Ariel, Tide, Gillette, Always, Oral B, Braun, Tide, Mr. Clean.
The group’s corporate motto is: “The consumer is the boss,” but of course even a global giant like P&G must answer to a higher authority — the government of the country in which it operates, which sets the legal and business environment for its operations.
A lot of the talk at the Dead Sea was of the need for greater involvement by the private sector in the public commercial process, and Samir agrees.
“What is essential and what we need to discuss more both at the WEF and elsewhere is the role of government and business in this transformation. The public- private partnership is key,” he said.
The relationship with governments is obviously a key issue for Samir and other top-ranking P&G executives.
“The role of government in business is vital. The No. 1 requirement for a company like P&G is to have good regulation, allowing business to get on with the job and be done easily. The default position of government should be that citizens and consumers will behave in a good, positive way, without the need for too