Company

1. Gillette was founded in 1901 and was purchased in 2005 by Procter & Gamble (P&G). They were the first brand to introduce disposable razor blades for shaving. Today Gillette specializes in Men’s grooming products, such as shaving razors and various shaving-related accessories. They are considered pioneers and innovators in the Men’s razor industry. 

2. Gillette has been ranked 29th in Forbes list of World’s Most Valuable Brands. The brand has been valued at $19.2 billion as of May 2017, generating revenue of $6.8 billion. Products of the brand have won various awards and accolades such as Dupont Awards for Packaging Innovation and Edison Best New Product Awards.

3. In 2010, Gillette accounted for 70% of all razors sold in the United States. However, by 2019, that number had dropped to below 50%, due to increased competition in the market as well as questionable advertising strategies by Gillette that garnered considerable backlash for the brand.

4. Gillette has the advantage of being first to market, having had the longest amount of time to establish their brand and position in the category. They are also known for their numerous technological innovations.

Competitors

1.  Gillette’s main competitors are other producers of disposable razors, such as The Dollar Shave Club, Bic, Schick, and Harry’s.

2.  Another competitor are companies that make premium, non-disposable razors such as Merkur, Vikings Blade, Weishi, and Bambaw.

3.  Companies that make electric razors also offer competition, such as Philips Norelco, Braun, Panasonic, and Andis.

4.  Salons and barbershops are also competitors, since consumers can purchase a shaving service that negates the need for at-home shaving products.

Customers

1.  Gillette’s primary customers are “Gen X” and “Gen Y” men who prefer to keep a well-groomed and/or professional appearance.

2.  Gillette’s secondary customers are men who prefer to shave but have sensitive skin.

3.  Gillette’s primary customers attach importance to personal grooming and skin maintenance. This customer segment is willing to pay a premium price for quality personal grooming products.

4.  Gillette has developed several product lines for its secondary customers, specifically men whose skins are allergic or sensitive to conventional shaving products. These customers would otherwise resist shaving as it leaves their skin burning and with many cuts and rashes but are willing to shave if they find gels and razors that cause less irritation.

Collaborators

1. In 2019, Gillette and Twitch partnered to form the esports group Gillette Gaming Alliance, as well as the Bits for Blades campaign which gave Twitch Bits (the site’s digital currency) to those who purchased Gillette products online.

2. To reach new fathers, Gillette partnered with Pampers to offer a “daddy pack” that includes diapers and razors, as well as launching an online dad’s club.

3. Gillette has cultivated several sports collaborators, including David Beckham, Roger Federer, Thierry Henry, and Tiger Woods. These star athlete partnerships contribute to Gillette’s reputation as a performance brand.

4. Gillette also partnered with Movember (an annual event involving the growing of moustaches during the month of November to raise awareness of men’s health issues) to raise awareness of prostrate cancer and other men’s health issues.

PEST Analysis:

Political

1.  The Campaign for Safe Cosmetics is currently lobbying to give the FDA increased authority over the use of PFAS chemicals such as PTFE (polytetrafluoroethylene), perfluorooctyl triethoxysilane, perfluorononyl dimethicone, perfluorodecalin and perfluorohexane. These PFAS chemicals are commonly used in several personal care products, including shaving creams, however there is a concern that they may be absorbable through the skin which could possibly pose a health risk.

2.  In the U.S., a bill has been introduced that aims to reduce the use, production, and distribution of single-use plastics, as well as encourage the proper collection and recycling of plastic products. The bill pushes responsibility onto plastic producers and distributors. Under the bill, these producers and distributers must fund, design, and implement programs to collect and process the waste they produce.

Economic Trends

1.  Some analyst expect that a rise in inflation is imminent because of recent increased government spending. Inflation would likely result in a decrease in the public’s buying power. This might lead many consumers to replace premium commodity items with lower-cost substitutes.

2.  Total employment in the U.S. economy is projected to grow by 15.6 million during the 2012–2022 decade to reach 161 million; this represents a 10.8-percent employment increase. Since more people will be employed and earning salaries, more people will be able to spend money on premium products.

Social Trends

1.  Due to Covid, many consumers are distrustful of using services that bring them into close contact with people in enclosed spaces for prolonged periods of time, for instance restaurants or salons. These consumers will choose use-at-home substitutes instead of going out, giving those markets a boost in sales until consumer confidence is regained.

2.  Changes in style norms now favor facial hair above a clean shave. 33% of men in America maintain facial hair instead of shaving, and it is no longer expected of employees in professional settings to maintain a clean-shaven, stubble-free look.

Technological

1.  New company Terracycle is revolutionizing the recycling industry with a host of new processes that allow virtually all materials to be recycled and turned into raw inputs that can be reintroduced economically back into supply lines. Due to several recent partnerships in the beauty industry, they have proven that they can replace traditional resin inputs with completely recycled inputs. This will garner positive reactions from environmentally-conscience consumers.

2. Earlier this year, Schick announced the release of their new “Stubble Eraser” which is specifically designed to cater to a growing segment of shavers identified as ‘switchers’ (20% of men who actively switch between a clean shave and wearing stubble throughout the week). The Stubble Eraser is the first razor that allows men to shave seven days’ worth of stubble with minimum tugging and pulling. Unlike traditional manual razors, The Stubble Eraser integrates a revolutionary comb feature that aligns longer hairs and keeps them lifted so they can pass through the cutting blades without getting grabbed.