P&G beauty unit split reflects wider struggle

Procter & Gamble Co's potential split-off of some beauty brands into a separate company reflects the struggles the world's largest consumer-products maker has had trying to master a fragmented, fast-moving industry.

P&G is working with advisers on a plan to sell or spin off some of its beauty brands, people with knowledge of the matter said. The company hasn't finalized the details and may decide not to follow through on a separation, the people said.

The fact that P&G is even considering such a plan shows how difficult the cosmetics industry - with its rapidly changing trends and numerous competitors - has been for a behemoth used to selling household staples like diapers and detergent. While P&G has focused on extending brands such as Olay skin care toward new audiences, rivals like L'Oreal SA have captured younger consumers with targeted lines such as Urban Decay.