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Dollar Shave Club's Dubin, Mourad on New Grooming Line (Audio) · Bloomberg Intelligence

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  Speaker 1: Angeles Dollar Shave Club. We've got the CEO and the
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  Speaker 1: I'm Charlie Platon. That's sub Bloomberg Business Flash. This is
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  Speaker 1: Like so many startups, like so many disruptors, Dollar Shaved
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  Speaker 1: Club was born out of frustration. I want to start
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  Speaker 1: the story from there with two very special guests now,
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  Speaker 1: Michael Duban, founder and CEO of Dollar Shape Club, and
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  Speaker 1: Boddy Murad, he's the chief product innovation officer. They're joining
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  Speaker 1: us in studio today to tell us about how they
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  Speaker 1: got started and how they are disrupting a very important industry.
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  Speaker 1: So Micha, let's start with you, founder CEO Santa Monica.
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  Speaker 1: I love Santa Monica. So you guys just were at
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  Speaker 1: a party and you said you're sick and tired of
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  Speaker 1: how razors work. Yeah. Yeah, it's a painting about to
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  Speaker 1: go to the store, find a locked razor, fortress, find
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  Speaker 1: the person with the key. They're always doing something else
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  Speaker 1: and they prefer not to help you. And so, um,
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  Speaker 1: you know, we launched Dollar Shave Club and that was
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  Speaker 1: in two thousand twelve. Since then, we we've garnered three
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  Speaker 1: point one million members. They get a shipment from us
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  Speaker 1: every month or every other month, and we've since expanded
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  Speaker 1: into non razor categories to solve larger men grooming challenges.
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  Speaker 1: Go ahead, tell us about that, and then I want
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  Speaker 1: to find out a little bit about the lawsuit, because
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  Speaker 1: you know, you've managed to accomplish something not everybody does,
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  Speaker 1: which is to get a made a consumer products company
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  Speaker 1: to sue you. Yes, we're completely thrilled about it. Yeah,
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  Speaker 1: I'm like that. Laura's must be thrilled about it as well.
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  Speaker 1: Uh yeah, Well I think I use and and you know,
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  Speaker 1: soap in order to feel fresh when they deal with this.
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  Speaker 1: Yeah right. Um, well, so look, I mean there's there's
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  Speaker 1: men are paying a lot more attention to their grooming
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  Speaker 1: than they ever have before, and they're just as frustrated
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  Speaker 1: with the shopping experience and with the products themselves. Uh
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  Speaker 1: and and so that's why we went out and hired Foddy, um,
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  Speaker 1: you know, a very accomplished product development specialist and innovator
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  Speaker 1: to help us develop you know, lines across the bathroom.
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  Speaker 1: So uh, you know, we just launched today the Wanderer,
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  Speaker 1: which is our line of body washes and bar soaps,
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  Speaker 1: eventually shampoo and conditioner. But we've got skin preservation stuff,
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  Speaker 1: we've got hair styling creams and gels. We've got pre
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  Speaker 1: and pochet, We've got one wife Charlie's a butt wipe
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  Speaker 1: for men, which is a major, a major seller, a big,
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  Speaker 1: big seller. Uh. And you know, we're really proud of
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  Speaker 1: that stuff. And the guys, guys, um, you know, they
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  Speaker 1: don't like going to the store, as we know. They
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  Speaker 1: like to get and get out and get on with
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  Speaker 1: their lives. And we're we're sort of a guided journey
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  Speaker 1: through the grooming aisle. So funny. So, as as the
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  Speaker 1: innovation officer, it seems to me there is a lot
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  Speaker 1: of competition in this space though. There's a busilion, different
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  Speaker 1: kinds of body washes and all kinds of razors. So
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  Speaker 1: what is your challenge? What are you what are you
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  Speaker 1: doing that unique different besides just allowing me to put
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  Speaker 1: an order in and get it automatically. What we think
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  Speaker 1: is very different and very unique about our company is
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  Speaker 1: we put the consumer first. We talked to him daily.
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  Speaker 1: As Michael mentioned, we have over three million members. Uh,
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  Speaker 1: we tap into them. We get to know what their
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  Speaker 1: problems are and we identify what the solutions will be.
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  Speaker 1: So men are emailing you, texting you rooms. We have
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  Speaker 1: everything from from live chats to SMS, two phone calls.
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  Speaker 1: We bring them in for focus groups. We actually go
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  Speaker 1: into their homes to understand how they're using products in
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  Speaker 1: the shower, how you know they're using their grooming products.
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  Speaker 1: To really understand what are their pain points, what are
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  Speaker 1: the areas of grooming that they're most frustrated with, and
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  Speaker 1: how can we tappen to them to help us develop
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  Speaker 1: products that it's gonna be specific for them, talk directly
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  Speaker 1: to them and make their grooming habits a lot healthier.
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  Speaker 1: All right, So either one of you can answer this question. Um,
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  Speaker 1: you know, I like the smell of the of the soap.
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  Speaker 1: You've gotten a couple of mixtures here, amber, lavender, mint,
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  Speaker 1: cedar wood, and so on. The razors themselves, why are
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  Speaker 1: they always so expensive? Not your razors, but I'm saying
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  Speaker 1: why you know you as you mentioned, you go to
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  Speaker 1: the case, you try to buy the razors and you're
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  Speaker 1: knocked out by the price. Why is that? I mean,
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  Speaker 1: you'd have to you'd have to talk to our friends
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  Speaker 1: in Cincinnati to find out why why they're so expensive? Good?
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  Speaker 1: Where the where the alternative? Yes, our good friends, good
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  Speaker 1: friends to each other. Well sow you you and you
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  Speaker 1: are alluding to and you mentioned the patent lawsuit from Gillette.
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  Speaker 1: You can you talk about that or not? No? Unfortunately
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  Speaker 1: I can't. Um, you can just say you're good friends.
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  Speaker 1: I can just say my good friends and you know
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  Speaker 1: we're looking forward to defending ourselves. Um, and I believe
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  Speaker 1: we'll be successful. So let me ask you, BOTTI. I
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  Speaker 1: would guess that a lot of women are involved in
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  Speaker 1: buying these products, either say hey, mi, guy really needs
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  Speaker 1: this and here it is honey signing them up. Do
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  Speaker 1: you hear from women as well? Absolutely? We we do
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  Speaker 1: know that. UM, A lot of men's grooming products are
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  Speaker 1: purchased by the girlfriends, the partners, the wives, UM. And
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  Speaker 1: they do understand that they're much more educated in terms
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  Speaker 1: of using products, but the guys are not so Traditionally
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  Speaker 1: they buy the products for him. UM. But it's important
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  Speaker 1: for them to understand actually what they're you know, what
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  Speaker 1: the what what the guy's specific skin concerns are and
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  Speaker 1: the fact that it's also different. We're developing products specifically
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  Speaker 1: for men, we're not leveraging women's faces. And that's how
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  Speaker 1: we go about it. I think the interesting thing about
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  Speaker 1: about men's grooming in the age that we're living in
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  Speaker 1: right now is that guys really want control over this
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  Speaker 1: area of their life. They don't want to seed control
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  Speaker 1: to to somebody else in their households or somebody that
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  Speaker 1: they live with. Um. They recognize the direct connection that
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  Speaker 1: looking good, smelling good, feeling good has on their confidence
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  Speaker 1: and their success and and um. We find that guys
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  Speaker 1: are becoming more thoughtful about the ingredients that go into
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  Speaker 1: all of these products. Uh. And and you know that's
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  Speaker 1: why we have, you know, really high standards when it
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  Speaker 1: comes to formulating these things. You know, no sulfates, no parabins,
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  Speaker 1: um and always really honest, uh, you know, fragrances that
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  Speaker 1: you can understand like men and cedar would and and
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  Speaker 1: not you know, like you know, bear Musk. I just
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  Speaker 1: wanted to know who came up with the idea of
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  Speaker 1: one wife, Charlie. I did. Okay, well listen, it's not
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  Speaker 1: it's you know, we get a lot of laughs and
• 10:29
  Speaker 1: a lot of sers, but it's a serious product. It's
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  Speaker 1: it sells big time. I mean, I've had people come
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  Speaker 1: up to me in the airport on conference calls, put
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  Speaker 1: the phone down and say, you know, Mike, You've changed
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  Speaker 1: my my life, thank you, and then unzip their bag
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  Speaker 1: and show me the travel whites wives. I had a
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  Speaker 1: guy in a hot tub at a conference in Hawaii,
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  Speaker 1: um come up to me and tell me that his
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  Speaker 1: wife made him buy those because she said he wasn't
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  Speaker 1: doing a good enough job. Dollars shaved cub Club, but
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  Speaker 1: chief product Innovation off to Foddy Mourad and Michael Duban,
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  Speaker 1: the founder retailers selling off big time to day after
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  Speaker 1: Macy's fall, Shorts, Amazon, the Lone Wolf moving higher. Find
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