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Author Topic: Unilever is paying $1B for Dollar Shave Club  (Read 868 times)

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hog.goblin

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Unilever is paying $1B for Dollar Shave Club
« on: August 08, 2016, 06:29:13 pm »

http://www.nytimes.com/2016/07/27/business/dealbook/1-billion-for-dollar-shave-club-why-every-company-should-worry.html?_r=0

Very interesting article.

First, the way Dollar Shave Club shook up the industry so quickly, so extensively, is truly amazing.

Second, the article seems to imply that Dollar Shave Club may not have a protected strategy.  DSC has it's own brand and marketing scheme, but the article indicates that they are selling everything out of South Korean company called Dorco, a company you can buy your razors directly from (presumably cheaper if you are bypassing Dollar Shave Club), or in bulk from Amazon.

So did Unilever pay $1B for the idea to supply razors via a monthly subscription?  They couldn't just start doing that on their own?  I'm sure DSC has some copyrights on the language and marketing, but certainly they couldn't prevent a Gillette or Unilever from offering a monthly replacement service from their own distributor.

Personally, I think shaving is overrated.
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sevenof400

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #1 on: August 08, 2016, 06:34:56 pm »

OMG!  How did I never see this commercial???

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hog.goblin

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #2 on: August 08, 2016, 06:45:24 pm »

OMG!  How did I never see this commercial???


brilliant, and now hundreds of millions richer
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McKdaddy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #3 on: August 09, 2016, 08:20:05 am »

Harry's will be next on the block, I imagine.
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sevenof400

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #4 on: August 09, 2016, 08:26:21 am »

The thing that strikes me is how successful DSC became making something from nothing while investing next to nothing (especially for their advertising). 

Sorry for that confusing sentence but looking at DSC really underscores how building a business is easier than ever with respect to advertising and publicity in the age of YouTube and a slew of other direct to consumer marketing mediums.  Even though I did not see their commercials prior to seeing this thread, I had heard DSC's radio spots on Mike and Mike (which I'm sure are not cheap but were also likely not among their earliest advertising avenues). 

The times, they are a changing in the business world. 
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McKdaddy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #5 on: August 09, 2016, 09:21:29 am »

The thing that strikes me is how successful DSC became making something from nothing while investing next to nothing (especially for their advertising). 

Sorry for that confusing sentence but looking at DSC really underscores how building a business is easier than ever with respect to advertising and publicity in the age of YouTube and a slew of other direct to consumer marketing mediums.  Even though I did not see their commercials prior to seeing this thread, I had heard DSC's radio spots on Mike and Mike (which I'm sure are not cheap but were also likely not among their earliest advertising avenues). 

The times, they are a changing in the business world. 

Agreed.  A Google search of DSC yields many commentaries since the unilever announcement echoing your comments above.  I was one of many people that bought traditional razor refills for $32+ for a 8-pk AND would use them way past the point of a good shave.  So I joined Harry's in spring of '14 looking for an alternative.  I now use a blade for only a week and my old reoccurring razor burns are not an issue.

I see that Target and Harry's have entered a deal to carry Harry's products.
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Hawgndaaz

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #6 on: August 09, 2016, 09:35:40 am »

OMG!  How did I never see this commercial???


One of the only times I have EVER made a purchase solely off a commercial. Been using them for 2 years now. 6 bucks every 2 months for 4 new blades. They aren't the best quality, but they work and they come in my mailbox.
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Albert Einswine

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #7 on: August 09, 2016, 09:44:59 am »

I can easily get 3 weeks of great shave out of a single cartridge from my Schick Hydro 5 and I'm an extreme shaver, shaving my head bald daily and the touch up around the beard. Obviously this post has nothing to do with the actual topic, just a praise of Schick from a former lifelong Gilette loyalist.
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McKdaddy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #8 on: August 09, 2016, 09:46:12 am »

they come in my mailbox.

That was a great selling point as well, given how much men hate going to the store, generally speaking.
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Hawgndaaz

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #9 on: August 09, 2016, 09:59:33 am »

That was a great selling point as well, given how much men hate going to the store, generally speaking.
I loathe Walmart. Amazon Prime is a single man's best friend.

28lb bag of dog food delivered to my front door.. at the same retail price as WM. Same goes with any toiletries, cleaning supplies, etc. I order it from my desk at work and its there 2 days later. Only store I have to go to now is the liquor store.
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McKdaddy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #10 on: August 09, 2016, 10:50:55 am »

I loathe Walmart. Amazon Prime is a single man's best friend.

28lb bag of dog food delivered to my front door.. at the same retail price as WM. Same goes with any toiletries, cleaning supplies, etc. I order it from my desk at work and its there 2 days later. Only store I have to go to now is the liquor store.

Prime is a bit too convenient for my wife.
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DeltaBoy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #11 on: December 06, 2016, 08:43:00 am »

I went back to wet shaving with a Brush and DE or SE razor about 6 years ago and I never looked back.  I found a few blades that I really liked and stocked up on Amazon  I get plenty of shaves for the buck out of my set up but I was shocked to see Dollar Shave Club sell for so much money.
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husker71

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #12 on: January 04, 2017, 07:26:17 pm »

I have been a dollar shave member for 3 years   I actually have so many blades that I have not use which means there blades are really good for my face    I considered trying Harrys but I have not heard much good about their product
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sevenof400

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #13 on: January 04, 2017, 07:32:49 pm »

I use Harry's since they had a plan that fit my changing needs better.  Harry's plans can be modified on the internet with no phone call required.  DSC changes require a call to a customer service center.  Yuck.

I am pretty happy with Harry's blades and their shave gel.  But to be fair, I have never tried DSC.
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BigBrandonAllenFan

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #14 on: January 12, 2017, 01:19:02 pm »

Nothing more than a move to seal off the competition.  Unilever is the world's third largest retail marketing company behind Coca Cola and Pepsico.  $1B is a drop in the bucket to them.
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DeltaBoy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #15 on: January 31, 2017, 12:49:34 pm »

Nothing more than a move to seal off the competition.  Unilever is the world's third largest retail marketing company behind Coca Cola and Pepsico.  $1B is a drop in the bucket to them.

I belive there more truth to your statement than most want to believe .  DSC was cutting into the bottom line.
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sevenof400

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #16 on: February 05, 2017, 12:29:58 pm »

Nothing more than a move to seal off the competition.  Unilever is the world's third largest retail marketing company behind Coca Cola and Pepsico.  $1B is a drop in the bucket to them.

What is your source here? 

Given this list: http://www.investopedia.com/articles/markets/122415/worlds-top-10-retailers-wmt-cost.asp
has neither Coca Cola or PepsiCo in it. 

Just curious - not trying to start darn here.  I fully agree with you about Unilever and their motives behind this move. 

As an aside, will they do after Harry's next?
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Rocky&Boarwinkle

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #17 on: February 05, 2017, 02:38:35 pm »

What is your source here? 

Given this list: http://www.investopedia.com/articles/markets/122415/worlds-top-10-retailers-wmt-cost.asp
has neither Coca Cola or PepsiCo in it. 

Just curious - not trying to start darn here.  I fully agree with you about Unilever and their motives behind this move. 

As an aside, will they do after Harry's next?
I think you misunderstood what he was saying. He didn't mean retailers like Walmart, but instead companies like Coca cola or diapers that directly advertise their retail offerings. but he was wrong about actual recent rankings
http://www.businessrevieweurope.eu/marketing/831/The-37-most-valuable-brands-in-the-world

http://www.businessrevieweurope.eu/marketing/856/Top-20-companies-with-the-biggest-advertising-budget
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BigBrandonAllenFan

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #18 on: February 05, 2017, 05:37:33 pm »

http://www.nytimes.com/2016/07/27/business/dealbook/1-billion-for-dollar-shave-club-why-every-company-should-worry.html?_r=0

Very interesting article.

First, the way Dollar Shave Club shook up the industry so quickly, so extensively, is truly amazing.

Second, the article seems to imply that Dollar Shave Club may not have a protected strategy.  DSC has it's own brand and marketing scheme, but the article indicates that they are selling everything out of South Korean company called Dorco, a company you can buy your razors directly from (presumably cheaper if you are bypassing Dollar Shave Club), or in bulk from Amazon.

So did Unilever pay $1B for the idea to supply razors via a monthly subscription?  They couldn't just start doing that on their own?  I'm sure DSC has some copyrights on the language and marketing, but certainly they couldn't prevent a Gillette or Unilever from offering a monthly replacement service from their own distributor.

Personally, I think shaving is overrated.

Retail grocery and beauty aid suppliers I should have said. 

The Coca-Cola company has higher perentage of items on the market than any other supplier and they are 1st in sales. PepsiCo is second in number of items and sales and unilever is 3. At least that was the when I was a food broker. I doubt it has changed.
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sevenof400

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #19 on: February 05, 2017, 05:43:27 pm »

Thanks to both of you for that follow up info. 
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onebadrubi

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #20 on: February 06, 2017, 11:20:09 am »

What is your source here? 

Given this list: http://www.investopedia.com/articles/markets/122415/worlds-top-10-retailers-wmt-cost.asp
has neither Coca Cola or PepsiCo in it. 

Just curious - not trying to start darn here.  I fully agree with you about Unilever and their motives behind this move. 

As an aside, will they do after Harry's next?

Unilever is only a B2B (Business 2 Business) company.  They supply Wal-mart and other retail locations, they are merely a supplier basically. 
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zane

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #21 on: February 06, 2017, 11:36:07 am »

all of these "men" on here talking about shaving

Bunch of Nancys
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DeltaBoy

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Re: Unilever is paying $1B for Dollar Shave Club
« Reply #22 on: February 10, 2017, 11:38:16 am »

all of these "men" on here talking about shaving

Bunch of Nancys

It part of a man's life unless you go Duck Commander.
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