Unilever to buy Dollar Shave Club

U.S: Unilever to buy Dollar shave club, a US based male grooming products company. The company is planning to expand its presence in growing male grooming market and will also sharpens its rivalry against P&G which owns the Gillette brand. The surprise moves by Unilever, who manufactures Axe body spray and Dove soap, shows how e-commerce is disrupting the market for consumer packaged goods. The online market in recent years have taken over the market many companies are paying money to e-commerce companies for selling direct to customers via online subscription.

Dollar Club's turnover is expected to grow to over USD200 million in 2016 from USD152 million in 2015. According to the grooming market growth Unilever to pay more than the annual sales for Dollar shave club which is almost higher than any U.S consumer deals which are almost below four times. Unilever 60 percent of the U.S. subscription "shave club" market, versus only 5 percent for P&G's Gillette, and 11 percent of the U.S. blades market overall. Unilever has been competing with P&G for the market share in U.S men’s grooming market, in 2013, both the companies, reduced the market prices for their hair care products so as to increase their market presence which affected their profit margins.

According to the TechSci research, U.S. market for men's grooming products increased by 4 percent in 2015 to USD8.5 billion, online sales of men's shaving products which it said to be reached USD342 million, due to increasing demand of the male grooming products many companies are introducing the grooming products and making them available through the online retail space also.