Australian men’s grooming company Oscar Razor has adopted a crowdfunding model to launch a subscription service in the lucrative, but crowded, US market.
An online subscription-based model with more than 10,000 members across Australia who receive a specific number of razors every two to four months, Oscar razor hopes to raise US$1 million via a Wefunder campaign to achieve its North American ambitions.
Founder Oscar de Vries believes that people are no longer satisfied with “buying from the Gillettes of the world”.
“They want a reliable, more affordable and personable product that they can stick with time and time again.”
In the US, Oscar will pit itself against Dollar Shave Club, which was sold to Unilever for upwards of $1 billion, and Harry’s. De Vries believes his venture will have an upper hand given a focus on sustainability, organic botanicals and minimal-to-no chemical input.
“While it feels a little David vs Goliath, we believe the Australian ‘true-blue’ enterprising spirit combined with a product that domestically has done really well, has put us in a strong position to cause a big stir in the American men’s grooming e-commerce space,” said de Vries.
“There is a huge trend for natural shaving products and many stores in America are really keen on natural, organic Australian men’s personal grooming products.”
De Vries believes the timing is right for the foray, given the “seismic shift” to online shopping and online subscription-based services during the Covid-19 pandemic.
Oscar Razor has opted for the crowdfunding route ahead of more traditional capital-raising means, because it is selling not just a product but “the fantastic story that goes with it”.
“Crowdfunding is now becoming one of the more popular ways to raise capital and is especially suited to brands that fit within a niche consumer market.
“With potentially thousands of backers, it also means that investors get to share the journey with us and become part of what is known as the Oscar Founders Club.
“Other companies like Tampon Tribe and Vampr were created by Australians, launched in the US through successful campaigns on Wefunder and have since become multi-million-dollar enterprises,” said de Vries.