Are boys reverting to type? The latest market figures for male grooming show a slowdown in the growth of male grooming products such as deodorants, fragrances and skincare which would all suggest men have decided grooming is for girls after all.
But while value growth may have stuttered, up just 2.1% to £959.7m [Kantar Wordpanel 52w/e 16 May], this is on top of last year's growth of more than 6%. Volume growth, however, is up 5.5% on the back of heavy promotions [KantarWorldpanel].
Categories with low brand loyalty, such as deodorants, have been promoted particularly hard, with value sales up just 3% on volume growth of 7.4% [Kantar Worldpanel]. However, it was the still relatively small skincare category that received the full force of the promotional drive. This was partly as a result of a number of big skincare launches from major brands over the past couple of years, which have been supported with extensive promotions as they sought to establish themselves. Consequently, skincare value sales have risen just 2% on volume growth of 18.7% [Kantar Worldpanel]. After such intense promotional activity, can men be persuaded that grooming products are worth full price?
Some 55% of all facial skincare volume is now sold on deal compared with 48.8% the year before [Kantar Worldpanel]. One of the biggest recent launches in the male skincare category is Gillette's Series range, introduced in 2008. The range is already worth £4m, up 198.3% on the previous year [SymphonyIRI]. However, the value growth has been driven by a 263.5% hike in volume sales [SymphonyIRI] and 57% increase in the number of promotions run on the Gillette brand [Assosia 52w/e June 2010].
Gillette expanded the Series range in March this year, introducing a pre-shave scrub (see box), two after-shave balms and a moisturiser. Paul Lettice, trade communications manager at brand owner P&G, insists the range is growing the category. "72% of all spend on Gillette skincare is from new users to the category," he says.
Meanwhile, rival Unilever launched its Dove Men+ skincare range in January this year (see box) and ran 34 offers on the range between launch and June [Assosia].
"The sector has been massively battered in the past two years," argues King of Shaves founder Will King. "There's a huge hook into price promotion. People expect to buy very cheaply and grocers have played their part in that. There's a lot of value destruction going on. We need a return to people desiring brands."
Simon Duffy, founder of natural male skincare brand Bulldog, argues that to reduce the reliance on promotions, the category needs more brands with a real point of difference. Bulldog's sales grew 65.4% in the past year to £2.1m [SymphonyIRI] and the company launched its first Fairtrade products in January (see box right).
Duffy argues that, despite the plethora of big brand launches, the category lacks differentiation. "The male grooming market is incredibly boring," he insists. "Big brands all use very similar formulations, market their products in the same way and just repackage traditionally female products for men."
In response, brands are now starting to carve out men-only niches in the grooming market with products that are distinctly gender-specific. For example, last year Procter & Gamble acquired high-end male skincare brand Zirh to add to its niche male grooming brand The Art of Shaving.
Moosehead, which started out as a range of hair-styling products targeting young men, has since expanded into skincare and body products. Director John Kingham claims the most important factor to win over new customers is innovation. The brand launched its Moose Mud Face Mask 18 months ago and he claims "younger guys especially are happy to use masks on a regular basis to cleanse and invigorate their skin".
Even less adventurous consumers are still looking for novelty, he argues. The consumers the brand targets "are on the lookout for new brands they like to discover brands that are a little bit different and not just the obvious ones".
Nivea argues there's still plenty of potential in the market for brands of all sizes. Nivea For Men remains the biggest male skincare brand, with sales of £54.6m up 0.2% on last year [SymphonyIRI].
"At only 18% penetration, this category has huge growth potential," says Amy Ashton, senior category manager at Nivea owner Beiersdorf UK. "About 40% of the UK adult population buy shaving preparations and every one of them should use some kind of after-shave care, be it a balm or a moisturiser. At the moment, the category is struggling to convert shoppers to purchase."
The heavy reliance on promotions has not been limited to skincare, however, says Wilkinson Sword. "Although razor blades have not historically been heavily promoted, we are now seeing more value packs, where a razor and a pack of refills, plus sometimes a shave gel, are sold for a special price," says Karen Williams, senior product manager at Wilkinson Sword.
SymphonyIRI senior insight manager Russell Jones says he has noticed an influx of value packs from Gillette, which contain lots of blades trying to drive volume sales at an affordable price. Sales of Gillette shaving products (including razor, shaving preparations and after shaves) have fallen 3.7% to £220.9m as consumers looked to economise [SymphonyIRI].
However, Williams argues value deals and promotions do not boost blade sales in the long term. "Trials where retailers have discounted blade prices for shoppers clearly resulted in a sales drop post-promotion," she says. "Effectively the retailer discounted future blade sales, gained no additional volume and lost out on profit."
Sales of Wilkinson Sword shaving products have risen 1.5% to £27.9m [SymphonyIRI], thanks largely to strong sales of blades for its 2009 Quattro Titanium Precision three-in-one wet razor (up 24% year-on-year, the brand claims).
As we emerge from recession, razor and blade sales have now nudged up 3.4% in value, although only 0.8% in volume [Kantar Worldpanel]. And Kantar usage data suggests men are still attempting to eke a little more life out of each blade in a bid to save money.
One of the biggest winners in the drive to cut the cost of shaving has been own label, where sales of shaving products have risen 14% to £19.4m [SymphonyIRI].
Another beneficiary has been the King of Shaves range of razors and blades, called Azor. Launched in 2008, it offers a cheaper alternative to Gillette and Wilkinson Sword razors. Azor has also benefited from an eye-catching ad campaign called 'better because it bends'. Value sales of Azor have risen 42% to £3.6m [SymphonyIRI].
Value and disposable razor brand Supermax is also hoping to take advantage of trading down. Despite a global presence and the claim of being the world's second-largest manufacturer of razor blades, Supermax has low consumer recognition.
"The economic climate has been very positive for the brand, as the Supermax strategy is EDLP, with a range including razors, foams and gels that fits into the growing £1 category," says retail account manager Jo Thiselton-Dyer. The brand, which is running promotional tie-ups with TV series CSI and Emirates Airlines, has also been eating into the premium triple and quadruple-blade sector with disposable versions. "These allow consumers to trade up from the twin blades at an affordable price, and not just when products are on promotion," she adds.
Traditional favourite Old Spice has struggled in the shaving market over the past year, with value sales of its aftershave down 12.1% to £1.9m [SymphonyIRI], in part driven by a consumer switch from aftershave liquids to balms. The brand's fragrances have fared better, up 17.2% to £224,088 [SymphonyIRI] and it has launched a marketing campaign based around YouTube ads and social media.
The fragrances category as a whole has fallen 3.9% to £135.9m [Kantar Worldpanel]. This was largely due to a 2.5% fall in sales of category leader Lynx's fragrances. "During the recession, grocery retailers reduced the amount of shelf space devoted to toiletries," says SymphonyIRI's Jones. A number of Lynx fragrance SKUs were delisted during this process.
While men certainly aren't giving up on looking good they are being more careful how they spend their money. Given the category's heavy reliance on promotions, can male grooming take a leaf out of L'Oréal's book and convince men to splash out because they are worth it, too?
But while value growth may have stuttered, up just 2.1% to £959.7m [Kantar Wordpanel 52w/e 16 May], this is on top of last year's growth of more than 6%. Volume growth, however, is up 5.5% on the back of heavy promotions [KantarWorldpanel].
Categories with low brand loyalty, such as deodorants, have been promoted particularly hard, with value sales up just 3% on volume growth of 7.4% [Kantar Worldpanel]. However, it was the still relatively small skincare category that received the full force of the promotional drive. This was partly as a result of a number of big skincare launches from major brands over the past couple of years, which have been supported with extensive promotions as they sought to establish themselves. Consequently, skincare value sales have risen just 2% on volume growth of 18.7% [Kantar Worldpanel]. After such intense promotional activity, can men be persuaded that grooming products are worth full price?
Some 55% of all facial skincare volume is now sold on deal compared with 48.8% the year before [Kantar Worldpanel]. One of the biggest recent launches in the male skincare category is Gillette's Series range, introduced in 2008. The range is already worth £4m, up 198.3% on the previous year [SymphonyIRI]. However, the value growth has been driven by a 263.5% hike in volume sales [SymphonyIRI] and 57% increase in the number of promotions run on the Gillette brand [Assosia 52w/e June 2010].
Gillette expanded the Series range in March this year, introducing a pre-shave scrub (see box), two after-shave balms and a moisturiser. Paul Lettice, trade communications manager at brand owner P&G, insists the range is growing the category. "72% of all spend on Gillette skincare is from new users to the category," he says.
Meanwhile, rival Unilever launched its Dove Men+ skincare range in January this year (see box) and ran 34 offers on the range between launch and June [Assosia].
"The sector has been massively battered in the past two years," argues King of Shaves founder Will King. "There's a huge hook into price promotion. People expect to buy very cheaply and grocers have played their part in that. There's a lot of value destruction going on. We need a return to people desiring brands."
Simon Duffy, founder of natural male skincare brand Bulldog, argues that to reduce the reliance on promotions, the category needs more brands with a real point of difference. Bulldog's sales grew 65.4% in the past year to £2.1m [SymphonyIRI] and the company launched its first Fairtrade products in January (see box right).
Duffy argues that, despite the plethora of big brand launches, the category lacks differentiation. "The male grooming market is incredibly boring," he insists. "Big brands all use very similar formulations, market their products in the same way and just repackage traditionally female products for men."
In response, brands are now starting to carve out men-only niches in the grooming market with products that are distinctly gender-specific. For example, last year Procter & Gamble acquired high-end male skincare brand Zirh to add to its niche male grooming brand The Art of Shaving.
Moosehead, which started out as a range of hair-styling products targeting young men, has since expanded into skincare and body products. Director John Kingham claims the most important factor to win over new customers is innovation. The brand launched its Moose Mud Face Mask 18 months ago and he claims "younger guys especially are happy to use masks on a regular basis to cleanse and invigorate their skin".
Even less adventurous consumers are still looking for novelty, he argues. The consumers the brand targets "are on the lookout for new brands they like to discover brands that are a little bit different and not just the obvious ones".
Nivea argues there's still plenty of potential in the market for brands of all sizes. Nivea For Men remains the biggest male skincare brand, with sales of £54.6m up 0.2% on last year [SymphonyIRI].
"At only 18% penetration, this category has huge growth potential," says Amy Ashton, senior category manager at Nivea owner Beiersdorf UK. "About 40% of the UK adult population buy shaving preparations and every one of them should use some kind of after-shave care, be it a balm or a moisturiser. At the moment, the category is struggling to convert shoppers to purchase."
The heavy reliance on promotions has not been limited to skincare, however, says Wilkinson Sword. "Although razor blades have not historically been heavily promoted, we are now seeing more value packs, where a razor and a pack of refills, plus sometimes a shave gel, are sold for a special price," says Karen Williams, senior product manager at Wilkinson Sword.
SymphonyIRI senior insight manager Russell Jones says he has noticed an influx of value packs from Gillette, which contain lots of blades trying to drive volume sales at an affordable price. Sales of Gillette shaving products (including razor, shaving preparations and after shaves) have fallen 3.7% to £220.9m as consumers looked to economise [SymphonyIRI].
However, Williams argues value deals and promotions do not boost blade sales in the long term. "Trials where retailers have discounted blade prices for shoppers clearly resulted in a sales drop post-promotion," she says. "Effectively the retailer discounted future blade sales, gained no additional volume and lost out on profit."
Sales of Wilkinson Sword shaving products have risen 1.5% to £27.9m [SymphonyIRI], thanks largely to strong sales of blades for its 2009 Quattro Titanium Precision three-in-one wet razor (up 24% year-on-year, the brand claims).
As we emerge from recession, razor and blade sales have now nudged up 3.4% in value, although only 0.8% in volume [Kantar Worldpanel]. And Kantar usage data suggests men are still attempting to eke a little more life out of each blade in a bid to save money.
One of the biggest winners in the drive to cut the cost of shaving has been own label, where sales of shaving products have risen 14% to £19.4m [SymphonyIRI].
Another beneficiary has been the King of Shaves range of razors and blades, called Azor. Launched in 2008, it offers a cheaper alternative to Gillette and Wilkinson Sword razors. Azor has also benefited from an eye-catching ad campaign called 'better because it bends'. Value sales of Azor have risen 42% to £3.6m [SymphonyIRI].
Value and disposable razor brand Supermax is also hoping to take advantage of trading down. Despite a global presence and the claim of being the world's second-largest manufacturer of razor blades, Supermax has low consumer recognition.
"The economic climate has been very positive for the brand, as the Supermax strategy is EDLP, with a range including razors, foams and gels that fits into the growing £1 category," says retail account manager Jo Thiselton-Dyer. The brand, which is running promotional tie-ups with TV series CSI and Emirates Airlines, has also been eating into the premium triple and quadruple-blade sector with disposable versions. "These allow consumers to trade up from the twin blades at an affordable price, and not just when products are on promotion," she adds.
Traditional favourite Old Spice has struggled in the shaving market over the past year, with value sales of its aftershave down 12.1% to £1.9m [SymphonyIRI], in part driven by a consumer switch from aftershave liquids to balms. The brand's fragrances have fared better, up 17.2% to £224,088 [SymphonyIRI] and it has launched a marketing campaign based around YouTube ads and social media.
The fragrances category as a whole has fallen 3.9% to £135.9m [Kantar Worldpanel]. This was largely due to a 2.5% fall in sales of category leader Lynx's fragrances. "During the recession, grocery retailers reduced the amount of shelf space devoted to toiletries," says SymphonyIRI's Jones. A number of Lynx fragrance SKUs were delisted during this process.
While men certainly aren't giving up on looking good they are being more careful how they spend their money. Given the category's heavy reliance on promotions, can male grooming take a leaf out of L'Oréal's book and convince men to splash out because they are worth it, too?
TAKE-Home SnapshotMen are slapping on the skincare
l The current slowdown follows unprecedented growth for male deodorants and male skincare, but male blades & razors are back in growth. l Male deodorant remains the largest sector, and despite slowing, it still saw modest growth up 3%. This is impressive given that it is the most saturated sector being bought by the most people. l Nivea for Men is one of the strongest-growing brands due to the launch of Silver Protect. l Huge growth in male skincare was triggered by the launch of the Gillette Series skincare range the previous year. However other brands are starting to fight back with L'Oréal Men Expert launching Eye Roll-On, which it hopes will be as successful as Garnier Eye Roll-On for females. l Innovation is a key driver in blades and razors, and with Gillette launching ProGlide in 2011 the sector's return to growth should remain.Benjamin Cawthray
l The current slowdown follows unprecedented growth for male deodorants and male skincare, but male blades & razors are back in growth. l Male deodorant remains the largest sector, and despite slowing, it still saw modest growth up 3%. This is impressive given that it is the most saturated sector being bought by the most people. l Nivea for Men is one of the strongest-growing brands due to the launch of Silver Protect. l Huge growth in male skincare was triggered by the launch of the Gillette Series skincare range the previous year. However other brands are starting to fight back with L'Oréal Men Expert launching Eye Roll-On, which it hopes will be as successful as Garnier Eye Roll-On for females. l Innovation is a key driver in blades and razors, and with Gillette launching ProGlide in 2011 the sector's return to growth should remain.Benjamin Cawthray
Fusion Series Thermal ScrubLaunched: March 2010
Gillette is looking to introduce a new step, and new product, to men's shaving regime with the launch of Fusion Series Thermal Scrub. The facial scrub (rsp: £6.99) heats up the hairs on the face, making them easier to shave, the brand claims. The mild soap-free system cleans skin by removing oils (sebum) and dirt while helping to soften the hair, making it easier to cut. Small particles in the scrub then help exfoliate dead, dry skin cells providing an even, clear path for the razor and preparing the face for "the ultimate shave". Fairtrade Eco-System Shave Gel Launched: January 2010 Bulldog is adding Fairtrade products to its natural skincare brand. The brand claims it is the first Fairtrade male grooming range. The company says the Fairtrade accreditation fits well with its ethos of using natural products and avoiding nasty and unnecessary chemicals. The shave gel (rsp: £3.69) includes natural Fairtrade ingredients from around the world, including green tea from central Sri Lanka and organic shea butter from Ghana. Other offerings in the range include a Fairtrade moisturiser. Dove Men+Care Body and Face Wash Launched: January 2010 Following the disappointing performance of Vaseline Men (a number of Vaseline Men products have been delisted), Unilever is targeting the hitherto neglected 40-plus age bracket with its new Dove Men+Care range. The range encourages men to buy tailored products for their needs, instead of relying on unisex or female products, but has the advantage that the Dove brand is popular with women and is often bought by them for men. The range includes moisturising face and body washes (rsp: £2.39) and deodorants (rsp: £2.99). Quattro Titanium Body Launched: March 2010 A development of last year's Titanium Precision product, Wilkinson Sword's Quattro Titanium Body (rsp: £8.99) combines shaving and trimming body hair in one battery-powered device. The product features a 24mm body trimmer and an extended grip that claims to offer better control for trimming longer, thicker body hair. The device also includes a razor, which uses the brand's quadruple titanium-coated blades. Underneath the blades is an aloe and jojoba-infused moisturising strip to ensure a smooth finish anywhere on the body.
Gillette is looking to introduce a new step, and new product, to men's shaving regime with the launch of Fusion Series Thermal Scrub. The facial scrub (rsp: £6.99) heats up the hairs on the face, making them easier to shave, the brand claims. The mild soap-free system cleans skin by removing oils (sebum) and dirt while helping to soften the hair, making it easier to cut. Small particles in the scrub then help exfoliate dead, dry skin cells providing an even, clear path for the razor and preparing the face for "the ultimate shave". Fairtrade Eco-System Shave Gel Launched: January 2010 Bulldog is adding Fairtrade products to its natural skincare brand. The brand claims it is the first Fairtrade male grooming range. The company says the Fairtrade accreditation fits well with its ethos of using natural products and avoiding nasty and unnecessary chemicals. The shave gel (rsp: £3.69) includes natural Fairtrade ingredients from around the world, including green tea from central Sri Lanka and organic shea butter from Ghana. Other offerings in the range include a Fairtrade moisturiser. Dove Men+Care Body and Face Wash Launched: January 2010 Following the disappointing performance of Vaseline Men (a number of Vaseline Men products have been delisted), Unilever is targeting the hitherto neglected 40-plus age bracket with its new Dove Men+Care range. The range encourages men to buy tailored products for their needs, instead of relying on unisex or female products, but has the advantage that the Dove brand is popular with women and is often bought by them for men. The range includes moisturising face and body washes (rsp: £2.39) and deodorants (rsp: £2.99). Quattro Titanium Body Launched: March 2010 A development of last year's Titanium Precision product, Wilkinson Sword's Quattro Titanium Body (rsp: £8.99) combines shaving and trimming body hair in one battery-powered device. The product features a 24mm body trimmer and an extended grip that claims to offer better control for trimming longer, thicker body hair. The device also includes a razor, which uses the brand's quadruple titanium-coated blades. Underneath the blades is an aloe and jojoba-infused moisturising strip to ensure a smooth finish anywhere on the body.
PromowatchGillette pushes up promotional numbers 57%
Gillette led the charge in terms of the number of promotions this year, outstripping last year's category leader Lynx and boosting the number of promotions it ran from June 2008 to June 2009 by 57% to 359. Lynx's ongoing promotional growth ran out of steam in the same period, as it cut the number of promotions by 26 to 219 (though this is still much higher than two years ago). Dove launched into male grooming in January and has already run 34 campaigns. Average savings rose generally, with the biggest from Wilkinson Sword (£2.42) and Gillette (£2.07). Sure discounted most heavily from the previous year, with a saving of just over 47% (£1.75, up from £1.17 in 2008/9). Brands discounting for the first time included Dove, Bulldog, King of Shaves and Palmolive. Of the big four, Sainsbury's jumped to the top spot, up by 91 from the previous year to 322. Overall, total supermarket promotions fell from 929 to 831.
Gillette led the charge in terms of the number of promotions this year, outstripping last year's category leader Lynx and boosting the number of promotions it ran from June 2008 to June 2009 by 57% to 359. Lynx's ongoing promotional growth ran out of steam in the same period, as it cut the number of promotions by 26 to 219 (though this is still much higher than two years ago). Dove launched into male grooming in January and has already run 34 campaigns. Average savings rose generally, with the biggest from Wilkinson Sword (£2.42) and Gillette (£2.07). Sure discounted most heavily from the previous year, with a saving of just over 47% (£1.75, up from £1.17 in 2008/9). Brands discounting for the first time included Dove, Bulldog, King of Shaves and Palmolive. Of the big four, Sainsbury's jumped to the top spot, up by 91 from the previous year to 322. Overall, total supermarket promotions fell from 929 to 831.
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