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P&G Raises Prices In China

August 21, 2008

Pampers and Whisper products to jump as much as 10%.

Leading consumer product maker Procter & Gamble will raise prices for its products by as much as 10% in China, Zhang Qunxiang, spokesman for P&G China, said. As a result of soaring raw material costs, the company will raise the prices of Pampers disposable diapers and Whisper sanitary napkins from the end of July, the spokesman said.

Water absorbent material and pulp, the main substances needed for diaper and sanitary napkins, increased by 50% in the past year, according to statistics. Mr. Zhang said that the price increase was part of the company's strategy, previously announced to boost global prices by up to 16% in the middle of July.

Based on an earlier announcement, retailers would pay P&G 2-16% more for fabric, home and hair care, bar soaps, and health and shaving products from September, P&G spokesman Paul Fox said previously.

Mr. Zhang said that the company has not seen a decline in sales so far and did not rule out further increases in product prices. He said that the company would keep a close watch on changes in the prices of petroleum derivatives and domestic materials, and adjust product prices accordingly.

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