Packages of Pampers diapers are displayed at Target on June 05, 2025 in Novato, CA.
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Procter & Gamble China is selling silk diapers, part of a strategy to encourage shoppers to spend more, even as demand for some of its products has weakened.
China is the company’s second largest market after the US. In both markets, P&G has turned to innovation rather than discounting to attract consumers trying to spend less at the grocery store. For example, last year it launched a new formula for its Tide liquid detergent in the US
In China, P&G faces another challenge: record lows birth rate. Government data released on Monday showed births falling to 5.6 per 1,000 people in 2025, down from 6.4 in 2023.
For P&G, fewer babies means the company sells fewer diapers. P&G is looking to luxury to boost sales in its baby care division.
At the company’s earnings call Thursday, executives touted the success of Pampers Prestige. He added silk fibers to the inside of the diaper for comfort and protection against the skin.
“Chinese parents want nothing but the best for their babies,” said P&G CEO Shailesh Jejurikar.
He added that the company’s “reengineering” of its super-premium diaper line had contributed to double-digit organic sales growth and a 3% increase in market share of P&G’s baby care business in Greater China over the past 18 months. The company did not share how the price of Pampers Prestige compares to other diaper lines in China.
In the latest quarter, P&G’s general baby care division reported a single-digit organic sales decline despite a 20% jump in organic sales in Greater China, according to CFO Andre Schulten.
More broadly, the focus on innovation is paying off for P&G. Consumer sentiment in China remains negative, but P&G saw 3% growth in the market last quarter, Schulten said in a press conference Thursday.
P&G’s sales were weak in the state. Organic sales in North America fell 2% in the fiscal second quarter. P&G hopes the strategy it’s working on in China will soon pay off in the US
Current divided by two — or “K-shaped” — the economy has shown that wealthy Americans are still willing to flex their purchasing power, even as lower-income shoppers pull back.
Shares of P&G rose more than 2% in morning trading Thursday after the company reported better-than-expected earnings. income. However, the company’s earnings fell short of Wall Street expectations, hurt by weaker demand in the US.