Harry’s Razors: Andy Katz-Mayfield and Jeff Raider
Jun 12, 2023
01:13:24
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Quick takeaways
Harry's disrupted the shaving industry by offering high-quality razors at affordable prices through a direct-to-consumer model.
The founders prioritized building a strong brand and delivering value-driven products, constantly improving based on customer feedback.
Securing reliable manufacturing partners and establishing vertical integration were crucial for Harry's success in the shaving industry.
Deep dives
Launching Harry's: Disrupting the Shaving Industry
Harry's, a shaving brand founded by Jeff Rader and Andy Katz Mayfield, emerged as a disruptive force within the shaving industry dominated by Gillette. Dollar Shave Club and Harry's pioneered the direct-to-consumer model, offering a convenient and affordable alternative to traditional retail. Harry's focused on delivering high-quality razors at a lower cost, challenging the monopolistic prices set by major brands. The founders faced numerous challenges, including finding a manufacturer capable of producing high-quality razor blades and securing funding to bring their vision to life. With their combined expertise and determination, Harry's launched in March 2013 and quickly garnered attention and demand.
Building the Harry's Brand and Product Line
From the outset, Harry's prioritized building a strong brand and delivering high-quality products. They named their brand Harry's to evoke a warm and approachable feeling, aligning with their goal of providing a superior shaving experience. They developed shave sets that included a razor handle, blades, and shave cream at an affordable price point. The founders paid attention to design and aesthetics, creating handles in unique colors like orange and navy. Harry's set out to offer prestige products at mass prices, emphasizing value and customer satisfaction. Throughout the development process, they received valuable feedback from customers and constantly improved their products.
Navigating Manufacturing and Supply Chain Challenges
Securing reliable manufacturing partners proved to be a complex task for Harry's. The founders identified a German factory called Fine Technique that produced high-quality razor blades. However, they had to convince the factory to customize products according to Harry's specifications and maintain exclusivity. Financing the purchase of a million razor blades from the factory was another hurdle. Jeff and Andy raised $4 million in their first funding round and strategically managed the supply chain, with razor blades assembled in China and other components sourced from different suppliers in New Jersey. The experience taught them the importance of vertical integration and control over the production line.
Successful Launch and Future Growth
Harry's generated significant buzz and demand following its launch in March 2013. Media coverage and positive customer reviews contributed to its rapid growth. The company initially focused on selling shave sets rather than adopting a subscription model. They aimed to foster brand loyalty and create a remarkable customer experience. By listening to customer feedback and continuously improving their products, Harry's aimed to compete with industry giants like Gillette. The founders embarked on a journey to acquire a factory, realizing the need for complete control over manufacturing. Harry's disrupted the shaving industry by offering premium products at accessible prices and quickly became a dominant player.
Expansion and Acquisition of German Company
In the early days of the business, the founders of Harry's were concerned about potential competition. To preempt this, they sought to acquire a German company that manufactured razors. They secured commitments for $65 million of equity and raised an additional $35 million of debt from German bank lenders. This acquisition transformed Harry's from a startup into a vertically-integrated global consumer packaged goods company overnight.
Challenges of Integration and Cultural Differences
Following the acquisition, Harry's faced the challenge of integrating the German factory and its workforce into their operations. They had to navigate cultural differences, as the Germans favored a more methodical approach while Harry's had a fast-moving, entrepreneurial culture. Despite the challenges, Harry's successfully established themselves as a vertically-integrated company, gaining the advantage of being able to control the entire production process and respond directly to customer feedback.
Two college-era friends set out to change the face of shaving—and in the process, took on one of the biggest companies in the world. In 2011, Andy Katz-Mayfield and Jeff Raider realized they shared a common frustration with an everyday purchase: razors. Locked behind counters like diamond bracelets, they were inconvenient to buy and expensive to replace, with branding that seemed more suited to James Bond than a regular guy. So Andy and Jeff took on the Goliath of the shaving industry, Gillette—and its parent company, P&G—to launch a direct-to-consumer razor company with a friendly name. As a co-founder of Warby Parker, Jeff had some experience with D-to-C, but nothing prepared either founder for the rigors of razor research, and the culture shock of partnering with a factory in a remote part of Germany. After weathering a failed merger, Harry’s Inc. has grown into a force in the shaving industry both online and in-store, and has begun expanding into other household products.
This episode was produced by Liz Metzger, with music by Ramtin Arablouei
Edited by Neva Grant, with research help from Katherine Sypher.
