The P&G restructuring means that Singapore is now part of the company’s IMEA region, made up principally of India, the Middle East and Africa, explains Byravee Iyer in a campaignasia.com article about the leadership move.
Where and when
Not all brand management will move out of regional positions. “We’ve always had brand managers move to individual markets. P&G is now focused more on global design rather than regional design,” a company spokesperson told Iyer.
And, the company’s tactics can vary between brands, the “haircare brand Rejoice for example…will continue to operate out of Singapore,” wrote Iyer.
Leadership moves in the region have been underway since June when P&G eliminated the marketing director position companywide and instated a brand director role instead.
Then in July, India’s brand management was moved out of Singapore to the IMEA management center. And, the following month P&G “announced plans to divest, discontinue or merge about 90 to 100 brands around the globe over the next year or two to focus on the top 80 brands,” recalls Iyer.
A worrisome global economy
The company just released its second quarter earnings, which were thoroughly affected by the strength of the US dollar in the global economy. Net sales for P&G decreased 4% for the quarter, according to Andrew McDougall, Deputy Editor for Cosmetics Design.
“The Beauty, Hair and Personal Care segment was the one to let the side down,” McDougall reported. And, the company may struggle a bit financially in the near future: “The outlook for the year will remain challenging. Foreign exchange will reduce fiscal 2015 sales by 5% and net earnings by 12%, or at least $1.4 billion after tax,” said A.G. Lafley, the company’s CEO.
This means P&G will “continue to offset as much of the currency impact as possible through productivity driven cost savings, and is adjusting fiscal year earnings targets accordingly,” explained McDougall.
Who’s in charge
It may not be Lafley leading the way on those cost-saving initiatives. David Taylor, P&G’s new head of global beauty, is expected to move into the CEO role “once the time is right for Lafley to go,” according to a recent Cosmetics Design article on executive moves within the company.
The changing shape of leadership at P&G includes Deb Henretta becoming the company’s global president of e-commerce and Patrice Louvet stepping up to be group president of global beauty.