Some food (red meat?) for thought:
https://www.bizjournals.com/cincinnati/news/2019/04/23/should-p-g-exit-the-shaving-business.html
https://www.bizjournals.com/cincinnati/news/2019/04/23/should-p-g-exit-the-shaving-business.html
Should P&G Exit the Shaving Business?
- Thread starter bobmsp
- Start date
thanks, but why red meat?
I dont think they should or will exit the shaving business for 2 reasons
1.- they still make profit, not as much as they want to, but still profit.
2.- I am glad is not a monopoly, but with them in the game keeps the competitors offering better prices and better quality products.
Good read by the way.
1.- they still make profit, not as much as they want to, but still profit.
2.- I am glad is not a monopoly, but with them in the game keeps the competitors offering better prices and better quality products.
Good read by the way.
Comparing one quarter to the same quarter last year is silly. The variance is too big to even think about the small change. Still, male grooming products is only 10% of their profits and the smallest of all their products.
Penetration into China was up 7% last year and continuing to improve. People will likely switch from wet shaving products to cartridges as they have in other developing countries. Most likely, at some point P&G will open a factory or an assembly line in an existing factory in China to avoid tariffs, etc.
In my opinion, Gillette's greatest competition is beards. That fad will change. When it does, they will likely sell more shaving products.
P&G has a fiduciary responsibility to make as much money as possible. They will reallocate their assets to do this. If that means selling off Gillette to get money to invest more profitably elsewhere, they will do so.
I'll give my final analysis in five years.
Penetration into China was up 7% last year and continuing to improve. People will likely switch from wet shaving products to cartridges as they have in other developing countries. Most likely, at some point P&G will open a factory or an assembly line in an existing factory in China to avoid tariffs, etc.
In my opinion, Gillette's greatest competition is beards. That fad will change. When it does, they will likely sell more shaving products.
P&G has a fiduciary responsibility to make as much money as possible. They will reallocate their assets to do this. If that means selling off Gillette to get money to invest more profitably elsewhere, they will do so.
I'll give my final analysis in five years.
If they do spin it off I would imagine Edgewell Personal Care will buy it, lessening competition even further in that space.
AimlessWanderer
Remember to forget me!
Their mission is to get as much of my money as possible. My mission is to give them as little of my money as possible.
I am winning.
I don't particularly care who I get my products from, so long as I am happy with the quality and performance, and feel that I am getting value for money. In the shaving realm, that's Gillette SharpEdge and Astra SP blades. The rest of my blades are made by other companies. I currently have maybe £8 or £9 worth of P&G blades, and won't need more DE blades for roughly 20 years.
The only other P&G product that I am aware that I buy, but not exclusively, is Fairy washing up liquid.
I am winning.
I don't particularly care who I get my products from, so long as I am happy with the quality and performance, and feel that I am getting value for money. In the shaving realm, that's Gillette SharpEdge and Astra SP blades. The rest of my blades are made by other companies. I currently have maybe £8 or £9 worth of P&G blades, and won't need more DE blades for roughly 20 years.
The only other P&G product that I am aware that I buy, but not exclusively, is Fairy washing up liquid.
I doubt you're being missed, AW. 
totally agree with this statement
In the meantime, I'm seeing the store shelves fill up with beard balm, beard oil, beard shampoo, trimmers and shapers. I'm sure some of them are P&G-owned.
Guess I'm wrong. Thanks.
Doubt that even if P&G is selling beard balm that it has the market share it does in razors and carts or has the repeat business they have in carts.
They should do whatever is in the best interests of their shareholders. If they have better uses for that capital, they should leave that business. If not, they shouldn't.
P&G still makes a ton of money and dominates the shaving game, so no, they shouldnt exit the market. As much as we all hate to admit it, Fusions and shave gel dominates the market and traditional wet shaving is a fraction of a percent of that market.
If I were them, I might re-think the values-signaling marketing approach they dipped their toe in to test the waters with recently.
But other than that, if they make money, they make money. And if they offer a good product, I will buy it [at a reasonable price]. This will likely be in the form of shaving creams they develop to compete with Cremo Cream, etc. What they charge for five replacement Fusion cartridges at Kroger is what I could spend for 2 years of shaves on DE blades. Their prices are a constant source of amusement and incredulity for me.
But other than that, if they make money, they make money. And if they offer a good product, I will buy it [at a reasonable price]. This will likely be in the form of shaving creams they develop to compete with Cremo Cream, etc. What they charge for five replacement Fusion cartridges at Kroger is what I could spend for 2 years of shaves on DE blades. Their prices are a constant source of amusement and incredulity for me.
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I bought shares via their direct investment program 20+ years ago. The stock pays a nice dividend. 
They should exit the moral superiority business.
AA
AA
Gillette has seen far leaner times (1930's - 1940's) and they will survive this one as well just as Ford, who started two years later, has.
Their (Gillette/P & G) marketing is aimed at folks 50 years younger than I. Does not bother me a bit. OTOH, Subaru's marketing annoys the heck out of me. Go figure.
If treating others respectfully is morally superior, I’m all for it. I drive a Subaru.
Did you buy the (apparently optional in this neck of the woods) turn signals?
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