Monday, 11 August 2014

Dollar Shave Club 'is likely to make $60m in revenue in 2014'

"Dollar Shave Club is on pace to do $60 million in sales this year, up from $20 million last year, Mr. Dubin said. Its self-reported 600,000 users amount to around 2% of industry estimates of 36 million male razor cartridge users in the U.S. But Mr. Dubin said he believes Dollar Shave Club has captured 6.2% of the U.S. cartridge market by volume -- something that would give the two-year-old company around a third of the share of Gillette challenger Schick, owned by Energizer Holdings, in the $1.4 billion market for razor cartridges, according to Nielsen data from Deutsche Bank."
Source:  AdAge, 20th May 2014

1 comment:

Sindhya Valloppillil Kalghatgi said...

You can applaud Dollar Shave Club for their 1st video, but their 2nd video flopped. So they pulled it from YouTube. Their 3rd video for Charlie One Wipes was also bad and was criticized for being racist and for having extreme potty humor.

Regarding the products, Dollar Shave Club isn't doing anything unique or even creating their products for that matter. The razor that they sell is a Dorco razor. You can buy it cheaper directly from Dorco or on Amazon. Same goes for butt wipes and the shave cream.

The only thing that the DSC nailed is their first video. As a brand, DSC sucks. Nothing in their product portfolio is even $1. The brand name doesn't even make sense. Who is Dr. Carver? Why is their shave cream called Dr. Carver's Easy Shave Butter? The name is so stupid on so many levels. Finally, the Charlie One Wipes are a menace to society - they clog pipes and damage sewage systems. Refer to this article: http://gawker.com/your-fucking-butt-wipes-are-clogging-sewer-systems-1275892538

Don't believe all the hype. If you consider how much Dollar Shave spends on ads and customer acquisition, their sales are not impressive. Also, keep in mind that they have $22.8M in VC funding. Considering that too, their growth is not impressive at all.

Dollar Shave Club is not a great brand nor does it have great products. It only has a great video. Given the teams obvious lack of domain expertise when it comes to product development and global branding, it will never be able to go head to head with Gillette or Schick.