Procter & Gamble
Procter & Gamble

From Tide laundry detergent to Crest toothpaste, Americans spend roughly $100 on Procter & Gamble products each year.

But in China, where P&G is the number one consumer products company bringing in more than $5 billion in annual sales, the average consumer spends less than $4 a year on P&G products.

The Cincinnati-based company sees tremendous opportunity in China's growing middle class, and has already invested more than $1 billion in its operations there. It's also creating new low-cost products to reach poor, underserved rural communities -- what the company calls the "$2 a day" consumer, based on average income.

P&G now employs about 8,000 people in China and is adding more.

An active member of the U.S. China Business Council, P&G's CEO Robert McDonald often points out that growth overseas actually supports American jobs.

"The simple fact is that success in fast-developing markets like China leads to secure, high-wage jobs here at home," he said in an op-ed in October, estimating one in five of P&G's 40,000 U.S. employees support the company's international business.

Can P&G make money in places where people earn $2 a day?



Last updated August 22 2011: 12:03 PM ET
Join the Conversation
'Made in China' makes money for the U.S.A.

More than half the amount you spend on Chinese-made goods actually stays in the U.S.

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.