02-11-2020, 11:26 AM
#1
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Last May, Schick, the second largest producer of cartridge razors after Gillette, announced it was acquiring Harry's for 1.37 billion dollars.  Since their inception, Harry's and Dollar Shave Club have been cutting into Schick and Gillette sales with significantly less expensive cartridge razors sold by subscription.  The acquisition ran into trouble when the Federal Trade Commission sued to block it, alleging that it would result in less competition in the cartridge razor market. I just read in today's Wall Street Journal that Schick decided to give up its intended acquisition of Harry's, rather than fight the FTC's suit.  So, Harry's will remain an independent company.

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 02-11-2020, 12:27 PM
#2
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Maybe the margins are razor thin?

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 02-11-2020, 02:36 PM
#3
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Men’s shaving has taken a beating over the past couple years due to style trends. Edgewell was probably looking for any excuse to bail and Harry’s will probably sue because their golden parachute just floated away.

Direct to consumer shaving gear subscriptions are not showing the return everyone was expecting.


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 02-11-2020, 02:45 PM
#4
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Gotta figure Amazon has a role in this dynamic.

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 02-11-2020, 03:35 PM
#5
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(02-11-2020, 02:36 PM)SteelTown Wrote: Direct to consumer shaving gear subscriptions are not showing the return everyone was expecting.


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From what I read in the article, Harry's is growing its number of subscribers, but losing money.

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 02-11-2020, 05:07 PM
#6
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(02-11-2020, 02:45 PM)jackgoldman123 Wrote: Gotta figure Amazon has a role in this dynamic.

Definitely.

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 02-11-2020, 05:07 PM
#7
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(02-11-2020, 03:35 PM)TheLegalRazor Wrote:
(02-11-2020, 02:36 PM)SteelTown Wrote: Direct to consumer shaving gear subscriptions are not showing the return everyone was expecting.


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From what I read in the article, Harry's is growing its number of subscribers, but losing money.

Market share is great but, not at the expense of taking a loss. That is, unless you can sell.

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 02-11-2020, 06:06 PM
#8
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I really dislike how the FTC can stop this. To me it is just wrong and I believe these companies should be allowed to do what they feel is best for their investors, employees, and customers. 
Steve

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 02-11-2020, 06:40 PM
#9
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(02-11-2020, 06:06 PM)Smooth Steve Wrote: I really dislike how the FTC can stop this. To me it is just wrong and I believe these companies should be allowed to do what they feel is best for their investors, employees, and customers. 
Steve

I wish someone would have enforced anti trust legislation and stopped Amazon.

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 02-11-2020, 06:40 PM
#10
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The problem is that what companies decide to do may not be in the best interest of customers or the market. Both regulated and free markets have their issues: https://www.investopedia.com/articles/ec...lation.asp

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 02-11-2020, 09:24 PM
#11
  • pbrmhl
  • Senior Member
  • Seattle
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I'll try not to get on a high horse but, to put it simply, our antitrust laws have not been enforced for decades, essentially since I entered the practice of law in the early '80s. Back then, most major law firms had an "antitrust department," actively devoted to fighting anti-competitive behavior on behalf of clients who were fighting monopolistic practices. In the post-Reagan era, those departments are gone. In my Seattle market, I don't anymore know a single lawyer who practices antitrust law. Thank God the FTC is still able to function though, in the current era, I always suspect there are invisible hands dictating outcomes...

I have no opinion as to whether this was a good decision. I'm just pleased that the FTC pulls its head out of the sand once in a while.

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