Gillette creates a little buzz with its new razor

NEW YORK -- Gillette Co. yesterday unveiled its newest razor -- one equipped with a battery-powered pulsating handle. Gillette said the new Mach3 "M3Power" unit outperformed its top-selling Mach3 Turbo in consumer tests on 68 measures, including

closeness, smoothness, and comfort. The Boston company's executives also hailed the new razor, yet another addition to the Mach3 family, as bringing a whole new element to the experience of shaving: the feeling of being massaged. "M3Power boasts the closest, most thorough shave with less irritation than ever before," said Peter K. Hoffman, the president of Gillette's blades and razor business. "We're redefining wet shaving."

Just days ago analysts and investors reacted with skepticism to rumors of a vibrating handle. The idea of an unsteady hand and sharp blades seemed an invitation for nicks, cuts, and lawsuits. But yesterday after the unveiling, they gave Gillette the benefit of the doubt.

"You have to believe Gillettetested everything,"said Andrew McQuilling,an analyst with UBS Securi-ties LLC in New York. "It's a funidea -- that with a little vibration,you could draw the hair straighter." The M3Power's battery-powered motor

inside the handle causes the razor to vibrate gently in the hand. According to Gillette, the pulsations pull the skin taut, allowing the razor to cut closer to the hair. They also make hairs stand on end, eliminating the need for repeated strokes to cut stubble lying flat against the skin or growing in different directions. Shaped much like other Mach3 razors, the M3Power's handle is slightly thicker than its predecessors and has electric green accents rather than the black or gray accents found on other Mach3 handles. Gillette chose the electric green for its association with high-tech devices and video games.

The M3Power blades are also coated with a new "thin uniform telomer" coating. Though blades are coated now, the coating tends to be uneven. The more even coating provides a smoother, more comfortable shave, Gillette said. In all, the new razor is protected by 62 patents.

Gillette said the new product does not require any significant additional capital investment, though it wouldn't disclose the exact amount of that investment.

The company can manufacture the new razor and blades by modifying existing production lines for Mach3. And for the time being, production won't require more people or infrastructure. The M3Power blades will be made exclusively in the company's South Boston factory.

Given the $1 billion that Gillette spent researching, developing and launching Mach3, the world's first three-blade razor, in 1998, analysts were giddy to hear the investment would be leveraged for a new product that has the potential to boost sales of an already highly-lucrative family of razors.

"The return on invested capital is wonderful, wonderful news," McQuilling said.

The Mach3 family, which includes Mach3, Mach3 Turbo, and Mach3 Champion, is the world's top-selling razor. With a 35 percent share of the blade and razor market in United States, it trounces the competition. All other three-blade razors share 2 percent of the market.

In September, in a rare feat of one-upmanship, rival Schick-Wilkinson Sword introduced Quattro, the world's first four-blade razor. Even in the face of increasing competition, however, sales of Mach3 continue to grow. Gillette said it saw US sales of its Mach3 razors grow 13 percent in the last three months of 2003.

The introduction of Quattro sparked a rare public response from Gillette, which went to court to block sales of the four-bladed razor, saying Schick had infringed on Gillette patents. Yesterday, a US District Court judge denied Gillette's request to block the sale of Quattros as the two sides awaited a trial date. Gillette issued a statement opposing the ruling, saying that the company "has been consistent in our rigorous defense of our intellectual property and we do not intend to abandon these claims."

A Schick spokeswoman, Jacqueline Burwitz, applauded the court's ruling and said of the M3 Power razor that Schick "welcomes innovation in the industry."

Gillette's Hoffman said that 55 percent of men in consumer tests preferred M3Power over Mach3 Turbo.

"It does take luster away from Quattro's launch," said Joseph Altobello, an analyst with CIBC World Markets in New York.

As in the past, Gillette's newest innovation comes with a higher price for consumers. The new razor, which hits US stores in May, will cost $14.99, compared to $8.99 for Mach3 Turbo, and a package of four razor blade cartridges will cost $10.99, a significant jump compared to $8.99 for Mach3 blades.

Gillette said developing the new razor was a multiyear effort, but declined to say how many years or how much it spent on M3Power. Though Gillette plans to air an advertising spot during the Super Bowl, television ads for M3Power won't start until the razor is available in stores.

Convincing men that a vibrating handle means a better shave may prove a challenge, said Daniel Ladik, an assistant professor of marketing at Suffolk University in Boston. After all, a shaky hand and sharp blades don't seem a great mix. But in 1998, when Gillette came out with Mach3, many people thought the idea of three-blade razor was silly. Since then, consumers have spent more than $9 billion on Mach3 products.

"A vibrating razor sounds a little weird," Ladik said. "But Gillette has had to educate consumers before."

Naomi Aoki can be reached at naoki@globe.com.