The Rising Influence of Rising Affluence

[DewDiligence]

PG aimed too low with Pampers in China:

http://www.wsj.com/articles/p-g-tripped-up-by-its-assumptions-about-diapers-in-china-1439445897

Procter & Gamble…recently rolled out a line of premium diapers in China with a prominent new claim: “Made in Japan.”

The new Pampers with elastic waistbands and gold designs are the company’s latest attempt to catch a wave of demand for high-end consumables in China. So far, P&G is playing catch up. The consumer-goods giant may own the high-end diaper market in the U.S., but well-heeled Chinese parents in recent years have been gravitating to imported Japanese brands at the expense of Pampers, which have long been made locally to keep their costs down.

…The company’s pivot upward highlights a surprising development in one of the world’s most important markets: China’s consumers are proving increasingly willing to splurge—not just on $700 smartphones, but also on little luxuries like better diapers for their children.