Shaving and deodorants

Drug Store News, May 20, 1996

Segmenting works in other categories, so why not in shaving? Manufacturers are proving that by aggressively targeting specific niches, they can entice consumers to trade up to higher-priced shaving products.

The big news in the category is the way women's shave gels and high-end refillable razors are taking off. Building on the success of Gillette's Sensor for Women and Schick's Silk Effects, the women's shave segment is growing by leaps and bounds.

Gillette's SensorExcel for Women hitting retail shelves now, should give the women's shave segment the next big boost. SensorExcel, now Gillette's flagship brand, has certainly done that for the men's shave category.

Gillette's first upgrade to the women's category, Sensor for Women, already holds the position as the world's No. 1 female refillable shaving system. So retailers have high hopes for what Gillette's newest product can do for category profits.

Retailers say that although sales of Excel products cannibalize sales of other products, they're happy to see consumers trade up. "I do notice a shift from disposable to replaceables," said one retailer. "That's OK since it's a higher ring."

The trend toward higher-ticket razors explains why unit sales were down more than dollar sales. Units declined 6 percent in drug stores last year while dollar sales dipped 0.5 percent to $307.1 million.

If manufacturers and retailers have their way, consumers will be spending even more as they trade up to refillable and disposable systems designed to fit their specialized needs.

Earlier this year, Warner-Wellcome introduced Schick Tracer FX, a system for men with sensitive skin. On the other end of the spectrum, BIC introduced the disposable Tough Beard Shaver for men with heavy beards. And Gillette's new intro in the disposable segment, Custom Plus Pivot, is a high-end product that promises improved performance.

Specialized products with higher price points gave the shave cream segment a boost. While shave cream unit volume dipped 2 percent in drug stores, dollar sales were up 2.3 percent to $74 million.

Since S.C. Johnson's Skintimates line of shave products proved that shave gels targeted to women can add profit and incremental sales to the category, retailers have been adding additional products for women to their shelves.

Gillette's two Satin Care shave gel products for women have been so successful that the company has added two new SKUs to the line. And Pfizer recently introduced Barbasol Pure Silk for women.

Dollar sales and unit sales of shaving lotion and men's fragrances were down nearly 9 percent in drug stores and dipped nearly 4 percent across three outlets last year. Nevertheless, Gillette is planning two new line extensions to its Series line. A skin balm and aftershave lotion in the Pacific Light scent will be added; the products include more skin care benefits. Pacific Light's scent is a healthy, light fragrance, according to Gillette spokesperson Michele Szynal. CKone- and Polo Sport-influenced scents are expected to become a bigger part of the segment as men opt for lighter, fruitier fragrances.

Deodorant dipped

Deodorant dollar sales were down nearly 5 percent, and unit sales were down 5 percent in drug stores last year. Food dominated the category with a 41.5 percent share, followed by mass merchandisers, which had a 33.8 percent share. Drug stores garnered a 24.7 percent share of the category.

Retailers say that no new trends are obvious, although the category desperately needs some excitement. The new click delivery system pioneered by Brut Actif holds some promise of something new to attract consumer attention.

Clear gels continue to be popular. One retailer estimates that half his category sales are in clear gel deodorants and antiperspirants. In women's deodorants, baby powder scents continue to lead.