Colgate Palmolive Looks To BRIC Nations
Nov 23, 2009- Sara Zucker
Colgate Palmolive forecasts its global volume sales to increase between
4% and 7% in 2010. The household megabrand hopes to gain the loyalty of
consumers in a number of rapidly developing nations such as Brazil, Russia,
India, and China, this grouping of rising, populous contries known by
the acronym BRIC.
"We're looking to grow faster in the emerging markets than we do
in the developed markets ... the BRIC countries would be obvious areas
of growth," said Ian Cook, the company's CEO.
Cook feels that China, India, and Brazil exhibit promising economic vibrancy,
perhaps from using the brand's teeth whitening gel? Just a guess. Either
way, China stands out as "stronger than other markets," with
a positive performance despite today's tough financial climate.
Though hit harder by the recession, Russia's economy is also picking up
and is expected to become an important customer base. Colgate is crossing
its clean fingers that these areas will deliver annual gains of more than
10%, an estimate based on recent years' growth.
"If you take the product penetration and you take market share, it's
not an enormous stretch to see a business going double-digit," Cook
Though the megabrand's staple products have traditionally been unaffected
by broader changes in the economic landscape, Colgate is taking every
precaution to ensure continued stability -- including a potential merger
in the near future. Rumors are swirling that the household goods specialist
may merge with UK-based Reckitt Benckiser.