Chinese spending on condoms, diapers, toothpaste despite slowdown
NEW YORK—Chinese shoppers are spending a little more on condoms and some 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 second-biggest economy as a major source of growth.
Investors and analysts are keeping close tabs on when the economy starts to significantly improve, which should be a boost for makers of consumer goods.
“The Colgate business had a terrific quarter in China,” said CEO Noel Wallace, adding that sales of the company’s premium products like whitening toothpaste are “robust.” About 14 percent of the company’s total sales came from its Asia Pacific region, which includes China, last year.
But Colgate’s overall sales volumes in China are still soft, mostly due to rural consumers cutting back, Wallace said.
“Clearly that consumer is a bit more challenged in China right now,” he said.
‘Working well’British consumer goods company Reckitt said its Durex condoms in China are “really working very well for us,” thanks to new materials and other enhancements.
Reckitt said it had begun testing livestream shopping, or live video shopping, of condoms in China.
Procter & Gamble chief financial officer Andre Schulten sales in China were down 3 percent in the quarter that ended March 31, but added that “We have pockets of strength.”
“P&G’s diaper and appliance business grew in the country,” he said.
Procter & Gamble, Reckitt and food producer PepsiCo are reporting some small signs of stronger spending in the country. —REUTERS
