Gillette Razor Stock After 1929 Stock Market Crash
The original “Gillette” Company was founded by King Camp Gillette in 1895 as a safety razor manufacturer. While working as a salesman for the Crown Cork and Seal Company in the 1890s, Gillette saw bottle caps, with the cork seal he sold, thrown away after the bottle was opened. This made him recognize the value in basing a business on a product that was used a few times, then discarded.
Gillette is widely credited with inventing the so-called razor and blades business model, where razors are sold cheaply to increase the market for blades, but in fact he did not adopt this model until his competitors did.
To sell the product, Gillette founded the American Safety Razor Company on September 28, 1901 (changing the company’s name to “Gillette Safety Razor Company” in July 1902). Gillette obtained a trademark registration (0056921) for his portrait and signature on the packaging. Production began in 1903, when he sold a total of 51 razors and 168 blades. The following year, he sold 90,884 razors and 123,648 blades, thanks in part to Gillette’s low prices, automated manufacturing techniques and good advertising.
By October 27, 1929 Gillette was trading at $124.75 per share when the first wave of selling on “Black Monday”, October 28, 1929 brought the shares down ($19.50) to close at $105.25 per share on the day. By August 11, 1932, Gillette was trading at $19.25 and hit a 1932 low of $10.375 per share.
King Camp Gillette was almost bankrupt at the time of his death, due both to his having spent large amounts of money on property, and to his having lost much of the value of his corporate shares as a result of the Great Depression.
On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists and its last day of market trading (Stock Symbol: G) on the New York Stock Exchange was September 30, 2005.
Tags: 1929 Crash, American Safety Razor Company, August 11 1932, Bankrupt, Black Monday, Business Model, Crown Cork and Seal, G, Gillette Company, Gillette Razor, Gillette Safety Razor Company, Great Depression, King Camp Gillette, October 27 1929, October 28 1929, October 29 1929, P&G, Procter & Gamble, Razors, Stock Symbol