his article analyzes how DSC has a low-price strategy and achieved the industry first in the online field. Dollar Shave Club (hereinafter referred to as DSC) was founded in 2012 and provides a razor subscription service of $1 per month; in 2015, its revenue was $150 million, and its market share in online razor shopping reached 51% , far text message service exceeding that of P&G. Column (Gillette has only 21% of this area). DSC took 4 years to go straight to the point and achieved the industry first in the online field. Gillette's razor is $8, and DSC's razor is $1. This business seems to be well understood, low price strategy! What this article wants to tell is the story after DSC determined the "low price strategy". First, the most important thing is the low price Is there a shortage of low-priced merchants? No shortage. Open a lot and you can see how excess productivity is.
DSC's shaver is $1, and China can even do it for $1. Garbage bags can be 400 yuan for 4 yuan, toilet paper can be 48 rolls for 8 yuan, and there is also free shipping. Before DSC, Gillette competed with such low-cost and low-quality razors, and text message service they all lived well. But here's the problem: the business isn't big enough and profitable enough. So how did DSC turn the tide against the wind and make it big? 2. How to grow a low-cost business Marketing divides products into three levels to explore how to stimulate consumer consumption: Product core: physical forms that meet consumer needs, such as beds and pillows; Product attributes: attributes that meet consumer expectations, such as new beds, fragrant pillows; Product added value: includes all additional information and benefits obtained when purchasing the product, including delivery, repair, warranty, installation, training, instruction, etc.
"Product attribute" is to add an adjective to the physical product. For a century, Gillette has been increasing its weight around "product text message service attributes" and adding attribute adjectives to "shavers" (such as spring shavers, rotary head shavers, dual-blade shavers, and speed razors). , 3-layer blade razor, 4-layer blade razor, 5-layer blade razor, etc...). This strategy has allowed Gillette to overcome low-priced items that are weak in "product attributes" - Gillette's peak market share of men's manual shavers in the United States is 90%. So, how does DSC expand the market share of lower-priced products? The answer: find no-man's-land. 1. Find product tiers that your competitors are abandoning Gillette abandoned "product value-added", while DSC focused on added value. Does Gillette have additional services? No. In the traditional retail model, the most you need after purchase is return and exchange. DSC has adopted an innovative sales channel - subscription system.