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Procter and Gamble Moves Cosmetics/Beauty Unit from OH to Singapore

edited May 2012 in Off-Topic
http://www.reuters.com/article/2012/05/10/procter-beauty-idUSL1E8GA7A920120510

" Procter & Gamble Co will move its skin care, cosmetics and personal-care headquarters from Ohio to Singapore to be closer to the growing Asian market."

Heavily discussed this afternoon on CNBS. Pretty startling move by a classic American brand.

Comments

  • edited May 2012
    And Singapore is a very business-friendly environment too.

    It's the new global reality and that situation could hit any one of us one day too (with our employer).
  • edited May 2012
    Many multinational (large & small) companies are watching their revenues in Asia grow much more quickly than in the USA and Europe, so this move doesn't surprise me. Asia had its financial crisis in 1997 while the USA and Europe are still mired in a banking crisis (JP Morgan anyone?). I think that more and more companies will focus their product development, marketing and sales activities on Asia because that's where the action's at. Can't argue with the numbers, so follow the money trail to Asia. P&G, Coke, Pepsi, Yum, Apple, Ford, luxury goods makers and countless other companies are already well-established throughout the region.

    Check out Prada's Hong Kong listed shares (1913:hk).
  • beebee
    edited May 2012
    To All,

    How can our government successfully conduct financial repression when corporations can just pack a bag and fly off to profits and customer centered economies...yet,not so easy for individuals to take their chips and leave the table. Americans are choosing to stop being American...Jim Rogers finally has an audience.

    Growing Number of Wealthy Americans Renounce Citizenship
    http://prudentinvestornewsletters.blogspot.com/2012/05/growing-number-of-wealthy-americans.html

    Fund Managers have to deal with FATCA:
    http://www.economist.com/node/21540270
  • edited May 2012
    Reply to @bee:

    Facebook co-founder who renounced his citizenship to avoid taxes as he collects his huge bounty after IPO.

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/05/11/BU0R1OGS6M.DTL

    The problem is that the rich does not have any national identity or patriotism.
  • Reply to @PopTart: I think it's not surprising from the standpoint of Asian growth - I definitely think the EM consumer is a specific theme that plays out quite well (with some bumps along the road) over the next 3-5 years, and you're seeing rising wages in China. Howard Schultz talked on Bloomberg the other day about how the customer base in Starbucks stores is changing. Schultz said about a year and a half ago, there was a turning point where the company's customers in China started to noticeably change where core customers have have gone from tourists and expats to more towards local Chinese that are starting to be able to afford to go to Starbucks more often.

    Prada is HK-listed (although there is an ADR that barely trades) and, a smaller example, L'Occitane is also HP-listed. There are a few other luxury examples I'm forgetting.

    I guess it's just a sign of the times, but a pretty classic US name making the move - literally moving a division - is pretty startling, and should wake up those who are not seeing the trend of companies going where growth is, but also capital going where capital is treated best.
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