May 8 - Can manufacturers rely on emerging market demand to make up for rising raw material costs? We ask Tupperware CEO Rick Goings.
We continue now our economy 2012 CDs where we meet with CEOs from all over the world. To hear their unique take on how the F -- Opportunities -- -- an expansion of the bumps and the role as. We're joined now by Rick Goings CEO of Tupperware Rick thanks for being with us not -- -- percent of your sales come from the US and Europe. How concerned are you about slogans and these economies. Well we're I think it depends on the business model one has we're not generate concern we have -- business as counter cyclical. We have an economic slowdown in those markets. There's a bigger recruiting pool so we just hit the switch this has recruit more -- consumer purchase is me. Had some pressure on them but will have a larger -- -- we've shown that. We've grown through all these crisis in in Europe and the US. But this crisis in Europe in particular is. Unlike any other before that suddenly and and I don't like things how concerned are you about the political. Mentally is on this subsequent economic fallout from -- can. Well as somebody who's lived and worked. And in Europe for a number of years myself I've had some exposure. Two it. I think Europe's gonna get through this it's interesting right now. The -- is underestimated. Is the impact on peace. That this economic cooperation has had a very interesting number. There hasn't been -- European war in 65 years in the previous 45 years more than a hundred million Europeans. The only problem there has been in Europe peers -- in this economic crisis the Balkans was this was a civil war. I don't believe and I've talked to many. Europe cannot compete against the Far East as individual countries they need to hold together. Okay will you mentioned China there how much time China under emerging world. Take up the slack from the US and you. Well that's where the emerging middle class is I just look at the numbers there's 500 middle. Middle class 500 million middle class. In Asia right now in eight years they'll be a 1000000007. Middle class so companies that have beach heads. In Asia Pacific have a wonderful opportunity to grow with the middle class. Particularly they're looking for western brands. So it we think it's a huge opportunity. One problem you may face to have an -- this year as rising raw material costs on specifically resident. How much of a concern is that and how would you fighting not into your margins. Well we've never had a I've been CEO twenty years. We've never had a good year turn into a bad year because of resin prices and the reason for this is we don't so commodity products if you're -- -- Upper end jewelry. Story is one platinum -- gold prices go up. They continue to do well. If you're branding products. Then you can do well you're bikers were and we own our own channel so what we'll do fine through it. -- know -- will that involve expansion and its other sensors on the other it is something can now I'm in particular personal care products. Yeah we've about a third of our company now we don't. Series eight beauty companies. Out there so that's mitigated some of the some of that also is we gotta do new product categories. They don't utilized -- that is also. Had the same kind of effect and what what sexism but yeah we -- wanted to stainless cookware kitchen tools and gadgets products like that. -- our model is very much change like an apple model that went from just a Mac. To these other to the communications business with the -- IPhone to the music business with their iPod we've done the same kind of thing new and different product categories so -- be looking up a list all thousand dollars. Well I'd like to see that well we were right ten dollars about five years ago were already in the sixties so we're headed that direction. Okay but to thank you very much my facts -- to -- US CEO Rick Goings. Lasts all Hamas finale but states into -- to us from more big names and our economy 2012 CDs I'm Jamie we give them this is Reuters.