Gillette
Alex Brogan
King Camp Gillette's epiphany arrived in 1895 while struggling with his straight razor. A traveling salesman accustomed to daily annoyances, he envisioned something revolutionary: disposable blades that eliminated the tedious ritual of sharpening. The idea was elegantly simple—thin steel that could be discarded when dull, replaced in seconds rather than maintained for years.
What followed was six years of what Gillette would later call "dark days." Metallurgists dismissed his vision as impossible. The steel couldn't be manufactured thin enough yet strong enough for safe shaving. Engineers shook their heads. Investors stayed away.
Gillette persisted.
The Breakthrough Partnership
In 1901, Gillette found his catalyst in William Nickerson, an MIT-educated machinist who solved the manufacturing puzzle that had stumped everyone else. Together, they founded the American Safety Razor Company, later renamed Gillette Safety Razor Company. Vision met execution. The theoretical became tangible.
Their first year delivered humbling results: 51 razors and 168 blades sold. Hardly the stuff of business legend. But by 1904, the numbers exploded—90,884 razors and 123,648 blades. Gillette had tapped into a massive unmet need, transforming a daily chore into a quick, convenient routine.
"We had many dark days, but I never lost faith in the idea."
The growth wasn't accidental. Gillette had stumbled onto something more valuable than a better razor—he'd created a recurring revenue machine. Customers bought the handle once but needed new blades forever. The real genius wasn't in the product but in the business model.
Building the Moat
As Gillette expanded internationally and competitors emerged, the company's response revealed its deeper strategic thinking. They invested heavily in research and development, constantly improving both razors and blades. Each innovation created a small but meaningful barrier to competition.
The twin-blade razor arrived in 1971. The first razor with a lubricating strip in 1985. The groundbreaking Mach3 in 1998. Each advancement was evolutionary, not revolutionary—customers could upgrade without feeling overwhelmed or manipulated.
"Innovation is not just about new products. It's about constantly finding better ways to serve your customers."
This philosophy, articulated by former CEO James Kilts, drove Gillette through decades of sustained growth. But the 21st century brought new challenges that tested every assumption about the shaving market.
The Disruption Response
Changing grooming habits, online subscription services, and aggressive low-cost competitors like Dollar Shave Club threatened Gillette's dominant position. The company that had built its success on premium pricing and retail distribution suddenly faced a world where customers could get "good enough" razors delivered to their door for a fraction of the cost.
Gillette's response revealed hard-won wisdom about market disruption. Rather than dismissing the threat or doubling down on their existing model, they launched their own subscription service. They developed products for sensitive skin and expanded offerings for women and developing markets. Most crucially, they were willing to cannibalize their own business model to stay relevant.
"We're not just selling razors. We're helping people feel confident and look their best. That mission hasn't changed since 1901."
Gary Coombe, Gillette's current CEO, understands that the company's durability comes not from any single product or business model, but from its relentless focus on solving customer problems.
The Numbers Behind the Legacy
Today, Gillette maintains approximately 54% of the U.S. razor market—a remarkable achievement given the competitive pressure of the last decade. Parent company Procter & Gamble reported net sales of $21.9 billion in Q1 2024, up 6% year-over-year, with Gillette remaining a significant contributor to that performance.
The company that began with 51 razor sales in 1903 now operates as a global grooming empire, but the core insight remains unchanged: create a system where customers return not because they have to, but because you consistently deliver superior value.
Strategic Lessons from 125 Years
Persistence trumps perfection. Gillette spent six years hearing "impossible" from experts. The breakthrough came not from abandoning the vision but from finding the right partner to execute it. Most revolutionary ideas face extended periods of doubt and failure before achieving breakthrough.
Find your William Nickerson. Visionaries need executors. Gillette had the insight; Nickerson had the technical expertise to make it real. The most successful partnerships combine complementary skills rather than similar ones. Don't let ego prevent you from acknowledging what you don't know.
Build recurring revenue, not just better products. Gillette's genius wasn't creating a superior razor—it was designing a system that generated ongoing customer value and company revenue. The handle was the gateway; the blades were the business. As Gillette himself said: "Give 'em the razor; sell 'em the blades."
Innovate incrementally to avoid customer confusion. Gillette added blades gradually—one, then two, then three. Each step improved performance without overwhelming users. Revolutionary changes in customer experience often work better as evolutionary improvements in product design.
Cannibalize yourself before competitors do. When subscription services threatened Gillette's retail dominance, they launched their own rather than defending an obsolete distribution model. Disrupting your own business model hurts less than watching competitors do it for you.
The razor blade business model that Gillette pioneered—selling the platform cheaply to create demand for ongoing consumables—now powers everything from printers and cartridges to gaming consoles and software. But the deeper lesson isn't about pricing strategy. It's about understanding that sustainable competitive advantage comes from creating systems that align customer value with business economics over time.
In an era of rapid technological change and shortened product cycles, Gillette's century-plus run offers a different kind of inspiration. Not the hockey stick growth of venture-funded startups, but the compound returns of solving a fundamental human problem better than anyone else, year after year, decade after decade.
That's the real edge.
Further Reading
King C. Gillette - Wikipedia - Biographical information on Gillette's founder
Gillette Our History - Official company history from Gillette
Gillette's Strange History with the Razor and Blade Strategy - Harvard Business Review article on Gillette's pricing strategy
Razor Blade Business Model: Meaning, History, Problems - Investopedia article on the razor-razorblade business model