Movember, the non-profit charity initiative to get men to let their mustaches grow to raise money for prostate cancer research, took some of the blame for softness in razor sales when P&G reported financial results today.
In an interview with the Financial Times, P&G Chief Financial Officer Jon Moeller blamed the razor market's "contraction in developed regions" cited in P&G's press release in part on "reduced incidence of facial shaving, and that was exacerbated by the quarter we were just in because of the prostate-cancer related movement in North America not to shave facial hair in the month of November."
P&G’s grooming business, which includes shaving cream, razor blades and deodorant, generated $2.12 billion in revenue during the quarter ended 31 December and accounted for 9.5% of the company’s sales. Despite the fact that the division's sales rose 3% (not including currency effects), sales of non disposable razors and blades fell 7.8% in the 12 weeks through to 21 December.
P&G, which bought Gillette in 2005 for $57 million, said it was hurt by the growing popularity of disposable razors, more associated with its rival Bic.
Movember, which has become increasingly improper among international rugby players, was born in a Melbourne pub in 2003 when a group of friends decided to grow a moustache for charity. Since then, it has spread to more than 20 countries, raising £92 million for prostate and testicular cancer charities in 2012.
The Financial Times also said that the drop in sales reflected the changes in male habits and relaxed dress codes in some offices. "Three-day stubble and bushy Brooklyn beards are growing in popularity, and cash-strapped consumers are balking at the perceived high cost of razors such as Gillette’s top-of-the-line Fusion brand".
© 2014 - European Supermarket Magazine by Enda Dowling
