Kimberly-Clark forecast a decline in third-quarter sales and backed its outlook for the year, following a social-media firestorm in China over the company's diapers this past summer.
The controversy began in July when Chinese social media erupted after reports linked Kimberly-Clark's Huggies diapers to a product recall in the United States over potential asbestos contamination. The brand faced intense backlash on platforms like Weibo and WeChat, with consumers demanding accountability and boycotting products.
Kimberly-Clark responded by emphasizing its rigorous testing protocols and denying any safety risks to consumers. Despite the company's assurances, the reputational damage significantly impacted sales in the Chinese market, which is critical to its global growth strategy.
The firm maintained its full-year revenue and profit guidance but acknowledged the China market pressures. Analysts noted the incident underscores the importance of cultural sensitivity and rapid crisis management in Asia's consumer goods sector. The company has since launched a public relations campaign to rebuild trust.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing