Insight by Leah

Procter & Gamble announced its second recent acquisition of another men’s grooming company, Zirh, a men’s line of skin care and fragrances sold in specialty and department stores throughout the U.S.  This additional purchase confirms P&G’s intention to "win with men" and emphasizes its aggressive push towards dominance in this category.  P&G already owns Gillette and recently bought The Art of Shaving.  Although Zirh is a smaller, more niche brand, as the Group President for P&G Male Grooming stated Zirh’s "super-premium positioning and product lineup is a perfect complement to our portfolio."  As well, this purchase highlights P&G’s desire to control more of its retail channels, and to focus as it had not done in the past on higher end retail channels where margins are not typically as squeezed (versus sales through big box retailers like Walmart).  It is evident that P&G believes the men’s grooming market is an untapped goldmine.

Read the full article.

Insight by Leah

In an effort to expand into the premium market for men’s product, P&G completed its acquisition of the The Art of Shaving.  P&G has not been shy about it’s recent strategy to "win with men" and has made an effort to diversify and improve its beauty division sales with the purchase of mass brand Gillette in 2005.  However, the purchase of The Art of Shaving firmly plants P&G in the prestige sector now as well since The Art of Shaving has 36 retail outlets and 600 retail partners, which include Saks Fifth Avenue, Sephora, Bloomingdale’s and Macy’s, where it competes against Molton Brown, Jack Black and Acqua di Parma.  As well, in an interesting sidebar, P&G and The Art of Shaving both noted that neither has fully exploited the Internet yet as an effective sales channel – it currently accounts for only 10% of The Art of Shaving’s sales. 

WWD Excerpt:

Procter & Gamble Co., which recently made the phrase “win with men” an incessant company mantra, is now fully armed to target the premium male shopper with its Monday purchase of the prestige grooming firm The Art of Shaving.  Details of the deal were not disclosed; however, industry sources estimate P&G likely paid in the $60 million range for the manufacturer and retailer of shave and skin care items, twice the Miami-based firm’s 2008 annual sales. Read the complete article here.