TakeAway: A new start-up is using disruptive innovation to cut its way into the multi-billion dollar shaving industry.
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Excerpt from WSJ: “A David and Gillette Story”
Dollar Shave Club, the e-commerce start-up, already developed a following for its quirky approach to hawking razors and blades for a $3 to $9 monthly fee.
It began with a YouTube video, in which founder rides on a forklift, plays tennis, and dances with a fuzzy bear. It’s already received some four million views.
The shaving industry market leaders have huge marketing budgets, deep consumer research and relationships with retailers that leave little room for newcomers.
What the start-ups have in their favor is technology. Companies with no marketing budget can command attention with free video and quickly build a following on services like Facebook and Twitter. Netflix have conditioned consumers to getting regular deliveries of the things they use by mail.
It is unclear whether those prices will prove low enough to lure users. By comparison, 15 Gillette Mach3 cartridges can be purchased for as low as $2.06 each on Amazon.com.
Edited by ARK
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