PROCTER & GAMBLE
Boosts Sales with Influencers on Douyin in China
Procter & Gamble (P&G) has been revamping its marketing and lineup of influencers on fast-growing Chinese shopping app Douyin in recent months, helping its Pantene shampoo lead growth in hair care on the platform.
The Cincinnati-based company’s investments in better packaging for Pantene in China, and improved marketing on how much to use, has led to share growth online, the company’s head of beauty, Alex Keith, said at an investor day.
"We’ve grown online share for more than a year now and our portfolio is leading category growth on Douyin, the fastest growing online retailer in China," Keith said. P&G’s beauty business globally made up about 18 per cent of its $84 billion in net sales in its fiscal year ended in June.
Influencers on Douyin
Influencers on Douyin like Ni Bi Yi, a young mom, and Chou Dan, known for her jokes, tout Pantene’s jasmine fragrance and ability to repair their hair, according to posts on the China-based sister app of TikTok.
Stoking Sales in China’s Sputtering Economy
P&G is looking for ways to stoke sales in China’s sputtering economy, where its revenue was down 15 per cent in the quarter ended on September 30, 2024, dragging on the entire company. Even as P&G sees positive trends in haircare on Douyin, the higher-end categories the company competes in overall in China are down due to low consumer confidence, Keith said on Thursday (November 21).
Rebuilding Sales
To rebuild sales, the company is offering more of its haircare and beauty brands on Douyin, and other fast-growing e-commerce platforms, P&G executives told Asian investors in August, according to a research note from the bank.
Building Brand Houses on Douyin
It is also building brand houses on Douyin, like its page for skincare brand Olay, and putting influencers on its payroll, according to the JP Morgan note.
Shopping via Livestream
Chinese consumers are more frequently shopping on the app, which offers livestreamed videos, and are abandoning the brick-and-mortar stores where P&G built up its presence over decades, seeking to become essential in China’s growing middle class.
Conclusions
P&G is revamping its marketing and lineup of influencers on Douyin to boost sales in China, a key market for the company. The company is investing in better packaging and marketing, and is building brand houses on the platform. P&G is also putting influencers on its payroll and is selling its products on other fast-growing e-commerce platforms.
Frequently Asked Questions
Q: What is P&G’s strategy for China?
A: P&G is focusing on building brand houses on Douyin, putting influencers on its payroll, and selling its products on other fast-growing e-commerce platforms.
Q: How is P&G performing in China?
A: P&G’s revenue in China was down 15 per cent in the quarter ended on September 30, 2024, but the company sees positive trends in haircare on Douyin.
Q: What is Douyin?
A: Douyin is a fast-growing Chinese shopping app that offers livestreamed videos and is popular with young consumers.
