Japan-based Giant Will Eventually Be The Last Price Increase Consumers Pay - Procter & Gamble,

Procter & Gamble and other giants in the sound of a price increase

, consumers expect prices only sigh: people Daozu, I fish. Our choice is not much, in addition to money or, what do?

Recent days of heavy industry, big news is the acquisition of Johnson Bao settled. This was challenged as "National Day of brand annihilated" message, for all attention, so that at the Exhibition Center of Johnson completed the Beijing Olympics opening ceremony, Johnson acquired a large treasure of things to be reporters repeatedly pressed, the host may not does not appear discouraged.

23 billion, or 300 million U.S. dollars, it may be pretty on the people is a huge figure, but Johnson, the root is a vegetable - just empty you smoke, to the Beijing Olympic Park to see Johnson's exhibition center will be able to understand: Johnson & Johnson spent huge amounts of money, from Shaanxi moved the basic integrity of the Terracotta Warriors 5, moved from the South 4000 Anji bamboo green. In addition, during the Olympics, Johnson & Johnson 7,000 employees will be invited to participate in and watch the Beijing Olympics. So regardless of cost, strong enough to show a strong entrepreneurial spirit born in China, right?

Also has a strong entrepreneurial spirit is another day of giant Procter & Gamble: It is neither illegal nor in the media and the public turns to raise prices, or even suspected of being likely to touch "anti-monopoly law."

"We can make rash challenge but not confirmed." Vice president of the Central University of Finance and Law Li Xuan in an interview that the nature of P & G price rises difficult to define, it is possible only because of the cost of materials increases upstream the normal result of price increases, but it also may involve an agreement to monopolize in violation of "anti-monopoly law," Article VII of the price agreement. P & G soon

given insisted that the P & G price increase was mainly due to rapid increases in the cost of the reasons, does not involve other factors.

But also to the counter market, market participants said: Procter & Gamble in this round of global raw material prices have not damaged the process. As of April 30, 2008 Procter & Gamble reported a third quarter fiscal year: Sales up 8% year over year, net income rose 12%; the last fiscal year, sales rose 12%, net income rose 19 range %; the above two indicators of fiscal 2006 were 20% and 25%.

Financial data can be seen from the last 3 years, Procter & Gamble net gain has been higher than sales gains. In 2007,2008, and the two fiscal years, Procter & Gamble net income rises relative to the rate of increase in the proportion of sales for fiscal 2006 were higher than those. In other words, P & G last two years, profitability has not declined, but on the rise.

Although the industry is a full day of competition in the industry, but according to the data, P & G's market share currently occupied half of the country. Meanwhile, the completion of the integration of Gillette will treasure and Crest Oral further into the 23 market and a series of big moves, the P & G oral care industry, increase market share.

The person that, in fact, just like Procter & Gamble profit through price increases to ensure rapid growth. But the day of

said to have been a very huge profits: the End of the World community had friends reprint, inside the top ten lucrative industry, daily chemical industry front ranks. User Zeng Yi toothpaste with an example in which the most expensive component - the cost of blowing agent is only 600 yuan / ton or less, and that a full 600 of the foaming agent to fill the maximum number of 180 6000 grams of toothpaste. The remaining cost effective components is negligible, and the amount of calcium carbonate powder costs only 120 yuan per ton is about the highest level of fluoride toothpaste to its active ingredient - but the cost per ton of sodium monofluorophosphate 100. China-made low-end products for the time being is not, even with silicon abrasive Crest, 180 g loaded toothpaste market retail price of 13 yuan, 6000 to sell 78,000 yuan, the cost of raw materials with low sharp contrast.

That profits are gone then? Analysts pointed out that almost all spent on advertising, and it has been jokingly consumers with advertising in the brush, just look over the big TV screen, beautiful image of the P & G spokesperson will understand.

by: gaga

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