Dollar Shave Club: $0 to $1 Billion

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In this edition of our newsletter, we will dive into Dollar Shave Club, a company that has disrupted the razor industry with its innovative subscription model and effective storytelling.

The Founding Story

The company's CEO, Michael Dubin, started Dollar Shave Club in 2011 after talking to a friend's father at a party about the cost and hassle of buying razors. Dubin saw an opportunity to create a better razor experience for men by offering affordable, high-quality razors delivered to their doorstep.

The Power of Storytelling

Dollar Shave Club's success can be attributed to its effective storytelling. The company's first YouTube-only ad, released in 2012, gained 27 million views and 12,000 new customers overnight, causing the company's server to crash. The success of the ad was due to the company's CEO, Michael Dubin, who had studied improv for eight years, and the timing of the ad's release during YouTube's "golden age of content."

The Subscription Model

Dollar Shave Club's subscription model has also been a key driver of its success. The company offers three different plans with varying levels of razor quality and frequency of deliveries. The subscription model not only provides convenience for customers but also creates a recurring revenue stream for the company.

Brand Refresh

By 2020, Dollar Shave Club did a major brand refresh and rolled out new brand aesthetics for its website, product packaging, and other assets. The refresh was aimed at modernizing the brand and attracting a wider audience.

Acquisition by Unilever

In 2016, Unilever purchased Dollar Shave Club for $1 billion. The purchase was explained by the company's relationships, beginning with their successful startup launch video, possibly the greatest of all time. The acquisition further solidified Dollar Shave Club's position as a market leader in razors.

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