DollarShaveClub

YouTube 2012-03 business archived
Also known as: DSCSubscriptionBoxDTC

Dollar Shave Club became a startup legend with a $4,500 viral video that generated 12,000 orders in 48 hours—and led to a $1 billion acquisition by Unilever.

The Viral Video (March 2012)

Founder Michael Dubin starred in a deadpan comedy ad: “Our blades are f**ing great.”* Shot for $4,500, it got 12 million YouTube views in 3 months.

Pitch: $1/month razor subscription (plus shipping) vs. $20 Gillette cartridges locked behind anti-theft cases.

The Business Model

Subscription razors:

  • $1/month for basic twin-blade
  • $6/month for “The Executive” (6-blade)
  • Monthly shipments to your door
  • Eventually expanded: shaving cream, butt wipes, hair products

Why it worked:

  • Gillette’s razor-and-blade monopoly created pricing power abuse
  • Subscription convenience (never forget to buy razors)
  • Irreverent brand voice appealed to millennials
  • Razors cost pennies to manufacture in bulk

Growth & Exit

2012-2016: Grew to 3.2M subscribers, $200M revenue

July 2016: Unilever acquired for $1 billion (mostly stock)

Post-acquisition: Struggled to compete with Harry’s (another DTC razor startup), Amazon Basics, and Gillette’s belated DTC response

Cultural Impact

Subscription box gold rush: DSC’s success spawned hundreds of imitators (BirchBox, Blue Apron, HelloFresh, FabFitFun, Stitch Fix)

Viral marketing playbook: Low-budget, founder-led, personality-driven video ads became DTC startup gospel

Sources:

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