---
title: "Is P&G in Decline? Can It Not Recover?"
description: "Recently, Ke En, deputy editor of Business Review magazine, published an article titled 'Why P&G Is Declining and Will Never Recover,' which sparked considerable discussion online and among friends. The article refuted eight diagnoses from academia and industry, including focusing on the mass market and losing the high-end segment, brand blur, multi-brand failure, big company disease, functional advertising no longer attracting young people, slow digital marketing, talent drain, and market saturation with economic downturn. The author of this response disagrees with the conclusion and argues that P&G can recover by embracing the internet and adjusting its strategy."
author: "丁忠卫"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-07-03"
language: "en"
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# Is P&G in Decline? Can It Not Recover?

> Recently, Ke En, deputy editor of Business Review magazine, published an article titled 'Why P&G Is Declining and Will Never Recover,' which sparked considerable discussion online and among friends. The article refuted eight diagnoses from academia and industry, including focusing on the mass market and losing the high-end segment, brand blur, multi-brand failure, big company disease, functional advertising no longer attracting young people, slow digital marketing, talent drain, and market saturation with economic downturn. The author of this response disagrees with the conclusion and argues that P&G can recover by embracing the internet and adjusting its strategy.

A couple of days ago, Ke En, deputy editor of Business Review magazine, published an article titled "Why P&G Is Declining and Will Never Recover," which stirred up quite a stir on the internet and in social circles. The article refuted one by one the diagnostic opinions from academia and industry regarding P&G, including: 1. Focusing on the mass market and losing the high-end segment; 2. Brand blur; 3. Multi-brand failure; 4. Big company disease; 5. Functional advertising no longer attracting young people; 6. Slow digital marketing; 7. Talent drain; 8. Market saturation and economic downturn. At first glance, the refutations seem reasonable, which may lead many readers into a misunderstanding. After reading it, I strongly disagreed and couldn't help but write down my own views, as a form of discussion, and I welcome your comments.

Actually, what I find most incomprehensible about this article is how the author concluded that P&G can never recover. The diagnoses given by the industry are things that anyone in FMCG marketing can see; that is, these problems are discoverable. Although they may not hit the nail on the head, they are not entirely "untenable" as the author claims. Although I have never served P&G, I fully believe that P&G must have the eight problems listed above. Every company has problems, especially a company with a 179-year history like P&G. The eight diagnostic problems from the industry are certainly not groundless. These problems are too common; when a company performs well, they are masked, but when performance declines, they surface. Take Huawei, for example: I don't believe Huawei doesn't have big company disease; it must have it, but it is currently overshadowed by its brilliance. Many experts in academia and industry can identify many problems, but when asked to solve them, they have no solutions or come up with bad ones. It is at this point that the role of entrepreneurs and professional managers truly emerges. However, the author directly denies the role of professional managers, comparing them to Li Hongzhang and Zhang Zhidong in the Westernization Movement. Entrepreneurs and professional managers change a company's fate by altering corporate strategy or adjusting business thinking. How can that be compared to Li Hongzhang and Zhang Zhidong trying to change a nation's fate through the Westernization Movement? The scales are vastly different—one is on the ground, the other in the sky. How can they be compared?

The entire article only conveys the author's worship of the internet, believing that the advent of the internet age, information age, and data age will inevitably subvert all products of the industrial age. Although the Industrial Revolution replaced manual labor with machines, did it kill all handicraft workshops? Some transformed into machine factories, while others became specialized handicraft manufacturers with long histories. My point is that no matter what era comes, any enterprise, company, or individual can avoid a dead end as long as they keep learning, actively respond, and make adjustments and changes.

Let's look at P&G's sales data over the past few years: In 2011, revenue was $79.689 billion, profit $12.736 billion, ranking 80th in the Fortune 500; in 2012, revenue $82.559 billion, profit $11.797 billion, ranking 86th; in 2013, revenue $85.12 billion, profit $10.756 billion, ranking 89th; in 2014, revenue $84.167 billion, profit $11.312 billion, ranking 92nd; in 2015, revenue $84.537 billion, profit $11.643 billion, ranking 100th. From these data, I can only see that P&G's ranking has been declining over the past five years, with no significant growth in revenue and profit. I really cannot see the decline and inability to recover that the author mentions. Although not growing is a regression, it doesn't equate to decline, does it?

I do not deny the impact of e-commerce on P&G, nor do I deny that the internet has brought confusion to P&G, because these have indeed hit the confidence of P&G's distributors and retailers. Last year, a third-party company invited me to participate in a P&G distributor forum to share my views on Internet+ and boost the confidence of distributors and retailers. This is not only a problem for P&G; it is a problem for all physical enterprises. Therefore, I believe P&G's real problem is how to embrace the internet. Once this problem is solved, with the valuable experience P&G has accumulated, it can take off again without issue.

When Nokia's CEO said after being acquired by Microsoft that they hadn't done anything wrong, that statement was problematic. Many people immediately think, "Yes, smartphones overnight disrupted traditional mobile phones. Who can we blame? Blame technological progress, blame the internet revolution." This is human nature; no one wants to take responsibility, so they attribute it to the fast-changing world. Think about it: if Nokia had not refused Android but cooperated fully, would Samsung have had a chance? Probably Apple wouldn't have gained a large share either. That's because Nokia made mistakes, which led to its failure and acquisition.

Currently, it cannot be said that P&G has made any fatal mistakes. Turning the tide is entirely possible. P&G has cultivated many high-end talents; the author also mentioned that GE CEO Immelt, Microsoft CEO Ballmer, and eBay CEO Whitman are all top talents cultivated by P&G. In China, JD.com is also eyeing P&G's talents. I believe the key is for P&G to unify understanding at the highest level, select a strategic leader who understands both online and offline, change the strategy, maintain brands with traditional advantages, and develop new brands targeting high-end consumers and products for the post-80s, post-90s, and post-00s generations. Adopt different marketing and promotion strategies for different consumer groups, combine traditional media with internet media for integrated marketing communications, leverage online and offline advantages, and brilliance will surely reappear.

As for the admired small and beautiful brands, I also believe they will exist and exist in large numbers, but I believe big brands will still exist and stand firm. The value of a brand cannot be underestimated in any era. Have so many small and beautiful internet brands affected BAT (Baidu, Alibaba, Tencent)? As for the CCTV Spring Festival Gala, many people said no one watches it and it can't go on, but to this day, it remains the highest-rated program on New Year's Eve for Chinese people, regardless of its quality, because it has become a habit for many. The ultimate goal of any brand's product is to make consumers' purchasing behavior a habit, right? Why say big brands will be subverted by small and beautiful brands? Those who are used to Head & Shoulders will continue to use it, and those used to Rejoice will continue to use Rejoice. Similarly, those who have developed a habit for L'Occitane and Lush will continue to be fans of L'Occitane and Lush. This has nothing to do with big brands or small and beautiful brands; it is about whether the company has embedded the brand in people's hearts, how many consumers it has moved, and how many fans it has. That is the key. It is a relationship of integration, not subversion. As long as P&G creates its own L'Occitane and Lush, why worry about not moving those target consumers? After all, with a brand like P&G as a backing, consumer trust is different.

If we follow the author's logic, wouldn't big brands like Gree, Wahaha, and Yili also decline and never recover? Isn't that ridiculous? The conclusion that "P&G's decline is inevitable, and P&G will never regain its glory" is too flippant. Just because "P&G is a product of the industrial age's 'mass production + mass retail + mass channels + mass brands + mass logistics'"? Gree, Wahaha, and Yili are all such products, but these companies, after the arrival of the information age, have continuously learned and explored, finding their own future development paths. Although they have experienced pains, aren't they developing healthily? And Li Ning, which closed countless stores during tough times, has recovered now, hasn't it? Many physical enterprises and stores are now recovering. Why say P&G cannot? Motorola and Nokia have both returned to the Chinese market. Articles that attack physical enterprises to attract attention should be published sparingly. It is better to be cautious when predicting a company's prospects.

**Ding Zhongwei:** Senior food marketing expert, with 20 years of experience in food marketing and training. He has served in well-known food companies such as Hsu Fu Chi, Golden Monkey, Yake, and Jinguan. Currently, he is the General Manager of the Marketing Center of Shanghai Zeyun Biotechnology Co., Ltd., and Executive Director of the China Snack Food Professional Committee. He is a special expert contributor to "China Candy," and a contributor to magazines such as "Sales and Market," "Sales and Management," "Sugar, Tobacco, and Alcohol Weekly," and "Food Industry Technology." He is a columnist for "First Marketing Network" and a special contributor to several self-media platforms including "Sales and Market," "Sales and Management," "Internet+," "FMCG Distributor Professional Management Consulting," and "Golden Distributor." Email: devy66663@163.com

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