New entries in shaving shake up market

Drug Store News, May 17, 1999 by Andrea M. Grossman

The shave category was turned on its head in 1998 with the introduction of Gillette's Mach3, the first new blade introduction to hit the shave segment in 30 years. The triple-bladed razor, which Gillette reportedly spent an estimated $750 million to research and develop, offers ultra-thin blades coated with diamond light carbon. Despite the fact that Mach3 launched mid-year, sales of its razor refill blades ranked No. 3 for the 52 weeks ended Jan. 3, with sales of $70.4 million. Other Gillette refill blades, such as Sensor Excel, grew during the same period. Sensor Excel refill blades ranked No.1 in the category and posted sales of $149.9 million, an increase of 4.8 percent for the year.

Though Gillette dominated the refill razor category, Warner-Lambert's Schick showed strong increases for 1998, a performance attributed to relaunches and strong ad support. In honor of Father's Day, Schick teamed up with S.C. Johnson to offer specially packaged Schick Tracer FX or Protector razors along with a free 2.75-ounce can of Edge Pro Gel Sensitive Skin with Aloe.

"It was the best match for our sensitive skin positioning," said Hugh Duffy, Schick's senior marketing manager.

According to IRI information, 52-week sales of Schick's Tracer FX refill blades grew 17.7 percent.

Schick's Protector shaving system, launched in January 1998, added two technical innovations to the men's shave category: two blades wrapped with microfine safety wires to protect the skin from cuts and irritation, and a handle that allows the razor head to pivot in multiple directions.

Within disposable razors, Bic launched its new high-end disposable Bic Plus Shavers which implement a lubricator strip above the blade. Also during the year Schick relaunched its Schick ST disposable razor with a redesigned handle and a no-slip rubber grip.

Private label's leader in shave, American Safety Razor, introduced Premier Comfort, an alternative to Gillette's Custom Plus, as well as a triple blade. ASR updated its packaging for men's and women's moving blade cartridges.

Women's shave contributed category sales increases in 1998. In a move to increase sales in the entire women's shave category, as well as to bring focus to its Satin Care Shave Gel, Replenishing Creme and Body Wash, Gillette launched a $40 million ad campaign dubbed "Are You Ready?" in beauty magazines and TV spots. For the 52week period, Gillette's Sensor for Women refill blades grew 24.5 percent. Schick partnered with S.C. Johnson for Mother's Day by offering a specially packaged Schick Silk Effects razor with a free 3-ounce container of Skintimate Smooth Shave, a shave prep that helps moisturize and exfoliate skin. For the year, Schick's Silk Effects refill blades grew 20.8 percent.

While refill blade sales comprise nearly $800 million of the overall $1.44 billion razor category, moves to pump up sales in electric shavers were made in 1998. Gillette's Braun, the company's wholly owned subsidiary, expanded the electric shave segment with new price points and products. The Ultra Flex Integral, Braun's premium shaver; the Flex Integral, Braun's mid-priced razor; and the Pocket Twist razor, a pocket-size, battery-powered razor, expanded price points from $14.99 for a Pocket Twist to $200 for the Ultra.

Depilatories sales were fueled in 1998 by new players and launches. Carter Wallace's Nair created Quick & Simple 15 Second Microwave Wax and improved the grip on its Roll-On Hair Remover. Del Labs' Sally Hansen Depilatories introduced the Epilette Hair Remover Pad, designed to remove hair painlessly and exfoliate dead skin. Ardell's Surgi depilatory products launched a number of line extensions in January 1998, starting with Surgi-Gel Extra Strength Depilatory, Invisi-Bleach gel and Surgi-Sweet.

New to the U.S. market was Marzena BodyCare Products Inc. With initial distribution in Australia, Marzena entered the U.S. market in 1998 with a line of waxing products, along with a serum aimed to cut hair regrowth.

1999 shave innovations will include introductions in all segments within shave. Category leader Gillette recently launched Sensor Dazzlers razors with handles that sparkle and shine. In men's grooming is the Remington Precision Beard & Mustache Trimmer, available in four models with an ergonomic shape. In women's electric shave, Philips has introduced two new women's hair removal products: Satinelle Sensitive and Satinelle Sensitive 2-in-1 Epilators. And in depilatories, Del Labs' Sally Hansen adds two new SKUs: Sugar Wax Kits For Face and Sugar Wax Kits For Body.

                     Drug chain performance in shaving

                  $ sales    % change
Category        in millions
Razors            $321.3       19.0%
Shaving lotion/
men's fragrance    161.3        4.0
Shaving cream       69.1       11.3

Source: Information Resources Inc. for the 52 weeks ended Dec. 31, 1998

              1998 channel performance in shaving by $ sales

                Drug [*] $ sales Food $ sales Mass $ sales
Category          in millions    in millions  in millions
Razors               $358.1         $521.7       $565.0
Shaving lotion/
men's fragrance       188.7           63.0        276.0
Shaving cream          77.4          123.5        133.2

Source: Information Resources Inc. for the 52 weeks ended Jan. 3, 1999
(*.)Including independents

             Change in dollar sales by channel (1998 vs. 1997)

                Drug [*]   Food     Mass
Category        % change % change % change
Razors            13.2%    9.4%     24.2%
Shaving lotion/
men's fragrance   -2.2     0.6      10.0
Shaving cream      4.9     5.4      12.2

Source: Information Resources Inc. for the 52 weeks ended Jan. 3, 1999
(*.)Including independents