Earlier this year, Harry’s, the online razor subscription service that isn’t Dollar Shave Club, began selling its products in Target stores. The startup put up cool displays shaped like a giant orange razor, and soon half of the razor handles sold at Target were from Harry’s. One-tenth of the blade cartridges sold were from Harry’s. Dominant razor seller Gillette was not pleased.
After the displays come down and Harry’s products go back on the regular shelf with other brands, sales will probably fall again. What’s interesting, though, is the reason why the products came to Target in the first place.
Target wanted to bring back shoppers who have been buying a lot of their consumables online, and Harry’s was looking for new places to retail its razors. The partnership worked, based on each company’s research about its own customers.
Harry’s knew that its main customers, men, would rather buy razors and blades in person, but don’t like the price points and products available in regular stores.
Target shoppers, meanwhile, were looking for “something different,” according to the chain’s vice president of beauty and personal care. “We think Harry’s is filling a niche that wasn’t currently being met.”
Meanwhile, Procter & Gamble’s Gillette saw its sales fall during the Harry’s promotion, and the company now realizes that it needs to watch its back, especially now that subscription blade company Dollar Shave Club has the backing of its rival consumer products conglomerate, Unilever.
Gillette now has its own subscription service, but is that enough to stay competitive when the new competitors are right there on store shelves too?
Online Upstart Harry’s Razor Jumps Into Gillette’s Turf [Wall Street Journal]
by Laura Northrup via Consumerist
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