Shavekit is a better way to shave, for less. We started the company with a mission to create a better way for men to take care of themselves and re-stock their bathroom.
We’ve started with razors because there is a very clear problem to solve. We feel that the existing choice is very limited, prices are very inflated and the majority of men don’t enjoy the process of remembering and shopping for replacement blades.
We restock our customers’ blades monthly, bi-monthly, every third month or whatever suits them. The first delivery includes a free handle too. Members can easily upgrade, change their delivery, pause, restart and manage their account online.
Razors are just the beginning, the long term plan is to build a range of distinct men’s grooming brands to restock the entire bathroom. Our shave cream is planned to launch in Q4 2015 and our moisturiser and hair products in 2016.
We subscribe to the “lean startup” methodology. We built a minimal viable product in our first year, quickly proved the model by ending the year with more than 3000 active customers. The plan was always to move fast and prove the model without having the perfect product offering, rather than wasting a lot of our own and investors’ cash on tweaking design, product development before we had proved that a lot of customers want what we sell.
We’re now 1.5 years into building our vision for a better way to shave and we have 4000 active customers, around 2000 of whom have been active for more than 6 months. The next stage is to build our product range and speed up our marketing and product development.
Substantial accomplishments to date
- 4000 active customers.
- Lean, capital efficient. Year 1 was self-funded.
- 182k in revenue in year 1 (2014).
- 189k in Q1/Q2 2015.
- 2000 customers have been active for longer than 6 months.
We sell razors on a membership basis. Margins on razors, including delivery and associated packing costs are good. But our long term vision is to build range of products with higher margins over next 4 years. We aim to launch 2 products a year. Rather than "Shavekit Shave Cream", each product will have a distinct brand.
The addon products have significantly higher margins than razors. Razors are our entry point to the bathroom, the addon products will be where we make our margin and continue to build the "moat" around our business as well as diversify income sources.
Use of proceeds
We will be using the funds to
- Marketing - Existing channels and new
- Acquire more stock
- Develop new products (moisturiser and hair products).
- Launch new packaging
- Improve retention with improvements to the membership area and in package messaging.
We are a mass-market proposition. We are focusing on the quality of our products combined with excellent flexible service, Shavekit isn’t constrained as a brand by wrapping what is already a simple, great product in faux-luxury. Shavekit is simple, unfussy and does not alienate the average guy.
Our target market is any man who spends money on bathroom supplies.
Characteristics of target market
Men’s grooming in the UK is estimated to be worth £1bn and growing. The EU shaving market is estimated to be worth in excess of £2 billion.
We viewed the first year as an extended test. We now have a varied mix of marketing channels including social, search, offline marketing, partnerships and word of mouth referrals. Our marketing channels are commercially sensitive so we won’t be releasing in depth information publicly.
We have a plan for PR stunts, viral content and some very exciting partnerships which will drive more growth in 2015 and 2016.
We view our main competitor as the existing shaving duopoly that currently has a 90%+ market share, almost entirely in physical retail.
Future competition might come from either of the US shaving clubs launching in the UK. This doesn't appear to be imminent as they have significant work still to do in the US. If they do eventually launch in the UK, we believe that Shavekit would be an obvious acquisition target.
The existing monopoly players have seen their market share be eaten up by the likes of Dollar Shave Club and others within the US's burgeoning online marketplace, which now holds a 12% share of the razor market as well as smaller shares in other newer categories (hair products, shave cream, after shave balm).
Our offering is already succeeding, with more than 2000 members staying members for longer than 6 months thanks to the quality of the shave and frictionless delivery management.
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