Dollar Shave Club vs. Gillette – Who Is Overtaking Whom?

Dollar Shave ClubIt is over three years ago that we last wrote about the razer blade subscription service Dollar Shave Club. Back then, they made a name for themselves with their viral video. In Germany even reBuy was inspired by the way the video was made.

Since then, the startup has extended its portfolio and now covers all the products a “man” needs in the bathroom. The basic idea, a cost-effective razer blade home delivery subscription, remains. As has their inability to break even with this model, despite over 2 million subscribers.

The founders seem to be more talented at convincing investors. Dollar Shave Club is now valued at 615 million US dollars.

Their initial declaration of war against major manufacturers has achieved one thing: Gillette is moving in with “Gillette Shave Club”. The name cannot be coincidence.

But is this victory a comfort when the Dollar Shave Club is still stuck in the hazards? Wanting to develop out of the market of the tech-savvy younger generation into the big league, they lack brand awareness, while drifting into the territory of the competition more and more.

The subscription model has shown itself to be risky many times. Glossybox for instance, had to put a a painful reinvention behind them  on their way to back in the black. In contrast, Gillette can work in the subscription model without having to put all their eggs in one basket. It will be interesting to see who overtakes whom in the end.

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