Procter & Gamble Co.’s premium skin-care business is suffering as Chinese consumers refrain from traveling to shop.
(Bloomberg) — Procter & Gamble Co.’s premium skin-care business is suffering as Chinese consumers refrain from traveling to shop.
China organic sales, which exclude currency fluctuations, rose 2% in the quarter ended in March from a year ago after Covid-19 lockdowns were lifted, Chief Financial Officer Andre Schulten said Friday on a call with analysts. But the company isn’t seeing “any return of Chinese consumers to travel retail,” he said.
“That is a significant negative for us in the SK-II business,” Schulten said, referring to a brand that sells luxury skin-care items such as a $170 face mask and a $75 cleansing oil.
SK-II had lower sales in the travel retail channel in the quarter, P&G said. Similarly, global luxury conglomerate LVMH is shifting resources out of Hong Kong, once Asia’s premium shopping hub, as mainland Chinese consumers switch to shopping at home.
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