P&G revamps online razor sales, goes on-demand with Gillette

Procter & Gamble has overhauled its online Gillette business, offering customers the new option of on-demand purchases or the traditional subscription service.

Previously Gillette Shave Club, P&G has redubbed the unit Gillette On Demand that features an industry-first option for customers to order new cartridges as needed by simply texting the word "BLADES."

P&G, which cut its razor prices this spring to better compete with online rivals such as Dollar Shave Club and Harry's, is aggressively courting subscription customers frustrated with getting too many blades in the mail. The company's research says 41 percent of former subscription customers complain they got more blades than they needed.

“Gillette On Demand’s as-needed ordering capabilities and its convenient subscription options give guys smart choices, not trade-offs," said Mark Jeffreys, Gillette's brand director. "This new service puts them in control without having to choose between convenience and flexibility, or between great quality and value."

Lori Powers, CEO of local marketing firm the Powers Agency, said it was telling Gillette renamed its digital razor business to stress its flexibility to offer razors without a subscription. Powers' agency is not involved with the P&G initiative.

"They're trying to one-up their competition," Powers said, adding the consumer products giant was also clearly courting digitally-centric and convenience-obsessed Millennial customers making blades available via a one-word text message.

"Texting is a fantastic way to engage Millennials," Powers added. "Their generation grew up with this type of convenience. It's not just nice to have, they expect this."

P&G is under pressure to preserve Gillette's market dominance as recent sales data has shown customers inclined to buy cheaper products. Company executives also bemoan more men growing facial hair.

In February, company officials announced that some Gillette prices would drop as much as 20 percent depending on the product and pack size, while other razors will see no change in price. Officials said the change came as P&G sees gaps between its highest-priced razors and lower-tier products.

Online sales – both directly by P&G, but also by retailers selling their products – are a growing part of company sales. Last month, P&G executives disclosed online sales of all brands now account for 5 percent of total revenue or more than $3 billion.

Gillette anchors P&G's $6.8 billion grooming business that includes other razor brands, such as Fusion, Mach3, Prestobarba and Venus and electric shaver brand Braun. Worldwide, P&G's shaving business enjoys nearly a 65 percent share of the market.