The Rising Influence of Rising Affluence

[DewDiligence]

More color on PG’s FY3Q12 results:

http://online.wsj.com/article/SB10001424052702304811304577369553120154614.html

P&G and other global consumer-products companies have been dealing with weak performance in developed [i.e. non-emerging] markets for some time, where many consumers haven't bounced back from the economic downturn. The rise in commodity costs over the past year has prompted P&G and its peers to raise prices in an environment that was not amenable to consumers paying more. In some cases, competitors held off on price increases while P&G moved its prices higher.

It is reversing course in some categories, either by outright lowering prices or increasing promotions. The categories include the powdered laundry business in the U.S., plus oral care, automatic dishwashing detergent, and blades and razors in North America. P&G is also lowering prices on its laundry businesses in the U.K. and Mexico.