Behavioral changes in customer can create big problems even for the biggest brands and corporations. One such change is more men sporting beards and reducing the frequency of shaving. And Gillette has been at the receiving end because of this.
1/6
1/6
A decade back, it was expected that one remains proper shaving was associated with professionalism at work. And beards were not considered to be professional enough.
But in recent times, beards have gained much more acceptance even at workplace. They are also in fashion.
2/6
But in recent times, beards have gained much more acceptance even at workplace. They are also in fashion.
2/6
Demand for men's shaving products has gone down by 11% in last 5 years. P&G has cited the growing popularity of beards as a reason of declining sales.
The sales growth for shaving category has been dismal for P&G staying negative for majority of the last 3 years.
3/6
The sales growth for shaving category has been dismal for P&G staying negative for majority of the last 3 years.
3/6
P&G acquired Gillette in 2005 for 57 billion $ which was the largest acquisition in the history of the company. But due to dismal sale performance in recent years, company wrote down the value of Gillette brand by 8 billion $ last year
4/6
4/6
Not only in the US, Gillette is having a tough time with India as well. Gillette India announced lacklustre results of the last quarter with sales down 12% and profit down by 40%
5/6
5/6
Gillette India missed a trick by not addressing the beard segment. Though they did try getting into more complicated body shaving category, but didn't have any products like beard gel and wax. And this is where new players like Ustraa and Bombay shaving club prospered.
6/6
6/6
• • •
Missing some Tweet in this thread? You can try to
force a refresh
