Close shave for the razor industry as stubble destroys profits

ONE of the major fashion trends of 2013 has decimated profits in this sector. Can it recover or has the face of the industry changed forever?

Gillette and Schick are sweating even more than this dude. Picture: Thinkstock.

DEAR men of Australia. Please get rid of your stubble. Yours in clean-shaven Christmas cheer - the Shaving Industry.

The above is not an actual Christmas greeting, but you can bet it's one the executives of large razor blade manufacturers would love to send.

Big Shaving is bleeding this year, as the stubble craze cuts into sales and profit expectations are slashed.

The problem is one of simple economics. The spike in facial hair means less demand for razors. Ward Klein, CEO of US-based company Energizer Holdings (which owns both Schick and Edge), recently reported that the weakness in some of the personal care categories in the US was "unprecedented".

"I'm really talking about razors and blades in particular," Mr Klein added.

Here in Australia, Big Shaving is a little more tight-lipped about its fortunes. News.com.au sent some polite inquiries to a couple of major Australian razor brands, who weren't exactly forthcoming with the sales figures.

One large razor manufacturer offered research showing that women don't like kissing men with stubble, which sounded a little like a desperate attempt to entice men to shave.

Meanwhile, a Woolworths spokesman confirmed that sales of razors were way down, and while they couldn't quantify the decline, they did offer two reasons for it:

Firstly, the increasing acceptability of beards and stubble in the workplace has meant that more men have the freedom not to shave. This, in turn, has led to a trend towards electric shaving products which trim stubble and beards rather than removing them entirely.

Secondly, disposable razors have gotten better. So people don't need to buy them as often.

Commsec's Tom Piotrowski is a bit of an exception in a largely beard and stubble-free industry. But maybe not for long.

The bad news for Big Shaving is that the beard trend is set to continue in 2014. Health & beauty writer Victoria Hannaford says beards are yet to cross over fully to the mainstream - and that many industries which are traditionally uptight about appearances could yet succumb to stubble in 2014.

The good news for Big Shaving is that the facial hair frenzy will end one day, as all trends do. When stubble loses its edge, they'd better hope their products have got it.