Procter & Gamble’s CEO to seize market opportunity

There is an ongoing trend among shaving industry – men who are more willing to shave their bodies than their faces are growing which is an opportunity for AG Lafley, Procter & Gamble’s newly-returned chief executive, as he seeks to revive the struggling business.

Since 2009 Gillette has lost out to cheaper Energizer brands – Schick and Wilkinson Sword – and retailers’ in-house products, according to Euromonitor, a research group. At the same time men’s shaving habits in the US and Europe have changed.

Shaving as frequently as once in three days has become a trend around the world, reducing of razor and blade purchases, said Nicole Tyrimou of Euromonitor. The weak economy has had a similar effect: some men are shaving less to save money, while others without a job – or job interviews – see less need for a clean shave.

To offset the trend, P&G has been promoting so-called “manscaping” this year with an advertising campaign called “What Women Want” and online videos offering shaving tips. The percentage of men shaving below the neck has increased to 29% in US, 49% in UK and more than 56% in Germany.

Gillette applied for the trademark “Gillette Body” in May and this month filed a patent consistent with body shaving, said Javier Escalante, analyst at Consumer Edge Research.
Gillette long depended on consumers trading up from basic to premium products, but it is failing to win over more cost-conscious men who are sceptical of innovation features such as vibrating handles and are not willing to pay extra for it.

In men’s razor sales, Gillette’s share in western Europe fell to 64.5% last year from 67.5% in 2005, while Energizer increased from 14.7% to 15.5%. In the US, Gillette’s share was 69.2% last year compared with 70% in 2005, while Energizer’s grew from 13.8% to 15.4%. It said that in the first quarter of 2013 it maintained or increased market share with its high-end Fusion, mid-range Mach 3 and low-priced products.

Procter & Gamble shares remained unchanged on Friday while being on a 18.41% advance year-to-date.