That was the blunt assessment of P&G boss Dave Taylor on Thursday in his first investor presentation as CEO of the maker of Tide and Gillette.

Calling P&G performance in China “unacceptable,” Taylor, who took the reins in November, acknowledged that the company had misread local appetite for its premium products. That has hurt P&G’s ability to charge more in that market and let other consumer brands take market share.

“We looked at China too much like a developing market as opposed to the most discerning market in the world,” Taylor said at the Consumer Analyst Group of New York conference in Boca Raton, Florida at a session that was webcast.

In January, P&G said that its organic sales in China fell by a “high single digits” percentage last quarter, a painful performance in its second biggest market by both revenue and sales (after the United States). So, the company is expanding its higher-priced offerings there. Those include premium diapers in both the taped and pull-on segments, compact formats of its Ariel liquid detergent, and upcoming upgrades to Tide. P&G is also launching Oral B Gum Care, a new premium line of toothpaste, in China and ramping up advertising. And the list goes on.

But improvements won’t come overnight, one analyst warned, since P&G’s rivals have been quicker to sell online in China.

“It will take a few years to stem share losses,” JPMorgan analyst John Faucher wrote in a research note on Thursday. “They do have an uphill battle there, in our view, as their competitors have made more progress online,” he added, mentioning Kimberly-Clark (KMB) as one rival that has made inroads in that area.