Less Men Shaving Means Shaved Profits for P&G
The beard is back. And no, we don’t mean Mike Napoli of the Boston Red Sox, although his beard is back too. We mean more in general, the beard is back, and P&G’s profits seem to have been smothered by it
Beards were big back in good old 70s and life in that era seemed to be a lot more stress-free and relaxed. The bidnessmen think that this was all because of having a mighty beard. Back then, having a beard equaled to being a chick-magnet, and rightly so. Here are some examples of some famed chick-magnets:
Yes, we knew you would be overwhelmed. So, moving on…
The beard trend is making its way back thanks to global movements such as Movember and Decembeard.
Movember is an annual event involving the growing of moustaches during the month of November to raise awareness of men's health issues, such as prostate cancer and other male cancers. Decembeard takes it a step further and encourages men to grow beards, also to raise awareness about men’s health issues. The bidnessmen think Januhairy should be next.
But hey, it’s not just about a good cause. We can totally dig that there are many who think it’s the beard that separates the men from the boys. Of course the bidnessmen don’t need any of that…
Unfortunately, not everyone is able to handle the sheer magnificence of the beard. Case in point: P&G (PG), which recently reported a decline in sales of its Gillette brand of razors. They just couldn’t compete against this sublime art of manliness called the beard. They had to blame it on something though.
To counter this growing trend of beards, P&G has been actively promoting the increasingly popular concept of man-scaping where men shave their bodies. P&G had also filed for the trademark, “Gillette Body” last year.
P&G’s grooming business, which includes shaving cream, razor blades and deodorant, accounted for 9.5% of the company’s sales and generated $2.12 billion in revenue during the quarter ended Dec 31, but sales of non-disposable razors and blades fell 7.8 percent in the 12 weeks through Dec. 21. But Movember and Decembeard are not the only factors to blame for the decline in P&G’s sales.
Unfavorable economic conditions have also led to cash-strapped young men opting for disposable razors such as Schick and Bic over Mach 3 and Fusion models that are considered a bit pricey.
The beard trend was considered hipster just five or 10 years ago, but now it does seem to be making a comeback and has been seen on circulars from major retailers like Macy’s, Target and JCPenney.