Chinese spend more on diapers and Colgate despite economic woes
Chinese shoppers are spending a little more on diapers and some Colgate toothpastes, according to executives at the makers of these products, even as consumers fret about the country’s property crisis and faltering economy.
China’s economic slump after the pandemic has weighed on sales at consumer packaged goods companies, who had targeted the world’s secondbiggest economy as a major source of growth.
Investors and analysts are keeping close tabs on when the economy starts to signi cantly improve, which should be a boost for consumer makers.
Some consumer companies like Tide detergent maker Procter & Gamble, Reckitt and food producer PepsiCo are reporting some small signs of stronger spending in China. goods
“The Colgate business had a terri c quarter in China,” said CEO Noel Wallace, adding sales of the company’s premium products like whitening toothpaste are “robust.”
But Colgate’s overall sales volumes in China are still soft, mostly due to rural consumers cutting back, Mr. Wallace said.
“Clearly that consumer is a bit more challenged in China right now,” he said.
Reckitt has begun testing livestream shopping, or live video shopping, of Durex condoms in China. On Wednesday, in its conference call with investors, its CEO said Durex condoms in China are “really working very well for us,” thanks to new materials and other enhancements.
But both L’Oreal and P&G agged problems selling beauty products and cosmetics in China.
At PepsiCo, CEO Ramon Laguarta noted Chinese consumers are being “very cautious” and saving a lot.