Business Intelligence on Retailing, Franchising, and Consumerism in China

P&G Has Second Round Of China Price Increases

After raising the prices of Pantene and Crest, Proctor and Gamble recently started the second round price increase of its many brands, including Whisper and Pampers — with prices up by 10% to 15%.

Zhang Qunxiang, a spokesman for P&G China, said that the prices of raw materials have increased by 150% to 160% over the last two years, but they only raised prices by less than 10%. Therefore, the possibility for a third round price rises cannot be excluded.

Zhang added that the second round price increase is focused on mother and baby supplies and the reason is because of the price increase of raw materials. The major raw materials for sanitary napkins and diapers are water absorbent material and pulp, the prices of which have increased by more than 50% over the last year.

At the same time, Unilever, a major competitor of P&G, has also raised the prices of Lux shampoo and soap by 6%, OMO washing powder by 10% to 12%, and Zhonghua toothpaste by 20%.

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