NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, October 7, 2010

Gillette’s newest shaving system has just one blade, a light plastic handle and a sharply lower price. And it isn’t available in the U.S.

The Gillette Guard, the latest razor from the Procter & Gamble Co. unit, instead will begin hitting stores in India next week.

The move by the maker of five-bladed, battery-powered gizmos reflects P&G’s aggressive push into emerging markets for new customers and growth. That focus is forcing P&G to be more modest on scale and more flexible on price.

Gillette commands about 70% of the world’s razor and blade sales, but it lags behind rivals in India and other developing markets, mainly because those consumers can’t afford to buy its flagship products.

The stripped-down Gillette Guard is designed to be affordable. The razor costs 15 rupees, or 34 cents, and uses blades that cost five rupees, or 11 cents.