Following the release of P&G’s first quarter results,
Jamie Mills, Senior Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:
“P&G’s 2019 first quarter results showcase overall net sales of $16.7 billion remaining in line with 2018 first quarter sales. The company’s beauty brands remain a strong driver of growth, however, positive organic sales growth across most of P&G’s segments bodes well for the year ahead.
“The company showed strong net sales growth in terms of its beauty offer – continuing to be driven by its premium skincare brands such as SK-II and Olay. This has been supported by ongoing innovation in key markets to strengthen the position of SK-II as a premium beauty offer as well as engaging consumers across the retail space. For example, the recent launch of SK-II’s Future X smart store in Shanghai provides a personalized and immersive experience by harnessing new technologies including artificial intelligence (AI). Such strategies all serve to grow the appeal of SK-II through targeting a millennial audience who are not only tech-savvy but are also seeking out more tailored beauty solutions and are often willing to pay a premium for them.
“Positive organic sales growth in P&G’s grooming sector is indicative of increased innovation and investment in this space. This effort continues to be ongoing with the company refreshing the positioning of its Gillette Venus brand through its ‘My Skin My Way’ campaign. Taking heed of the shift towards more inclusive positioning that embraces diversity – a trend which has been particularly prevalent across the skincare and make-up space over the last 12-18 months – the brand can broaden its appeal but also refresh its positioning in line with values that are growing in importance for today’s consumers when making their beauty and personal care product choices. As with its approach to its beauty portfolio, providing more personalized services and product experiences is a key focus for innovation within its razor offer.
“The company’s recent announcement of its pilot 3D printing programme to personalize its razor handles continues to emphasize P&G’s commitment to driving growth and engagement among its customers through a customized approach. Additionally, having recently received a steel tariff exemption in the US for its Gillette and Venus brands bodes well for this sector in the coming year.
“Price increases (announced in Q4 2018) within the fabric and home care sector appear to have paid off given the robust organic sales demonstrated in this space versus the previous year. However this success has yet to be replicated within the baby, feminine and family care space which experienced 3% net sales decline compared with the previous quarter. Nevertheless, ongoing innovation in this space could improve uptake of such products looking ahead.”
Notes to Editors
For more insights on the beauty and grooming market please see GlobalData’s reports:
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