Procter & Gamble (P&G) has decided to end its local operations in China and move to an import-based model. The change affects several P&G products, including Always, Pampers, Ariel, Oral B and Gillette, CFO Andre Schulten announced at the Morgan Stanley Global Consumer & Retail Conference.
P&G’s move comes in response to the difficulties of operating as a dollar-denominated business in Nigeria’s challenging economic environment. Although Nigeria contributes $50 million to P&G’s $85 billion portfolio, the company has faced ongoing challenges in the country, including the planned closure of a major manufacturing plant in 2018 and a significant workforce reduction in 2021.
Nigeria’s economic environment in 2023 has been challenging for businesses, with policy reforms such as the removal of fuel subsidies and currency fluctuations increasing operating costs. This environment has led several multinational companies, including Unilever Nigeria, GlaxoSmithKline UK, and Guinness Nigeria Plc, to restructure their operations, exit certain markets, or stop importing certain products to address the challenges of foreign exchange shortages and price instability.
