Stratechery Email Addresses and Razor Blades
9 snips
Feb 25, 2020 The discussion kicks off with a look at Harry's razors and their game-changing direct-to-consumer approach. It dives into the implications of a failed acquisition on the razor market and regulatory concerns about competition. The impact of digital advertising and the evolving value chains is dissected, highlighting the challenges for DTC brands against tech giants. Innovation is crucial as these companies navigate the complexities of customer acquisition in an ever-changing landscape. It's a fascinating mix of business strategy and market dynamics!
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FTC Blocks Harry's Acquisition
- The FTC blocked Edgewell's acquisition of Harry's Razors.
- They argued Harry's disrupted the razor market, benefiting consumers with lower prices.
Acquisition Disincentives
- Acquisitions in CPG categories face antitrust scrutiny due to market concentration.
- This discourages investment and punishes DTC companies expanding into brick-and-mortar.
DTC Value Chain Disruption
- DTC companies aimed to disrupt CPG by integrating marketing, retail, and manufacturing.
- However, they ended up outsourcing marketing to Facebook and Google, losing value.
