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Gillette Competitors (12)
The Gillette Company was founded by King C. Gillette in as a safety razor manufacturer. Under gillette investments llc leadership of Colman M. Mockler Jr. Gillette’s brands and products were divided between the two accordingly. The Gillette company and brand originate from the late 19th century, when salesman and inventor King Camp Gillette came up with the idea of a safety razor that used disposable blades. Safety razors at the time were essentially short pieces of a straight razor clamped to a holder.
Floor Size Analysis
Industry Consumer Packaged Goods. Founded Headquarters Boston, Massachusetts. The company’s razors are used by million men in more than million countries, according to Euromonitor. Sales were flat in
Using our data
The Gillette Company was founded by King C. Gillette in as a safety razor manufacturer. Under the leadership of Colman M. Mockler Jr. Gillette’s brands and products were divided between the two accordingly. The Gillette company and brand originate from the late 19th century, when salesman and inventor King Camp Gillette came up with the idea of a safety razor that used disposable blades.
Safety razors at the time were essentially short pieces of a straight razor clamped to a holder. The blade had to be stropped before each shave and after a time needed to be honed by a cutler. Painter encouraged Gillette to come up with something that, like the Crown cork, could be thrown away once used. While Gillette came up with the idea indeveloping the concept into a working model and drawings that could be submitted to the Patent Office took six years.
Gillette had trouble finding anyone capable of developing a method to manufacture blades from thin sheet steelbut finally found William Emery Nickerson, an MIT graduate with a degree in chemistry. The company had issues getting funding until Gillette’s old friend John Joyce invested the necessary amount for the company to begin manufacturing.
During its first year of operation, the company had sold 51 razors and blades, but the second year saw sales rise to 90, razors andblades.
The company was renamed to the Gillette Safety Razor Company in and it quickly began to expand outside the United States. In the company opened a sales office in London and a blade manufacturing plant in Paris, and by Gillette had a blade plant in Canada, a sales operation in Mexico, and a European distribution network that sold in many nations, including Russia. Due to its premium pricing strategy, the Gillette Safety Razor Company’s razor and blade unit sales grew at a modest pace from to Disposable razor blades still weren’t a true mass market product, and barbershops and self-shaving with a straight razor were still popular methods of grooming.
Among the general U. This changed once the United States declared war on the Central Powers in ; military regulations required every soldier provide their own shaving kit, and Gillette’s compact kit with disposable blades outsold competitors whose razors required stropping.
Gillette marketed their razor by designing a military-only case decorated with U. Army and Navy insignia and in the company sold 1. Inthe U. Gillette’s sales rose to 3. As a consequence, millions of servicemen got accustomed to daily shaving using Gillette’s razor.
After the war, Gillette utilised this in their domestic marketing and used advertising to reinforce the habit acquired during the war. From toGillette’s unit sales increased tenfold. The company also expanded its overseas operations right after the war by opening a manufacturing plant in Sloughnear London, to build New Improved razors, and setting up dozens of offices and subsidiaries in Europe and other parts of the world.
Gillette experienced a setback at the end of the s as its competitor AutoStrop sued for patent infringement. The case was settled out of court with Gillette agreeing to buy out AutoStrop fornon-voting shares.
AutoStrop still agreed to the buyout but instead demanded a large amount of preferred stock with voting rights. The merger was announced on October 16,and gave AutoStrop’s owner Henry Gaisman controlling interest in Gillette. The company had fallen behind its competitors in blade manufacturing technology in the s and had let quality control slip while over-stretching its production equipment in order to hurry a new Kroman razor and blade to market in InGillette apologized for the reduction in blade quality, withdrew the Kroman blade, and introduced the Blue Blade initially called the Blue Super Blade as its replacement.
In Gillette introduced the Thin Blade, which was cheaper and about half the weight of the Blue Blade, even though it cost almost as much to manufacture. The Thin Blade became more popular than the Blue Blade for several years during the Second World War due to high demand of low-cost products and the shortage of carbon steel.
Though competition hit Gillette hard in the domestic market during the Great Depression, overseas operations helped keep the company afloat. AutoStrop’s Brazilian factory allowed Gillette to start expanding into the Latin America, in England the Gillette and AutoStrop operations were combined under the Gillette name, and the company built a new blade manufacturing plant in London.
InGillette’s Berlin factory produced 40 percent of Germany’s million blades and retained a 65 to 75 percent share of the German blade market. The Second World War reduced Gillette’s blade production both domestically and internationally.
As a result of the war, many markets were closed off, German and Japanese forces expropriated the company’s plants and property, and Gillette’s plants in Boston and London were partially converted for weapons production. By the end of the war, servicemen had been issued Gillette also assisted the U. The company also manufactured razors that concealed money and escape maps in their handles, and magnetic double-edge blades that prisoners of war could use as a compass. During the post-war years, Gillette began to quickly ramp up production by modernizing its major manufacturing plants in the United States and England, expanding the capacity of several foreign plants, and re-opening plants closed during the war.
The company opened a new plant in Switzerland and began manufacturing blades in Mexico City. ByGillette’s share of the U. In Gillette introduced the Gillette Super Speed razor and along with it the Speed-pak blade dispenser the company had developed during the war.
The dispenser allowed the blade to be slid out of the dispenser into the razor without danger of touching the sharp edge. It also had a compartment for holding used blades. In Gillette bought the home permanent kit manufacturer The Toni Company [26] and later expanded into other feminine products such as shampoos and hair sprays.
In the company bought the ballpoint pen manufacturer Paper Mate. Television advertising played a big part in Gillette’s post-war growth in the United States. By the mids, 85 percent of Gillette’s advertising budget was used for television advertising.
Although Gillette’s immediate priority after the war was satisfying U. However, the Cold War restricted Gillette’s operations in many parts of the world and closed entire markets the company would’ve otherwise entered in Russia, China, Eastern Europe, Near East, Cuba, and parts of Asia. More and more countries demanded local ownership for foreign enterprise in exchange for continued operation or entry into their markets.
Outside the U. Some of Gillette’s joint ventures included a 40 percent Gillette 60 percent Malaysian mini-plant operation that began production inand an Iranian manufacturing plant with 51 percent government ownership. The Iran plant was one of Gillette’s largest and most modern factories until the Iranian Revolution of when Ayatollah Khomeini rose into power and American businesses were targeted as enemies of the new government, forcing Gillette to abandon the operation and withdraw from the country.
InGillette introduced the Super Blue blade, the company’s first coated blade and the first significantly improved razor blade since the Blue Blade of the s. The new blade was coated with silicone and in Gillette’s laboratory testing produced much more comfortable and close shaves by reducing the blade’s adhesion to whiskers. By the end ofGillette’s double edge blade market share had rise to 90 percent and the company held a total razor blade market share of 70 percent. Inroughly two years after the introduction of the Super Blue blade, Wilkinson Sword introduced the world’s first razor blade made from stainless steel.
Wilkinson’s introduction took Gillette by surprise and the company struggled to respond as its smaller rivals, Schick and the American Safety Razor Companycame out with their own stainless steel blade. However, during the development of the silicon coating for the Super Blue gillette investments llc, Gillette had also discovered the method of producing coated stainless steel blades that Wilkinson Sword was using and managed to patent it before Wilkinson did.
The English company was forced to pay royalty to Gillette for each blade it sold. Gillette hesitated in bringing its own stainless steel blades to market as Super Blue had been a huge success and replacing it with a longer-lasting blade would’ve reduced profits. The company eventually brought the Gillette Stainless blade to the market in Augustabout a year after Wilkinson’s stainless blades. As a result of the affair, Gillette’s share of the double-edge blade market dropped from 90 percent to about 70 percent.
Gillette also introduced the Techmatic, a new type of razor that used a continuous spool of stainless blade housed in a plastic cartridge. The success of the coated Super Blue blades marked the start of a period when chemistry became as important metallurgy in Gillette’s blade manufacturing. The Super Blue’s coating was a result of teamwork between the Gillette’s British and American scientists. The development of Gillette’s first twin-blade razor began in early in the company’s Reading laboratories in England when a new employee Norman C.
Welsh experimented with tandem blades and discovered what he called the «hysteresis effect»; a blade pulling the whisker out of the hair follicle before cutting it, and enabling a second blade cut the whisker even shorter before it retracted back into the follicle. For six years afterwards, Welsh and his colleagues worked on a means of utilizing the hysterisis effect, almost exclusively concentrating on what would later be known as the Atra twin-blade.
The Atra razor featured two blades set in a plastic cartridge with edges that faced each. Using the razor required the user to move it in an up-and-down scrubbing motion, and whiskers were cut on both the up and down strokes.
Another twin-blade system with blades set in tandem, codenamed «Rex», also existed, but it had too many technical problems and was behind Atra in development. In consumer tests, the Atra razor had outperformed existing razor systems, but Gillette’s marketing executives feared the razor would meet resistance among shavers due to the unfamiliar scrubbing motion required to use it.
Even though the Atra project was so far along in mid that packaging and production machinery was nearly ready for a full market introduction, Gillette decided to start a development drive to finish Rex instead as it didn’t require learning a new way to shave.
The Trac II captured the premium shaving market and came out in time to counter Wilkinson Sword’s Bonded Blade system that utilised single-blade cartridges. The razor was first brought to market in Greece, where it sold well, after which it was introduced to Italy and many other European countries. Gillette hurried to develop their own disposable before Bic could bring their razor to the United States. Gillette designed a single-blade razor similar to Bic’s but soon abandoned the concept in favor of a razor that was essentially a Trac II cartridge molded into a blue plastic handle.
Gillette introduced this disposable as the Good News inabout a year before Bic’s razor reached the United States, and managed to establish market leadership once Bic and other competitors came to market.
Good News was released under various names in Europe and was equally and sometimes even more successful than Bic’s razor. Gillette quickly brought its razor to markets Bic hadn’t yet reached, such as Latin America where the razor was known as Prestobarba. The less expensive variants were differentiated from the blue Prestobarba by manufacturing them from yellow plastic, and in addition they weren’t advertised.
The strategy was successful and later market arrivals were unable to gain a major foothold. Once the approach proved to be a successful one, Gillette’s subsidiaries in Russia, Poland, and multiple Asian and Near Eastern markets began utilising the same strategy.
While Gillette managed to retain market leadership against Bic and other competitors, the popularity of disposable razors, their higher production cost compared to cartridges, and price competition eroded the company’s profits. Gillette had at first hoped that disposables would take no more than 10 percent of the total razor and blades market, but bydisposables accounted for more than 27 percent of the world shaving market in terms of unit sales, and 22 percent of total revenue.
Symons began steering Gillette into a different direction after becoming the director of Gillette’s European Sales Group in In Symons’s view, the issue was Gillette’s attempt to compete with Bic in the disposables market, which was eating into the sales of its more profitable cartridge razors. The new marketing strategy, combined with cutting costs and centralizing production increased profits. The razor became a best-seller in the United States during its first year and eventually became a market leader in Europe.
The first safety razor using the new disposable blade went on sale in In the Gillette Blue Blade, so-named because it was dipped in blue lacquer, was introduced. It became one of the most recognizable blades in the world.
Gillette Valuation and Funding
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