The shave category is valued at round $15bn. And according to Barrett J. Brunsman of the Cincinnati Business Courier, who covers P&G regularly, the company has 60% of that market share. But web-based direct-to-consumer brands like Unilever’s Dollar Shave Club and agile startups like Harry’s Razor are impacting the market.
“We have faced competitive entries in direct-to-consumer space as well as the traditional retail space,” acknowledges Charles Pierce, group president of P&G’s global grooming business, in conversation with Brunsman.
“We are addressing both,” adds Pierce. “To improve our growth and the growth of the market, we are driving innovation, new user trial, go-to-market excellence and improved consumer value across our portfolio.”
What’s new
In the coming months, P&G will introduce changes across the Americas region in an effort to stay competitive and hold fast to the company’s category leading status.
In Latin America, the company will begin selling a three-blade disposable razor. As Brunsman learned from Pierce, it’s meant to increase consumer spending, getting “men who use two-blade razors to trade up to more expensive ones.”
Here in the States, the company will update its Gillette packaging. “This is designed to simplify our brand architecture and improved findability and shopability for consumers, helping to drive purchase in category growth for retailers,” Pierce tells the Cincinnati Business Courier.
P&G is also growing its own web-based shave club. “We have versions of the Gillette Shave Club up and running in more than 10 top markets,” says Pierce. “Ensuring we have a winning plan online is an important part of our overall growth strategy.”
Additionally, P&G’s razor marketing strategy is quite strong. The company has put significant effort behind its Father’s Day and holiday season promotions. A partnership with the Star Wars Rogue One film, which opens next month, will ensure Gillette products get prime store placements and are top of mind for consumers passionate about the Star Wars franchise and motivated by the ads.