Dollar Shave Club has grown enormously since its launch in 2011. In fact, CEO Michael Dubin recently said to the Los Angeles Business Journal that the company is on track to exceed $60 million in sales this year and has over 900,000 active members. Though the company is best known for its viral video- the YouTube monologue has over 16 million views and is credited with launching the company- Dollar Shave Club has continued to tap into enormous growth by executing on a savvy understanding of male grooming needs, offering a solution without hassle, and finding new ways to market with a tongue-in-cheek sense of humor.
Like so many startups, Dollar Shave Club came out of a personal pain point.
“While living in New York, I hated to shop for razors. It was a hassle to find time to go to the local drugstore, track down the clerk and have him unlock the razor fortress. And the razors were always expensive,” said Dubin. “I knew there was a way that guys like me could buy affordable, high quality razors without having to go through all those hoops.”
From that frustration Dollar Shave Club was born. The company’s business model at first seems rather simple. Each month subscribers receive four to five cartridges of a two, four or six blades variety. That’s it. Why this subscription model works so well for razors and not other products is not always apparent to everyone, but to Dubin it is quite clear.
“A few years ago there was a monthly shipment, monthly revenue addiction. You could get anything delivered to you in a box on a monthly basis. Some of these businesses are thriving while others have had to change their business model,” said Dubin. “Subscription is right for some businesses, but not others. You have to ask yourself, ‘Is it a must-have or a nice-to-have?’ Men run out of razors frequently and hate schlepping to the store, so it works for our business. But it doesn’t work for every business.”
That simple model, however, is prone to be copied. And several subscription services have done just that. Harry’s and Manpacks offer razor subscription services, so too does Gillette- one of the expensive consumer good powerhouses Dollar Shave Club originally sought to disrupt. But, what sets Dollar Shave Club apart from those copycat competitors is the company’s approach to the subscription model.
“I don’t like the term subscription,” said Dubin. “Dollar Shave Club is a membership, which feels warmer and more inclusive. Membership isn’t an industry term, but for us it’s a branded difference. Calling someone a member is a vote of confidence and trust; it makes the relationship more valuable. We’re all about adding greater value to the lives of men.”
To that point, members are the only customers able to buy from Dollar Shave Club’s expansion into shaving butter, post-shave moisturizer and flushable butt-wipes. “We want to own the bathroom and be the easiest place for guys to get everything they use every day in there,” said Dubin.
“From the beginning, we thought joining Dollar Shave Club was far more than just getting razors shipped to your door. We felt that telling a story around guys' frustration with razors in a compelling way would build a brand, and that would be the key to success. The membership and products were critical to solving the problem for guys, but we think the brand and the community we've built is what makes Dollar Shave Club special,” said Dubin.
And though what really got the company moving a couple of years ago was that viral video featuring Dubin talking about the expense and over complication of buying razors, Dollar Shave Club has made sure the its branding is much more than a one-off moment. There have been several follow up videos launching new products and the company has added its cheeky, irreverent style to all sorts of products.
“On everything from our videos to our monthly box packaging, we've developed a unique no BS brand voice that resonates with guys and helps develop a community among our genius members,” said Dubin. “Part of this is creating a meaningful impact on our members’ lives. In each package to our members, there is always insightful and fun content, for example Dollar Shave Club Bathroom Minutes, alongside their Dollar Shave Club products. Through this ‘magazine’, we not only let our members know what we’re up to, but we also help members support other members.”
These small touches of personality are huge for ecommerce brands today. With corporate giants able to steamroll efficiency out of nearly any consumer goods business, what separates Dollar Shave Club from Gillette, Amazon or any other behemoth is branding with character, something not easily copied. Now that Dollar Shave Club is projected to earn $60 million in sales this year, look to see that irreverent personality expanded to new consumer goods.
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