Sara Marshall
14 October 2014
Assignment #3 CSR: 331
The Beard Trend and the Men’s Shaving Industry as a
Case Analysis for the Consumer Marketplace
Venture Capitalism is nothing new—but seeing opportunity in battling
large conglomerates with a stake in the shaving industry might be. Take a walk
through a market in a major city and you will notice, among the art and clothing
booths, a sprinkling of pop-ups dedicated to men’s shaving and grooming needs.
These small companies represent the tip of the iceberg that extends throughout a
variety of products and services that are being transformed by consumers’
desires for accessibility, quality, and reasonable price-points.
According to Michael Dublin, co-founder of Dollar Shave Club, men are
now more concerned about their grooming and the stigma of metro-sexuality is
gone. E-commerce sites, like Dollar Shave Club, are appealing because of their
lower prices and cutting edge products (Issac 2014). Once men begin comparing
prices, the allure of the newest Gillette razor diminishes. Once they compare
experiences, the purchase decision shifts, brand loyalty isn’t reliable, and
competition ensues.
In response to questions about a more competitive marketplace, Proctor
and Gamble released a statement to the effect that newer companies’
competition stimulates more conversation about shaving and thus is positive for
them, as the market leader (Isaac 2014). However, with the current changes in
consumer mentality, it’s unclear if Proctor and Gamble can offer what some
consumers are requesting (The New York Times 2014). Big name razors win as
far as accessibility in a literal sense, but capitalizing on trends only gets so far.
Consumers are tentatively spending more—but they’re demanding more too. It’s
not enough to just have a razor. Emerging markets in menswear suggest that
shaving is back to being a customizable style asset (Wang 2014).
Companies like Gillette can’t focus on micro-trends because marketing a
new product is an expensive endeavor. In fact, according to an article in the New
York Times, Gillette recently set aside $200 million to market its new ProGlide
razor with Flexball technology. Meanwhile smaller, heavily financed, companies
like Dollar Shave Club walk away shipping 8.8% of the razor cartridges in the
United States (Isaac 2014).
This also translates into the shaving industry’s worst nightmare: the
resurgence of the fashionable beard. From Duck Dynasty to Savil Row, it’s clear
that beards are here to stay, at least for a while. So far, larger companies like
Gillette are stuck spinning new marketing ploys to sell trimmers and shapers
while hoping that beards disappear. In contrast, the same small startups that are
nudging their way into the shaving industry are selling everything from beard oil
to face lotion based on the amount of facial hair that customers sport. Companies
like Harry’s (started by co-founder of Warby Parker, Jeffry Raider) even offer nofuss shaving supply delivery plans based on the kind of shaver that you are
(Isaac 2014).
While the future remains uncertain for the smaller start-ups battling for a
limited market-share, it’s undeniable that the big companies are missing
something. A brand alone is not enough to retain a customer in the current retail
landscape. Whether a customer is clean-shaven or taking advantage of a
trending beard, they want their grooming needs satisfied with minimal effort while
capitalizing on the current style trends. Customers can stray if products aren’t
superb quality for the price and don’t offer customizable experiences. For big
retailers to survive, they need to spend time perfecting products that offer
competitive advantages to smaller companies while creating a unique, seamless,
and encompassing customer experience.
Work Cited
Associated Press. (2014, September 29). U.S. Spending Is Up 0.5% as Economy Stabilizes. The New
York Times. Retrieved October 14, 2014 from
<http://www.nytimes.com/2014/09/30/business/economy/economy-regains-momentum-as-usspending-rises-05-percent-.html?_r=0>
Isaac, M. (2014, September 23). The New York Times: Where Profit Margins Are Hefty, Online
Upstarts Muscle In. Retrieved October 14, 2014 from
<http://www.nytimes.com/2014/09/24/technology/24shave.html>
Moreno, K. (2014, September 15) Why Do Companies Undervalue Customer Loyalty? Forbes.
Retrieved October 14, 2014 from
<http://www.forbes.com/sites/forbesinsights/2014/09/15/why-do-companies-undervaluecustomer-loyalty/>
Wang, L. (2014, June 17) No Sign of Slowing in the Global Menswear Market.
BusinessOfFashion.com. Retrieved October 14, 2014 from
<http://www.nytimes.com/2014/09/30/business/economy/economy-regains-momentum-as-usspending-rises-05-percent-.html?_r=0>