P&G bets on China: US giant acknowledges that its growth rests on Chinese consumers
As global consumer demand stumbles and economic forecasts are littered with caveats, US giant Procter & Gamble has named China its main lifeline. In an era when geopolitical risks are forcing many corporations to rethink global supply chains, business pragmatism speaks louder than political slogans. P&G, whose shampoos, detergents and diapers are familiar to everyone, does not just sell products in China – it learns from the Chinese consumer, trusts him and invests in him. And judging by the latest figures, this partnership is delivering the kind of returns that are sorely lacking in other markets.
On Tuesday, the company posted its fourth-quarter fiscal 2026 results: net revenue reached $21.2 billion, up 2% year-on-year. For the full fiscal year, revenue rose to $87 billion – a 3% annual increase. Organic sales growth in Greater China for the full year came in at 4%, outperforming the company's global average. P&G also noted that its market share in China is recovering – a key signal for investors.
"This is effectively our second-largest market in the world, and it is very, very important to our success. So I view China not just as strategic, but as critical to our long-term growth," said Freddy Bharucha, CEO of P&G's global cosmetics division.
But it is not just about sales. The Beijing Innovation Centre is now P&G's largest R&D hub in Asia and the second largest worldwide. And 95% of products sold in China are developed locally, specifically for local consumers. "The Chinese consumer is one of the most demanding in the world. He has very high expectations of performance, science, quality. Over the past 10 to 15 years, we have increasingly concentrated our technology and our technologists in China to meet changing consumer needs. And it is from China that we take the best innovations and roll them out globally," Bharucha said.
Industry experts note that multinational corporations are shifting strategy. They used to simply ship goods to China. Now they conduct research, create products and take them to global markets. A vast consumer base, full production chains and a growing innovation ecosystem are turning China not just into a key market, but into a vital node in the global innovation network.
The numbers speak for themselves: according to China's Ministry of Commerce, the number of newly established foreign-invested enterprises in China rose 5.3% year-on-year in the first half of the year, with nearly 4,800 foreign firms injecting additional capital into their operations in China.
As CCTV+ reports, while some politicians in the West are calling for "decoupling" from China, big business is voting with its wallet – and choosing to stay and grow here, because the Chinese market continues to feed, inspire and deliver profits.
