In Brands, Finance
The razor wars are heating up and heading to court. Since their launch in 2012, Dollar Shave Club has slowly chipped away at Gillette’s category dominance, capturing 8% of the $3 billion US market for razor blades by offering razors at a significant discount to Gillette’s, mailed directly to the consumer. The civil suit, filed in Delaware by Procter & Gamble, seeks an injunction to prevent the sale of razors that infringe one of Gillette’s hundreds of patents.
Bursting onto the men’s grooming scene in 2012 with a provocative video starring the company founder Michael Dubin, Dollar Shave Club claims to have 10 million customers who pay between $1 and $9 for its blades, at least, every other month. Earlier this year Gillette launched its own online subscription plan, apparently to compete with Dollar Shave Club and a newer service, Harry’s.
Dollar Shave Club seems to buy razors from Dorco, the US arm of a South Korean razor manufacturer that provides private-label razors for several retailers. Gillette’s suit doesn’t mention the supplier—only the Dollar Shave Club brand. Neither Dollar Shave Club or Dorco commented on the lawsuit.
Read the full WSJ article here.
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