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We are seeing our fastest growth in developing and emerging (D&E) markets such as Asia, Eastern Europe and Latin America. Within these markets, we continue to focus on the BRICIT countries (Brazil, Russia, India, China, Indonesia and Turkey). The BRICIT countries represent half of the world’s population, but only six percent of K-C sales.
Sustainable growth is an important part of our strategy in D&E markets. Local manufacturing is a key element of this; and we are planning more regional manufacturing centers. These will create employment, contribute to local economies and limit our environmental impact from product transportation.
We must be sensitive to governmental, economic and cultural differences in D&E markets. Still, our policies and Code of Conduct apply at all K-C facilities worldwide, requiring the same standards of all our employees and operations with respect to labor and human rights, environmental protection, governance and ethical business practices.
Average income levels are generally lower in D&E markets than in developed countries, and small, traditional stores often account for the majority of our sales. We design and sell affordable, quality products in appropriate pack sizes to suit the consumer purchasing power in each market. This means streamlining our business to keep costs low and ensure we can offer shoppers good value. We have successfully introduced a lower-cost training pant in southeast Asia, Latin America and Russia, and continue to sell individually packaged Huggies and Kotex products in Asia and South America.
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