Posted: February 18th, 2022
In 2016, shaving and hair removal products accounted for the US $4.13 billion market, with $2.9 billion accounted for by razors and cartridges. In 1895 king camp Gillette revolutionized the shaving razor by eliminating the need to sharpen the blade. Over the years, Gillette’s competitors have entered the market, but since they provide a cheap product that is in constant steady innovation, steady prices rose, and their competitors always found it hard to catch up. They controlled the razor market by controlling and always being ahead on its innovation.
However, at some point, the Dollar Shave Club was invented by two friends, Mark Levin and Michael Dubin, and it had a massive effect on the razor market. They used a subscription-based business model, effective promotion techniques that were much promoted by Dubin, who had a background in improv comedy, a direct-to-consumer model where a member could find products by signing to the club, and lastly, better consumer engagement.
Some of these strategies used by DSC have been quite useful. Gillette should respond by being unique and better than their customers, especially on the issue of customer engagement. Being considered dull and distant makes their customers feel like they are no longer part of their product. This is why they should atleast be freer to their customers and create a sense of customer engagement by setting a team aside, such as DSC. Finally, these are some of the reasons Unilever wants to acquire DSC, including the fact that they have no direct-to-customer experience like the company has.
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