According to a number of foreign media reports, Procter & Gamble signed an exclusive licensing and distribution agreement with Newsan, saying that the latter can sell Procter & Gamble's Gillette, Pantene, Head & Shoulders, Donnie and other brands in Argentina, as well as produce and sell Pampers diapers and Always sanitary napkins. It is worth mentioning that the agreement also includes Newsan's acquisition of 100% of P&G Argentina, as well as P&G's production facility in Villa Mercedes and P&G's office in the province of Buenos Aires. This means that Procter & Gamble will officially withdraw from the Argentina market.
It is worth noting that before exiting the Argentina market, Procter & Gamble withdrew from the Nigerian market in December last year. Some industry veterans believe that the adjustments may be related to P&G's "slimming" program. In fact, one of the important reasons for P&G's exit from the Argentina market is that its sales in the region are not ideal. P&G's fiscal 2023 report shows that during this period, P&G achieved net sales growth in all regions. However, although the Latin America and India, Middle East and Africa regions, to which Argentina and Nigeria belong, grew by 7% and 5%, respectively, they are blocs. Two of the slowest growing regions. It is also a common means for leading beauty groups to exit underperforming markets in order to focus more on markets and business areas with growth potential. Not only Procter & Gamble, but also international beauty giants such as Unilever, L'Oreal, and Estee Lauder are making major adjustments in order to survive the new economic cycle and reserve the momentum for success.