Online Shaving Industry

[pic 1]

ONLINE SHAVING INDUSTRY

How Has It Changed

[pic 2][pic 3]

The shaving industry has pretty much stayed the same for the past 100 years. King Gillette introduced the first safety razor in 1901.  Overtime Gillette became part of Proctor & Gamble, a huge conglomerate in consumer products.  Twenty years later, Colonel Jacob Schick introduced his first safety razor. Schick became part of Energizer Holdings.

Both of these offer moderately inexpensive no-frills shavers and somewhat expensive replacement cartridges.  They make people believe that the products are made with “space-age technology,” then they use marketing to make everyone think that they will be sexier if they use them by using models such as Kate Upton, a Sports Illustrated Swimsuit model.

Proctor & Gamble has always been the market leader in blades and razors holding approximately 70% or the market share until recently. There are a number of reasons for their decline.

1. Facial Hair Acceptance-The latest fad concerning facial hair is the return of the mustache and beard. Social movements such as “No Shave November” has contributed to the decline in sales of razors and blades.
2. Competition- E-Commerce startups and upstarts such as The Dollar Shave, Harry’s, and King of Shaves are capturing a growing share of the razor industry.
3. Premium Priced Blades-Consumers don’t want to pay a premium price for simple commodity.

Two companies are attacking this way doing business.  Harry’s, from the east, was “built out of respect for quality craftsmanship, simple design, modern convenience and most importantly for guys who know they shouldn’t have to overpay for a great shave.” (Harry's, 2012-2016). Dollar Shave Club comes from the East with their “Shave Time-Shave Money” (Dollar Shave Club, 2012-2016) no frills concept that takes the cost and thought out of shaving.

Andy Katz-Mayfield and Jeff Raider founded Harry’s in 2012.  Katz-Mayfield had a bad experience when he ran out of razor blades and ran to the drugstore.  When he got there, the razors were locked up and it took a while to get them.  By the time he left, he had spent $25 on just some razors and shaving cream.  All he wanted was something functional and well designed.

Katz-Mayfield and Raider then decided to build a brand that “predicted on a really high quality product, thoughtful design, and doing it at a really affordable price as a way to build trust, respect, and loyalty.”

They created the Truman shaver at $10 and the Winston at $20.  However, the cartridges only cost $1.88 each with free shipping.  Harry’s offers an auto-refill subscription option that will send a fixed number of blades and creams for $31 every two months or you can purchase by the year for $186.

The Dollar Shave Club is different than Harry’s in that they not as concerned with design but concentrate more on fun, convenience and saving money. Michael Dubin, who formally wrote for NBC and MSNBC, is the brains behind Dollar Shave Club. He believes that most guys just want something easy and affordable and they don’t want to think about going to the store.