1. Gillette has the advantage of being first to market, having had the longest amount of time to establish their brand image and position in the category. This also has allowed them to grow a strong distribution network over time to best reach their target market.
2. Another strength is Gillette’s relationship with Procter & Gamble. P&G has a great deal of experience in consumer goods and very strong research capabilities. P&G also has strong, positive brand awareness with consumers, strengthening Gillette’s Brand Identity as a quality brand.
3. Gillette has a reputation for being innovative, constantly augmenting their core product. This both strengthens their brand and continually generates interest from the market.
4. 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.
1. Gillette relies on a Product Differentiation strategy to motivate consumers to pay a premium price for their products. However, disposable razors are ultimately a commodity market, and the market is becoming increasingly price sensitive. New entrants who offer similar performance, but using a Cost Leadership strategy, are quickly eroding Gillette’s market share.
2. Gillette’s drive to redefine what positive masculinity is alienates a significant portion of their target audience who have more conservative, traditional values. For example, after the debut of their “The Best Men Can Be” ad, many consumers began to boycott Gillette and turn to alternatives.
3. Though Gillette is known for their product innovations, the disposable razor market is now in its maturity stage with little new innovation possible. As a result, features that are now advertised as innovations are often trivial, like adding an extra blade. This will make it difficult for Gillette to hold on to market share as they will be less able to differentiate themselves from their competitors.
4. The downside of having innovative razors is that they often contain a higher number of smaller parts than the simpler razors of competitors. This increases Gillette’s manufacturing costs.
1. There is growing awareness globally among the masses regarding personal hygiene and grooming. This combined with the increase in the population and economic growth has resulted in improved living standards, which is propelling the demand for hygiene/grooming products across the world.
2. 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.
3. A trend that emerged because of Covid, consumers are now showering/bathing more frequently, contributing to market gains in the personal care market. Long-term sales growth for the market is expected, as many consumers plan to continue to use showering and bathing rituals to manage their mental wellbeing. Through advertising, it would be easy for grooming brands to also associate themselves with mental wellbeing and reap increased sales growth.
4. 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, in particular salons and barbershops. Many consumers who would otherwise choose shaving services, will choose use-at-home substitutes instead of going out, giving those markets a boost in sales until consumer confidence is regained.
1. 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. This negates the need for shaving products.
2. Although disposables are the most used razor, the segment experienced a 3.7% decline in sales from 2018-19. Meanwhile, the non-disposable razor market experienced sales growth, indicating that this market is cannibalizing disposable razor sales.
3. 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 most shaving creams, however there is a concern that they may be absorbable through the skin which could possibly pose a health risk. The FDA might choose to ban the use of these chemicals and pull products that contain them off the shelf.
4. 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. These measures would require significant financial investment and lead to decreased profits.