Razor-blade model disrupted by Razwar’s convenient subscription service

Consumer goods

SHARE

The new business Razwar of the company Growth Bridge fights directly against the big boys in the razor blade market. Instead of using the traditional bait-and-hook principle as it’s being used by Gillette or Wilkinson Sword, this e-shop brings the subscription service concept to the razor blade business. After buying a start kit of € 7.50, users subscribe in order to receive razor blades on a regular basis. For the fixed annual fee of € 27.50 Razwar will deliver 30 razor blades 3 times a year. Straight-forward but innovative in its sector.

This is a good example of a so called blue ocean strategy. Instead of focusing on the traditional value parameters in this market (more blades, less irritation,…), razwar tries to change the rules of the game by focusing on convenience and price transparency. In this case, they offer a service to the client instead of regular product sales. Nowadays many commodities are being sold in a similar way. Monthly Socks, Monthly Boxers or Subscription Condoms are good examples. What other concepts do you know?