Energizer CEO: P&G is hurting the razor business

[Craig_From_Cincy]

I read this article today and thought it might be if interest to some members:

Energizer CEO: P&G is hurting the razor business

"The U.S. razor and blade business is shrinking, and it’s partially Procter & Gamble Co.’s fault, a top competitor said. The problem is “hyper-levels of promotional spending by our leading competitor,” Ward Klein, CEO of Energizer Holdings Inc. (NYSE: ENR), said in an earnings call.

The Town and Country, Mo.-based Energizer makes Schick shaving products. The U.S. razor and blade market declined two tenths of a percent over the last 12 weeks, he said. That was compared with a 52-week growth trend of 1.7 percent."

http://www.bizjournals.com/cincinnati/b ... g-the.html

So is Gillette only able to successfully sell large quantities of its expensive, flagship Fusion razors and refill cartridges when their price is subsidized with promotional support (ie, on sale)? I had read a year or two ago that Fusion hadn't been the home run that Gillette had hoped, partially due to its high price in the face of the great recession. In response, Gillette was changing its marketing to assert that the Fusion will give X number of shaves and as a result is a good value.

And now, in a story line right out of Mad Men, comes the news that Gillette has fired the firm that has handled its advertising for the past 80 years:

P&G brand parts ways with longtime advertising firm

After a nearly 80-year relationship with BBDO, Procter & Gamble Co. moved its Gillette men’s grooming business to Grey Global Group, Ad Age reports.

http://www.bizjournals.com/cincinnati/n ... gtime.html

Of course none of this is germane to our interests here at SMF, but I thought that news of the 21st Century razor wars might be of interest to some members.

[jww]

Thanks for posting, Craig. Oh the inner workings of the modern shaving industry. Meanwhile, Mitchell's just keep on squeezing wool for lanolin in West Yorkshire.

[divotmax]

I guess that must be the reason so many male "celebrities" have bad haircuts and scruffy beards. That seems to be the "look du jour" for the current macho male.

[gsgo]

Thanks for posting Craig, I like to follow and keep track of these things, these large consumer oriented companies are good barometers to general economic conditions. Despised as P&G is among many here and on other boards, following them can be very interesting as they are probably the most successful consumer products company of all time.

In the meantime, I continue to use my Mach III Turbo and buy my cartridges at Costco although my Japanese Feather SS certainly is gaining some traction in my morning routine.

[fallingwickets]

a fusion blade lasts an average of 40 shaves before i need to change it.....must be the spectacular trumpers rose lather providing extraordinary comfort hahahaha

clive

[TommyDawg]

Interesting read, but my first thought is...."consider the source". I am always leery when a competitor is the source of an article. Insert huge grain of salt here. Same as when politicians advertise their opponents position rather than articulating their own. I imagine if Schick had P&G type money, they would be spending it similarly. I am only speculating, of course. Thanks for posting it.
Tom

[brothers]

I took it to mean Schick is threatening to go out of business due to the giant taking all their business away, thus "shrinking" the industry.