“WE WON'T let up”

“WE WON'T let up,” insisted Bob McDonald, the boss of Procter & Gamble (P&G) at the annual shareholder meeting of the world's biggest consumer-goods company on October 12th. He promised that P&G was still on track to have 5 billion customers by 2015. But it is a struggle for the maker of Pampers nappies and Fairy washing-up liquid. “Many of the economies in which we operate are still recovering from recession,” Mr McDonald admits.

P&G and its archrival Unilever, another global consumer-goods firm, had a grim time last year: profits plummeted. This year has been only slightly better. Economies are still ailing, and the cost of raw materials is climbing.

But there is something else happening. Basic consumer goods were long assumed to be more or less recession-proof. Shoppers may not be able to afford Dior dresses or Cartier watches, went the argument, but they still need loo paper and detergent. Yet people are finding ways to save money even on daily necessities.

They are shopping less and with more purpose. Some people deliberately pick up a basket rather than collect a trolley in supermarkets, to prevent themselves from buying too much. Some buy smaller packets, which are cheaper, or huge ones, which are better value. Many make do without air fresheners, hair conditioner and other fripperies once deemed essential. Many scour the internet for special deals. According to a report by PwC, a consultancy, 93% of shoppers say they have changed their behaviour as a result of the economic downturn.

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