Shave clubs entered to shake the shaving industry in the US, and challenged leading brands to rethink their strategies. By creating their own loyal and engaged audiences, and by consistently developing strong, one-to-one relationships with consumers, these brands completely changed the marketing scene and developed a whole new way of doing business. By doing so, they proved that even more mature categories can bring growth.
Incremental innovation or improving a well-known product/service by adding new features and increasing prices will no longer work on the razors and blades industry. Shave clubs prove that demand is there, but consumers –especially the younger generations – look for a solution, not features, and if anew brand can offer it, they’ll switch. In this scenario, disruptive not incremental innovation will bring growth back.
New consumers entering the base pose new challenges to the industry. They value and prioritise different things, prefer brands offering a simple solution in a transparent way, look for brands to be identified with, seek convenience, and rely more than ever on friends, family, and influencers’ recommendations.Shave clubs have the not-easy-to-replicate advantage here, as they have access to invaluable first-party data. This data is the currency in today’s digital world, and the access and further strategy will define winners and losers.
Direct-to-consumers brands and internet retailing in general have been blamed for hurting sales of traditional brands and retailers due to their lower prices and the convenience of home delivery. Yet this premise is far from explaining the reason for their success. These brands changed the marketing scene completely. By creating their own loyal and engaged audience, and by consistently developing strong, one-to-one relationships with their customers,these brands developed a whole new way of doing business, and proved that even, or especially, more mature categories can see growth.
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