New York (CNN Business) Gillette's newest razor doesn't come with an extra blade or better handle. Instead, the $200 razor heats up to give men the "pleasure of a hot towel shave."

Procter & Gamble PG But for Gillette, which is owned by consumer products conglomerate, the heated razor is not a gimmick.

Gillette is betting there's an audience for the high-tech luxury razor, which has two heat settings: 110 degrees and 122 degrees. The razor has built-in heat sensors and safety features to prevent it from overheating.

"This is a super-premium luxury razor," Gary Coombe, CEO of P&G's global grooming division said at the company's investor day last November when the heated razor was first unveiled publicly. "We're very encouraged by the early reception and the potential market for this kind of product."

Gillette's heated razor has a stainless steel warming bar that heats up within a second, five thin blades and a rechargable battery.

The US razor industry isn't growing , so P&G hopes that introducing premium innovations like the heated razor will compel some customers to trade up from their regular Gillette razors, explained Ali Dibadj, analyst at AllianceBernstein.

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