P&G Innovates on Razor-Thin Margins

If you shaved today, either in the U.S. or in India, you probably used a Gillette razor. Gillette (now a brand of P&G), reportedly has had a U.S. market share of more than 80%, with Schick a distant second. Even more remarkably, they achieved this without resorting to price competition. The blade cartridges for its latest-and-greatest razor, the top-selling Fusion ProGlide, retail for around $4 each, leaving Gillette with what must be incredibly lucrative gross margins.

But that is not the story in developing markets, where these top-of-the-line products don't fare nearly as well.

Read entire post at Harvard Business Review>>