The American electric shaver manufacturing industry is just limping along, according to a new report. The problems are a weak economy – shavers are, to a degree, a discretionary purchase items – and growing Chinese competition.
Total demand is actually growing, but the report, from IBIS World, says that the above trends have sparked “intense price competition within the industry, significantly pressuring the remaining US manufacturers’ profitability and reducing domestic production.”
According to the report:
Even though domestic demand for electric shavers and trimmers has increased over the past five years, it was mostly satisfied by imports, as their share of domestic demand increased from 78.8% in 2009 to an expected 87.5% in 2014.
Over the next five years, demand for electric shavers and trimmers is projected to increase. Unfortunately for industry players, imports are forecast to capture most of this increase in the long run. However, increased emphasis on exports and high end products is expected to help manufacturers offset some of the damage done by imports. Nonetheless, these responses will only slow the rate of industry decline, not reverse it. Therefore, industry revenue is forecast to decline in the five years to 2019.