Procter & Gamble (P&G) is a name that resonates in households around the world, not only for its hygiene and personal care products but also for its rich history of innovations and global impact. Founded in 1837 by William Procter and James Gamble, the company began modestly in Cincinnati, Ohio, and evolved into one of the giants of the consumer goods industry.
With iconic brands like Pampers, Tide, and Gillette, P&G has shaped the daily lives of millions, offering practical and reliable solutions. In addition to its commercial success, P&G stands out for its social and environmental responsibility initiatives, committed to creating a better world through sustainable practices and community support programs.
In this text, we will explore fascinating facts about this industry giant, revealing what makes Procter & Gamble such an influential and innovative force.
1 – LOGO AFTER BRAZIL’S INDEPENDENCE
Less than 20 years after Dom Pedro declared Brazil’s Independence, immigrants William Procter and James Gamble founded their company in the United States. One a candle maker and the other a soap maker, both married two sisters whose parents were known for their shrewdness.
The sisters’ father suggested they join forces in a venture, and in the context of the 19th century, disregarding a father’s advice could have been a grave mistake. Fortunately for them, they decided to follow the advice and founded the company, which in just two decades would reach a revenue of 1 million dollars.
2 – FIRST RESEARCH LABORATORY
Before the end of the century, Procter & Gamble established its first research laboratory, marking the beginning of an era of continuous innovation for the company. In 1961, the introduction of Pampers transformed the diaper market, which had been dominated by cloth diapers that were notoriously impractical. Although the disposable diaper was not an original invention of P&G—since Johnson & Johnson had pioneered this field—it was Procter & Gamble who popularized the product.
The real innovation came a decade later, with the addition of adhesive tapes and tabs around the baby’s legs, eliminating the need for pins and further revolutionizing the diaper market.
3 – BILLION-DOLLAR COMPANY
In 2000, under the leadership of AG Lafley, Procter & Gamble had 10 brands valued at over 1 billion dollars each. Today, that number has grown to 25 brands, including names like Duracell, Ariel, Gillette, Head & Shoulders, Mach3, Pampers, Pantene, Ace, and Wella.
4 – THE COMPANY ALSO SELLS PERFUMES
It’s quite possible that you’re using a product developed by Procter & Gamble employees at this very moment.
And I’m not just referring to items like Always, Vicks, or Pantene, but also fragrances from renowned brands such as Dolce & Gabbana, Hugo Boss, Lacoste, and Gucci. Procter & Gamble employs about 10% of the world’s perfumers, who are responsible for creating the scents for these prestigious brands, some of which were acquired with the purchase of Wella in 2003.
5 – OBSERVING CONSUMER HABITS
Just like a naturalist studying nature, much of the company’s work involves observing and recording consumer habits.
For this, thousands of people are invited to spend a day washing, ironing, and cleaning at one of the company’s 26 Innovation Centers around the world. Although it may not seem like the most fun activity, it’s a necessary task, and at least the participants don’t have to pay for it.
6 – TESTS TAKE YEARS BEFORE A PRODUCT HITS THE MARKET
Pampers took five years of research and development before being launched to the market. Ariel Pods, introduced in Brazil on Mother’s Day, took almost a decade to be finalized.
There were 450 tests conducted with over 6,000 consumers and millions of dollars invested in research to create a detergent capsule with fabric softener function that truly works. And it seems the formula worked, as the segment is generating hundreds of millions in revenue and has prospects for continued growth.
7 – CHINESE BABIES
Procter & Gamble has a deep understanding of consumer needs, as demonstrated by its findings in China. Through research, the company identified that Chinese babies require larger diapers than those used in other countries.
This is due to the one-child policy, which results in babies receiving more attention from parents and grandparents (plus it turns out that a typical Chinese household houses four adults and one child).
As a result, babies spend more time being carried and take longer to crawl, leading to more robust legs and, consequently, the need for larger diapers.
8 – THE INDIAN MARKET
To conquer the Indian market, Procter & Gamble had to deeply understand how local consumers shaved, including their frequency and methods.
They discovered that their sophisticated Mach3 and Fusion models would not be suitable, as men in India typically shave only twice a week, causing the hair to grow quite long and become difficult to trim.
Additionally, with 20 people sharing a house, mirrors and running water are not as accessible. To meet these needs, P&G needed to develop a razor that could handle longer beards, work without a mirror and water, and be affordable, as the most popular model in the country cost only a few cents. The solution was the Gillette Guard, which was an immediate success.
9 – ABANDONED A BILLION-DOLLAR BUSINESS TO FOCUS ONLY ON HYGIENE
Which company would have the courage to sell both Pringles and the country’s most popular coffee? Procter & Gamble did. They decided to abandon a $7 billion segment to concentrate their financial and human resources on what should be their true focus: hygiene and personal care.
10 – SIGNIFICANT INVESTMENTS
In recent years, the company has faced challenges, and besides Ariel Pods, not many new innovative products have stood out. However, innovation remains an essential part of Procter & Gamble.
The company invests 50% more than its main competitor, Unilever, totaling $2 billion, which supports 15 million annual research studies conducted by 8,000 scientists, including mathematicians, psychologists, sociologists, chemical engineers, and biologists—of which 1,000 hold doctorates.
John Smale, a notable former CEO of the company, played a crucial role in this process. He recognized that the company’s four major successes were preceded by 70 laboratory failures, meaning 66 failures before achieving success. This understanding of the importance of mistakes and dedication to research laid the foundation for Lafley’s management in the following years.
11 – GREAT FOCUS ON THE CONSUMER
If you think your company is consumer-centered, it’s because you haven’t yet met Procter & Gamble. For P&G, consumer focus is more than a principle; it’s an almost obsessive mantra within the company.
Everyone knows, hears, and practices it daily. Understanding the consumer is a fundamental requirement, and the company does this through field research, constant chat interactions, observations in their Innovation Centers, testing, and even home visits to consumers.
12 – AN EXAMPLE OF A LEADER
The first time I heard about AG Lafley was in a book a few years ago. I remember the author mentioning the executive’s peculiarity of visiting people’s homes to observe how they used the company’s products.
It almost seems surreal to imagine that someone could manage a cleaning products company without truly understanding how consumers use them. Lafley didn’t limit himself to spreadsheets, charts, and meetings; he was actively involved in the field.
On one occasion, during a trip to South America, journalists went to the company’s headquarters looking for the executive and were surprised to find that he was actually in the small kitchen of a young Venezuelan mother.
Procter & Gamble is a true giant of innovation, with a history that reveals a deep commitment to understanding and meeting consumer needs.
From its humble beginnings to becoming a global leader in consumer goods, the company has demonstrated an impressive ability to adapt and evolve. Its massive investments in research and development, practical approach to understanding real product use, and willingness to learn from failures are just some of the keys to its lasting success.
P&G has not only created revolutionary products like Pampers and Ariel Pods but has also redefined the concept of innovation and excellence in the market.
As the company continues to grow and expand, its legacy of innovation and consumer dedication remains a source of inspiration and a model of how vision and practice can transform entire industries.