The grocery men’s care category has grown 13.5% in the past two years, equating to increased sales of more than $40m in a category where blades and razors account for 52% of the total value.
Latest figures from ACNielsen’s Grocery and Pharmacy Report, which reflect supermarket and pharmacy sales—or 90% of the men’s care category—show that total sales of men’s care products have grown from $288m in August 2002 to $330m in August 2004, driven by premium-priced razors and blades.
Gillette Australia, which holds nearly 50% of the value share in the men’s care category—more than double the share of its nearest rival Unilever—says the company’s Mach 3 and Mach 3 Turbo brands continue to dominate the blades and razors segments of the category.
In the past year to August, annual total sales of men’s care products increased 6.4% or $20.2m, with Gillette’s share of this at $11.6m.
According to Gillette business manager of grooming products Cameron Bruce, the Mach 3 family’s sales of blades and razors grew by $9m—representing 73% of the $12.3m growth in the razor/blades segments during the 12 months to August 2004.
The new competitor for Mach 3 is Energizer Australia’s newly released Schick Quattro, a razor with four blades, which should provide strong competition for the three-blade Mach 3.
Bruce says razors and blades are increasing in sales value due to the introduction of premium products in a market that is declining in volume sales. The category is declining year on year in volume by 1.3%, but the value is increasing significantly, up 7.4 % from the last period based on scan sales.
“Gillette and our competitors are developing more premium, expensive razors and blades. This is where the market is headed—both men and women are trading up. They want better products and will pay a premium price for them.”
The other significant growth area in men’s care products is deodorants, with sales increasing by $8m in the 12 months to August 2004. Deodorants now account for nearly 33% of the men’s care market with Unilever’s Rexona easily dominating that segment. Shaving preps, post-shave, and skincare products account for 11%, 3.3% and 0.7% respectively.
