The “underlying fundamentals” of brand name constructing are what is going to set manufacturers aside in a future the place AI could also be driving many shopper selections, says Procter & Gamble’s chief monetary officer.
In the course of the firm’s quarterly outcomes for the interval ended 30 September, CFO Andre Schulten was requested by an investor how the FMCG firm, which owns manufacturers together with Fairy, Head & Shoulders and Pampers, would drive shopper alternative in an period the place purchasing may very well be automated by an AI agent.
The “underlying fundamentals” of brand name constructing are what is going to set manufacturers aside in a future the place AI could also be driving many shopper selections, says Procter & Gamble’s chief monetary officer.
In the course of the firm’s quarterly outcomes for the interval ended 30 September, CFO Andre Schulten was requested by an investor how the FMCG firm, which owns manufacturers together with Fairy, Head & Shoulders and Pampers, would drive shopper alternative in an period the place purchasing may very well be automated by an AI agent.
“All of it comes again to the to the underlying fundamentals. Do you perceive the buyer?” Schulten stated.
Earlier this month, main US retailer Walmart introduced a partnership with OpenAI, the enterprise behind ChatGPT, to convey a purchasing performance to the generative AI chat software. Amazon additionally this week introduced the launch of it ‘Assist Me Resolve’ AI software, designed to assist customers make selections between totally different merchandise.
Whereas partnerships and instruments like these are nonetheless comparatively new and nascent, rising AI capabilities might imply some customers aren’t shopping in the identical method, as a substitute getting AI brokers to do it for them.
For Schulten, it nonetheless comes right down to P&G speaking what it phrases its “superior model propositions”, working with retail companions to make sure the enterprise understands algorithms in retailer and the way the AI agent seems for info and merchandise.
“I really feel we’re effectively positioned,” he stated. “I really feel our knowledge infrastructure, our shopper understanding, our collaboration with retail companions, is excellent.”Profitable hearts, minds and fashions: Model constructing in an AI world
With the arrival of recent methods of purchasing by AI, right here is loads of “alternative” for P&G, Schulten asserted.
“I do consider it opens up new prospects for manufacturers to make themselves seen,” he stated.
Based in 1837, P&G has 187 years of expertise in adapting to the tides of modernisation. It treats these adjustments as an “alternative”, says Schulten.
“We went from candle retailer to supermarkets to hypermarket to on-line purchasing to social commerce, all a possibility,” he stated. “We went from newspaper advertisements to radio to TV to web to social media, all a possibility.”
Lengthy-term mindset
In addition to asserting the significance of the basics in relation to adapting to technological shifts, Schulten additionally emphasised the significance of doing the fitting factor for the long run in powerful macroeconomic instances.
“The long-term deal with the energy of our manufacturers and classes is one of the best ways to place ourselves for robust development when the financial local weather and shopper confidence improves,” he stated. “This begins with a robust innovation plan and wholesome funding.”
Whereas worth or promotion is perhaps a part to that reply, the true resolution right here to create sustainable development is to drive innovation and drive superiority.
Andre Schulten, P&G
The corporate indicated it might be investing extra spend in innovation and “demand creation” because it faces a tough shopper in addition to geopolitical atmosphere.
The corporate reported a 3% gross sales improve within the first quarter of its fiscal 12 months 2026, with internet gross sales of $22.4bn. Regardless of driving elevated gross sales, P&G had flat volumes in its most up-to-date quarter, which means it didn’t handle to drive extra demand for its merchandise.
Schulten stated the present aggressive atmosphere was driving extra promotional exercise in a few of its classes.
“Whereas worth or promotion is perhaps a part to that reply, the true resolution right here to create sustainable development is to drive innovation and drive superiority, talk that innovation with the fitting claims [that are] significant to the buyer, significant to the retailer, get the retailer assist on-line and in bodily shops, and thereby create worth for the buyer that’s engaging,” he stated.
