DTC Case Study: Harry’s Razors
- How is the brand performing today?
Harry’s Razors was founded in 2013 and based out of New York. When they entered the razor scene, they faced a serious uphill battle with giants of the industry like Gillette and Schick holding massive market share.
The company rapidly made a name for themselves by satisfying a niche in the market that was previously untouched. The vast majority of men want a simple, no frills razor that gets the job done smoothly and at an affordable price. Before Harry’s the shaving market was more sectioned into expensive “million-blade” super razors that are supposedly amazing but in reality are nothing but a gimmick, and then cheap disposable razors that barely make it through a single shave before becoming dull and harsh on skin.
What was initially a skeptical business venture in the eyes of traditionalists was rapidly transformed into one of the largest DTC companies in the U.S. In less than 10 years from its launch, Harry’s went from nothing to $370 million in sales by the end of 2020. Even in the height of the pandemic when the majority of Americans began working from home and quit caring about their appearance, Harry’s managed to increase sales figures in 2020 by 25% thanks largely to increased diversification of products to include more than just razors.
Based on purely financial figures, Harry’s Razors appears to be in good shape. That being said however, Google Reviews on the brand appear to say just the opposite. The front page of twenty reviews were nearly all one or two star reviews attached to negative comments about experiences with the brand. So while Harry’s clearly has an established fanbase to get them to those impressive sales figures, they also seem to have quite a few dissatisfied customers who are taking their money back to the competition.
Speaking of competition, Harry’s has quite a bit of it. While we’ve already highlighted the industry giants of Gillette and Schick, one of Harry’s biggest challengers comes in the form of Dollar Shave Club. Based on the same original premise of DTC razor sales, Dollar Shave Club takes away a large portion of Harry’s consumer base with its shave subscription offerings. At the end of the day, the two companies charge approximately the same for a razor cartridge at $2 a pop. When it comes time to decide between the two brands it really comes down to consumer preference and visual appeal, as they offer similar products at essentially the same prices, not taking into account special promotions.
2. Who is the key persona for the brand?
- Dave is a 32 year old white male who lives in a suburban area of North Carolina about twenty minutes outside of Raleigh called Holly Springs.
- He married his wife four years ago and they now have a young daughter. The family has a golden retriever named Buddy.
- Dave works at an up and coming IT company in downtown Raleigh. Always trying to maintain his “cool factor”, Dave drives a 2020 Dodge Challenger with a 392 hemi V8 that really proves he’s proud to be an American.
- Dave enjoys watching business related media including programs like Shark Tank, as he’s always eager to view and test out new and innovative products that can make his life easier.
- Dave makes a very respectable salary for someone of his age nearing six figures annually, yet he remains conscious of his spending habits and doesn’t see the point of throwing away money on overly complicated items.
- Take his shaving habits for example: Dave wants a simple product made of high quality materials at a reasonable price. He despises any overly flashy advertisements or “million-blade” razors that are supposed to be so great but cost a fortune.
- A DTC razor brand like Harry’s is right up his alley since he hates to waste time in big retail stores shopping for monotonous hygiene products. He can have quality razors, shaving cream, and even skin care products shipped right to his door.
- He is always eager to support an American company when he can, as he considers himself a patriot. Dave values time with his young family more than anything, and when he’s not at work he wants to be home enjoying their company.
3. How is this shopper learning about the brand?
As their razor business has taken off in the US, Harry’s has employed the help of social media to advance their presence and reach a wider audience. Currently, the brand utilizes four platforms: Facebook, Twitter, Instagram, and Youtube to promote their line of grooming products. This digital presence has proved a valuable method to connect with their target audience of younger millennials, as well as a means for them to provide valuable feedback and insight. Twitter and Youtube especially seem to be active areas for consumers to collaborate.
Harry’s public image as the underdog taking on the giants of the traditional razor industry has won them great favor in the eyes of those who despise corporate behemoths. The fact that they are an American company started by two average men seeking to solve a common problem adds an additional draw factor. The company really advertises as “the people’s razor” and uses the David and Goliath image to their advantage.
Additionally, the frequency with which Harry’s has been in the news media in recent years has also aided to their addition to the client base. In 2020 the independently owned brand was ready to sign a deal with Edgewell Corporation for $1.37 Billion that would give them ownership, but allow founders Katz-Mayfield and Raider to continue management of their company. Major media outlets like Forbes and Marketing Week eagerly covered developments on the deal which eventually fell through because of a block by the Federal Trade Commission, but nonetheless provided multitudes of free advertising.
4. How developed is the brand in DTC distribution?
At this point in the life of the brand, Harry’s Razors now has what is considered to be a blended distribution with regards to their DTC role. When the company was founded back in 2013, their model was purely DTC in that the only way consumers could purchase Harry’s was online to be shipped to their home. As the company grew however, they realized that a large percentage of potential customers was being overlooked: those who shop in stores only. Additionally, the idea of expanding their product line to be available in traditional retail outlets was a great way to compete with their main rival Dollar Shave Club which had already made the move to in-store options.
As it turned out, this shift to a blended distribution worked highly in Harry’s favor, as sales have skyrocketed in recent years thanks largely to the increased market exposure. Today, Harry’s Razors can be found in Target, Walmart, and even drug stores like CVS. The proof that Harry’s is now a real threat can be evidenced by the fact that Gillette was forced to cut their prices by 12% starting in 2017 and has since had to reevaluate its strategy in a market that they previously dominated remaining untouched.
With regard to customers, this is the best of both worlds. Those who prefer online shopping with seamless delivery have their place, and those that want to grab quality razor products while they’re already out at the store for convenience can do so as well.
5. What should the brand do in the future with regards to the 4P’s to reflect changing shopper behaviors?
When it comes to price, Harry’s has positioned itself in a very affordable yet competitive position. While its pricing comes in below that of industry giants Gillette and Schick, other “value” brands like Dollar Shave Club pose a real challenge to market share. If Harry’s wants to take charge of the segment and make its way to the top, they may need to consider a pricing model that slightly undercuts that of the competition.
According to many reviews, one area Harry’s could use some improvement is product. Some users claim that the brand has begun using cheaper materials in their blade cartridges in order to make them wear down faster. If they want to reassure consumers that they provide a quality product, Harry’s needs to step up their customer service game and do their best to satisfy consumers to gain their loyalty.
As far as place and promotion go, Harry’s has definitely taken the right initiative. By making their line of products online as well as in popular retailers, they have ensured maximum visibility to reach every consumer. On top of that, the management team at Harry’s has done their part to stay current by employing several different social media platforms as well as razor influencers to keep consumers interested.
- Note: This article is a class assignment for BUS 465 — Integrated Brand Promotion and Advertising at NCSU Poole College of Management.
Sources:
https://www.bbc.com/news/business-51450297
https://unmetric.com/brands/harrys
https://www.wsj.com/articles/online-upstart-harrys-razor-jumps-into-gillettes-turf-1478707250
https://nogood.io/2021/12/29/harrys-marketing-strategy-case-study/
