Unusual Way Gillette’s Low-Cost Razor Came to Be

by Christopher Freeburn | October 7, 2013 11:32 am

Unusual Way Gillette’s Low-Cost Razor Came to Be

ProcterAndGambleLogo Unusual Way Gillettes Low Cost Razor Came to Be[1]Five years ago, a score of executives from one of the world’s largest consumer products manufacturers made 300 visits to rural India in a bid to develop a new razor for consumers in the developing market[2].

Watching how men shaved in small Indian villages gave the executives the guidance they needed to create Procter & Gamble‘s (PG[3]) Gillette Guard, which hit retail locations in India three years ago. The product was an immediate hit and now accounts for about two-thirds of all razors sold in the country, the Associated Press notes.

The executives were particularly inspired by watching one man, who shaved without electricity, running water or a mirror, while seated on the floor of his small home.

Developing products geared to local conditions, instead of simply repackaging products made for the U.S. market, has helped P&G dramatically increase the percentage of its annual revenue generated in emerging markets.

The Indian market is a strong focus for consumer products makers. The Indian economy is growing at 3.2% annually, though poverty remains widespread. India is home to about 1.24 billion people.

Last month, P&G reduced the number of diapers in contained in packs its popular brands[4], effectively raising the price.

Shares of P&G slipped slightly in Monday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/08/ProcterAndGambleLogo.jpg
  2. develop a new razor for consumers in the developing market: http://hosted.ap.org/dynamic/stories/U/US_PROCTER__GAMBLE_THIRD_WORLD_RAZOR?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-10-05-11-51-22
  3. PG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PG
  4. reduced the number of diapers in contained in packs its popular brands: http://investorplace.com/2013/09/parents-to-pay-more-for-their-pampers-luvs-diapers/

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