P&G’s Gillette Struggles As Rivals Boost Distribution, Direct-To-Consumer Offers

Procter & Gamble’s razor brand Gillette is facing increasing pressure as competitors take market share through broader distribution and direct-to-consumer offerings. CFO Jon Moeller outlined these issues and a growth plan for the brand to protect and boost sales. Gillette reportedly holds a 60% share of the $15 billion shave care sector, but rivals like Harry’s and Dollar Shave Club are eroding that. Both have taken their online subscription models into Europe, and Harry’s is also available in major retail chains, including Walmart and Target. P&G responded to the challenge by reducing its prices last year. It has also re-launched its online subscription business, Gillette on Demand, and introduced a number of innovations. Moeller was optimistic on volume trends, with the male shaving category in the US posting volume growth for four successive quarters. He also expects shipment growth to translate into stronger sales as lower prices take effect.[Image Credit: © Procter & Gamble]