The U.S. Razor market is an extremely competitive industry. It can be broken
into several different categories of different shaving and hair removal products.
These products include: nondisposable razors, refill cartridges, disposable razors,
shaving cream, and depilatories (Appendix B). The market for nondisposable razors
and refill cartridges has experienced growth since 2007. This growth is expected to
continue and can be attributed to technological advancements and new product
introductions, especially those within the super-premium segment of the industry
(Appendix A). The super-premium segment is growing faster than any other part of
the industry. As a result, many competitors have entered and created a strong rivalry
amongst the health and beauty companies (Appendix C).
In 1962 Paramount Health and Beauty Company entered into the
nondisposable razor market. Its product lines Pro and Avail were extremely
successful, thus establishing Paramount as a respected brand in the industry. Fast-
forward to 2009 and Paramount is a global consumer product giant with $13 billion
in worldwide sales and $7 billion in gross profits. During that same year, sales from
its nondisposable razors and refill cartridges contributed to $170 million in revenue,
$92 million gross profit, and $26 million operating profit within the U.S (Appendix
E). However, with Pro positioned in the moderate segment of the product category
and Avail value oriented, Paramount needed a product that would reach the growing
super-premium consumer base and would compete against other leaders in the
market (Appendix D). Hence came the creation of the Clean Edge line of
nondisposable razors and refill cartridges.