BRIC Business News | Proctor & Gamble Looking to BRICs for Growth

BRIC Business

BRIC markets are the future for western retailers and product developers, and that's no different for giant Proctor & Gamble.

Procter & Gamble is seeing flat growth in the developed markets and is counting on Russia and other emerging markets to lead the recovery in consumer demand, its chief operating officer said on Friday.

"What we see is a dampening of demand there (in developed markets), basically flat market growth," COO Robert McDonald told Reuters financial television at Russia's Economic Forum in St Petersburg.

"(Emerging markets) is where the growth is. As we look back to the year 2000, only about 20 percent of our business was in these markets. Now its 30 (percent), more than 30. We're counting on Russia," he said.

He mentioned in particular Brazil, India and China, which together with Russia make up the so-called BRIC economies. "We are counting on Russia, one of our top five countries."

The maker of Gillette razors and Tide laundry detergent, which has seen some of its brands lose market share as recession-hit consumers trade down to cheaper or private-label brands, said last month it planned to accelerate its spending on new plants and new products.

"The demand is slowing. We clearly see that, but that is no reason to pull back on the investments. We are continuing to invest because we know that demand will return," he said.

He's definitely right, and that demand will surge when the global economy turns around, and those in the emerging middle classes in the BRIC countries hunger for quality goods and services.

BRIC Business