Cashing In On Movember: Can Men's Grooming Stocks Be Good For More Than Your Mustache?
James Dennin, Kapitall: Movember, a month-long, mustache-growing marathon for men's health, might also be good for your portfolio.
Studies have shown that women find clean-shaven men more attractive.
But that hasn't deterred Adam Garone, who along with four friends in Australia started "Movember." A crowd-funded charitable event, not unlike The New York Marathon, it encourages participants to solicit donations from friends and family while growing mustaches over the course of the month.
A kind of marathon in its own right, Movember raised over $120 million last year for various causes related to men's health.
Movember also attracts the interest of a number of corporate sponsors, who seemed eager to take advantage of the charity's light-hearted, but also altruistic and altogether serious mission. One of the most visible has been the Just for Men brand, the hair-coloring product for men which is owned by the privately held Combe Inc.
Just for Men was first attracted to Movember by an initially inexplicable 30% spike in Canadian profits over the course of November 2011.
There seems to be some pretty good money in razors, shavers, and creams these days, and not just during Movember. The American market was once dominated by two giants – Gillette and Schick – which are owned by Procter Gamble (PG) and Energizer Holdings (ENR) respectively. Although as late as 2007 it was a bit of a one-sided contest, with Gillette holding some 70% of the market share domestically.
However, there are signs that change might be in the air. For one, men are starting to get more interested in beard and facial-hair maintenance. Nearly 60% of men of mustache-bearing age sport some kind of facial hair, up nearly 15% since 1993. And they're started to sport more diversity in the grooming brands they choose.