The Rising Influence of Rising Affluence

[DewDiligence]

PG/Gillette’s market share is eroding due to cheaper competition:

https://www.wsj.com/articles/gillette-bleeding-market-share-cuts-prices-of-razors-1491303601

The Procter & Gamble Co. unit hopes to stop defections of its U.S. customers to online startups like Dollar Shave Club and Harry’s [both now owned by UL] that sell lower-priced razors and blades.

Gillette’s plan to cut prices by as much as 20% jolted Wall Street. “An act of desperation on Gillette?” asked Barclays analyst Lauren Lieberman, in a research note soon after the announcement in February by P&G.

New data show Gillette has lost U.S. market share for six straight years. Its share of the men’s-razors business fell to 54% in 2016, down from 59% in 2015 and more than 70% in 2010…

PG’s paying $57B for Gillette in 2005 is looking like a mistake.

p.s. See tip in the next post.