P&G working to consolidate market position
By Liu Jie (China Daily)
Updated: 2005-03-29 14:14

The world's leading consumer products maker P&G is striving to further consolidate its co-operation with retailers in a bid to both further cement its position and promote corporate philanthropy in China.

"Though P&G has achieved great progress in China, an extremely new market for us compared with US and European markets, we can still go further and faster considering the huge market potential and speedy economic development here," said Christopher Hassall, general manager of External Relations, P&G Greater China, during an interview last week.

P&G has established factories and subsidiaries in Guangzhou, Beijing, Chengdu and Tianjin with a total investment in excess of US$1 billion since entering the country in 1988.

The firm is responsible for bringing to China such well-known brands as Crest, Rejoice, Head & Shoulders, Pantene Pro-V, Clairol, Vidal Sassoon, Safeguard, Oil of Olay, Zest, Whisper, Pampers, Ariel and Tide.

Kevin Edwards, general manager of Customer Business Development, P&G Greater China, attributed P&G's success partly to its sound co-operation with retailers.

According to Li Fei, professor with School of Economics & Management attached to Tsinghua University, P&G was the first manufacturing enterprise to set up an Efficient Consumer Response (ECR) system in China.

"Amid a batch of disputes and conflicts between commodity providers and supermarkets in China, P&G is running smoothly and harmoniously with various retailing companies, due to the establishment of such a mechanism, which manages the goods supply and co-ordinates relations with retailers directly," said Li.

On the foundations of a sound business relationship with domestic partners, P&G has been able to advance its social causes.

The giant consumer product maker became involved in the Hope School Project in 1996. When a consumer buys a P&G product from an approved supermarket, 0.1 yuan (1.2 US cents) is donated to the programme designed to get children in poverty-stricken areas back into the classroom.

On March 21, P&G donated 4 million yuan (US$481,000) to the Hope School Project, taking the company's total contribution to this government-backed project to 20 million yuan (US$2.41 million).

"The money we donate this time will mainly be used to improve the conditions at the 100 existing P&G Hope Schools across China, as well as build five more Hope Schools together with CenturyMart, CR Vanguard, and Suguo," said Edwards.

As supporters of P&G's charity programme, supermarkets are now starting to get involved in the project. "We will work towards bringing more retailers into the Hope School Project," said Hassall.

P&G also recently launched its new global platform for corporate philanthropy in China aimed at helping needy children around the world.

With the theme of "Live, Learn and Thrive," P&G's new platform of corporate social responsibility focuses on helping children up to the age of 13.

The company will provide basic necessities such as safe water, a sound learning environment, and help them to thrive through programmes that develop self-esteem and essential life skills.

But some insiders have suggested that P&G's charity work is an effort to improve its image in China as the company faces a lawsuit accusing it of false advertising.

P&G currently employs about 100,000 people in over 80 countries and regions around the world.

Last year, it donated US$103 million to charities worldwide, and its global sales volume surpassed US$51.4 billion in the 2003-2004 fiscal year.

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