Digital is ubiquitous and continues to change the industry landscape. Many people still consider Digital to be very front end centric. But digital has started disrupting some very traditional business models.
The global shaving industry is around $ 17 Billion. It is based on one of the older business models which is called the razor and blade model. The model is simple, you might get a cheap razor but eventually you have to pay for the blade. It’s a recurring cost and has the following features
1) The razor is relatively cost effective
2) But the blades are not
3) They are a recurring expense
4) And you re locked in as if you want to change the blades, you will have to change the razor as well