The world's largest household products manufacturer Procter & Gamble plans to move its skin care, cosmetics and personal-care units from its company headquarters in Cincinnati, Ohio, to Singapore over the next two years, with the goal of capturing business in emerging markets.
P&G is the latest in a number of European and American companies relocating to Asia to take advantage of the growing Asia-Pacific market. According to Euromonitor International, Asia-Pacific holds nearly half of the skin care market’s global value, which is at close to $97 billion.
The move will begin August 1 and will affect a few top executives, with no job cuts expected. “While only affecting fewer than 20 roles, this move will bring these businesses to the center of the greatest growth opportunity for these categories," P&G said in a statement.
By the end of 2012, P&G expects 37% of sales will come from emerging markets. The company’s Asian skin care brand, SK-II, currently has sales topping $1 billion.
The move is part of a restructuring plan P&G announced earlier this year that is aimed at saving $10 billion by 2017. The plan also includes cutting 5,700 jobs and expanding into other emerging markets.
President of the beauty units Virginia Drosos will retire at the start of September instead of uprooting her family, and will be replaced by Deborah Henretta, who is the current group president of the Asia division, in August. Henretta will be replaced by the current vice president of the Japan division Hasunori Kiriyama, who will become the first Asian to head the Asia division, which represents all of Asia expect for China.
P&G is best known for its Cover Girl makeup line, Olay skin cream and Secret deodorant brand.
Key Statistics - Personal Care Market in Singapore (source: MarketLine)
- In 2010, the personal hygiene market in Singapore generated revenue totaling nearly $112 million. For the time period 2006-2010, this represents a compound annual growth rate (CAGR) of nearly 4%.
- In 2010, in Singapore, the most lucrative segment of the personal hygiene market is bath and shower products. Sales totaled over $56 million, which is equivalent to 50% of the overall market value.
- For the five-year period 2010-2015, the market is predicted to decelerate. A CAGR of 3% is anticipated and by the end of 2015, when the market should be valued at $129 million.