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P&G tried to offset years of sharp price increases by offering discounts and promotions. However, this strategy failed to convince consumers who remained price-conscious. The company's more expensive products, such as Charmin toilet paper and Pampers diapers, saw a decline in demand.
Rivals like Nestlé and
P&G is not the only one struggling. Rivals such as Nestlé and
New products to entice budget-conscious shoppers
P&G has invested heavily in new products, such as tile Tide Evo laundry detergent and Luvs Platinum Protection diapers, which offer cheaper and more environmentally friendly options. However, supply problems have delayed the launch of the new Luvs, causing sales to fall.
The company's main diaper business saw a decline due to the loss of market share to competitors. P&G increased promotions and offered discounts, which resulted in lower prices for some products and took a toll on organic sales of its largest division, textiles and home care.
Leadership remains optimistic
Despite the disappointing results, P&G executives remain optimistic about the company's future. CEO
The company reported a 1 percent increase in total volumes, driven by growth in its personal care products and health division. Net sales fell to
Challenges abound
P&G also faces challenges in
The company also sees continued boycotts of Western brands in the
P&G's CEO expressed confidence that the company will continue to grow, citing opportunities in the nursing and health divisions. Adjusted earnings of
Key takeaways
- P&G reported a surprise revenue decline in the fourth quarter despite efforts to rein in price increases.
- Rivals such as Nestle and
- The company's higher-priced products saw a drop in demand as consumers remained price-conscious.
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