Most Companies See Growth in Developing Markets

Most companies like Avon (AVP - Analyst Report), Campbell Soup (CPB - Analyst Report), Coca-Cola (KO - Analyst Report), PepsiCo (PEP - Analyst Report), H.J. Heinz (HNZ - Analyst Report) and Procter & Gamble (PG - Analyst Report) are depending on the developing markets of Asia/Pacific and China for growth.

In spite of the current economic meltdown, sales growth has been recorded across companies for this segment. For example, Avon’s sales grew 9% in China while Procter & Gamble saw sales growth of 11% in the Asia Pacific region. In addition, soup companies such as Campbell Soup are also targeting markets, including China (Shanghai is the leading soup market in China with highest per capita soup consumption with almost 72% of the population consuming a bowl of soup everyday) for expansion. Also, in case of Heinz, Asia accounts for a big market, although sales in 2009 increased only 1.6%, primarily due to currency volatility.

Many more companies are trying to expand their operations in the developing markets and in China due to the huge untapped potential.