Topic > Gillette - 976

The production of hair care and hair removal accessories is an ever-expanding market that is growing rapidly. The conversion rate of consumers who prefer modern methods to traditional ones is high. Even though Gillette has a major share of the market, the plan is to expand further to capture the market where it is lacking, which is cheap, low-priced branded products. The Gillette company, founded in 1901 in the United States, gradually expanded its business to other parts of the world. and now it is established in almost all countries. Its expansion has been facilitated through the combination of corporate and regional operating units. Gillette entered Indonesia in 1972 through a joint venture. While there has been excellent growth in the Indonesian market in 1995, there is potential to expand it further in 1996 and beyond. • In 1995 Gillette's market share was 48%. In 1996 the market share is expected to be 50%. • Gillette blade sales increased 17% from 1994 to 1995 • In 1995 Gillette sold 115 million blades (100 million double-edged) and total shaving product sales were $19.6 million . Gillette Indonesia's high-margin disposable products and systems are expected to increase to approximately 20 percent of units in 1996. In 1995 sales in the five major urban centers of Jakarta, Bandung, Surbaya, Semarang and Medan accounted for 60% of Gillette's sales. razor in 1995CompetitionGillette faces 2 types of competition. Direct competition comes from established low-priced blades available from other companies and indirect from traditional shaving methods. Gillette faced direct competition from local brands, Bic and Schick. In double-edged blades Gillette faced competition from low-end blades imported from Eastern Europe and China (Tatra, Super Nacet and Tiger). In the disposable sector its competitors were Bic, USA and Bagus, a local brand. But because sales volumes were low, the market was not intense. In high-end products Gillette faced competition from Schick. Gillette holds a 90% market share in the high-end segment. The prices of Gillette products were sometimes four times higher than those of the competition. Gillette also faced indirect competition from substitutes such as wet or dry knives. Besides the fact that Indonesia is a growing market, there is a possibility that other players will enter the market in the future. In a competitive market with local brands, Gillette differentiates itself from the competition with better quality and reliability of their products. Furthermore, more than half of the population interviewed on the incidence of shaving shaves a maximum of 4 times a month.