t

os
W26675

LETSSHAVE: SELECTING A PRODUCT-CENTRIC VERSUS

PROMOTION-CENTRIC STRATEGY

rP
Rakesh Gupta, Amit Shukla, Joel Joseph, and Kuvam Uppal wrote this case solely to provide material for class discussion. The
authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised
certain names and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights

yo
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveypublishing.ca. Our goal is to publish
materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs

Copyright © 2022, Ivey Business School Foundation Version: 2022-08-19

For some time now, Sidharth Oberoi, founder and chief executive officer of LetsShave, had been
deliberating the company’s next move. He convened a meeting of his core team on June 21, 2021 to discuss
op
whether LetsShave should continue with its existing product-centric growth strategy, or adopt an aggressive
promotion-centric strategy. Incorporated in 2015, LetsShave catered to the grooming needs of Indian men
by offering quality products at affordable prices. The venture was growing at a steady pace, acquiring over
half a million customers and was expected to turn profitable in the near future.1 It had set an ambitious
target of reaching US$10 million2 in annual revenue by 2023, but continuing at its pace in 2021, the target
seemed difficult to achieve.3 Rival start-ups had been able to attract much larger customer bases and had
tC

achieved higher revenues than LetsShave by adopting aggressive promotion-centric strategies. Oberoi
realized that the time had come to make the decision of whether LetsShave should continue with its existing
strategy, or change direction and adopt a more aggressive one.

LETSSHAVE: FOUNDER AND IDEA

No

Oberoi was born in Ambala, India, and grew up in Chandigarh, a mid-sized city in North India with a population
near one million. He studied industrial engineering, with a minor in entrepreneurship and innovation, at Purdue
University in the United States. Following his studies, he joined the CSA Group in the United States, which
developed standards and codes, as a project engineer.4 Oberoi’s job responsibilities included conducting
consumer product evaluations, which helped manufacturers analyze their products’ performance.5 These
evaluations drove decisions that ensured customer satisfaction, loyalty, and business success for the group. This
work left an imprint on him about the importance of product quality in driving customer satisfaction.

The idea for LetsShave came to Oberoi during a trip to India in 2014 while he was shopping with his
Do

mother.6 The mall in Chandigarh where they were shopping carried major international brands across all
categories, but Oberoi observed that the shaving category lacked the selection of large brand name items,
with the exception of Gillette, and that the Gillette razors were quite expensive. He found it surprising that
consumers had so little choice and that they were unaware other brand options might exist. Oberoi realized
that people needed alternatives and he sensed an opportunity.

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 2 W26675

t
Once back in the United States, Oberoi began searching for shaving brand options and stumbled upon Dorco

os
razors during his visit to Dollar Shave Club in California. Dorco Co. Ltd. (Dorco), a Korean razor
manufacturer, was an official supplier to Dollar Shave Club and had more than sixty years of experience
making high-quality razor blades. After using a Dorco razor, Oberoi fell in love with the product because
of its effectiveness; it offered a far better shave at a much lower price. This was the inspiration that drove
his interest in bringing Dorco razors to India. Oberoi contacted the company to pursue the idea but initially

rP
received no response. It seemed far-fetched that the Korean giant would partner with him to enter a large
and competitive Indian market; the market had a variety of start-ups and was dominated by Gillette’s strong
branding, which had created an entry-level barrier. Due to his persistence, however, Oberoi ultimately
reached Dorco and convinced it to supply him razors in an exclusive partnership.

LETSSHAVE: INITIAL CHALLENGES

yo
Oberoi left his well-paying job and returned to India to begin his venture. He founded LetsShave in 2015
and chose the name carefully to convey the product category in which the company was operating.7 The
focus on quality, backed by a world-class manufacturer at affordable prices, articulated the company’s
mission to offer consumers innovative products at the right price points.

Building a company from scratch was not an easy task—Oberoi had no prior experience running a business.
He recognized that consumers associated the quality of a product with its price, so it was a challenge to
op
convince them of the superior quality of LetsShave’s products when these were offered at less expensive
prices. It was not easy to understand the shaving behaviour of consumers. Most were unsure about how
long a single blade would last and what kind of blade should be used for specific skin and hair types.
To overcome these challenges, LetsShave created a product page on its website with a recommendation
tab that informed customers about which blade would best suit their skin and how often to change them
(see Exhibit 1). The company chose to operate online to cut intermediaries, cut overhead costs, and
tC

develop direct reach with consumers.

Based on his prior experience, Oberoi used artificial intelligence (AI) while developing the website to
attract more visitors and enhance customer experience. The biggest challenge was building a brand without
the visibility of being available in every Kirana store,8 so to gain a foothold in the market, LetsShave used
inexpensive social media marketing. To mark the end of “No Shave November” in 2016, the company
launched a groovy and funny music promotional video.9 The video featured the lyrics “I got your face bro”
No

and smartly sketched pictures of situations in which men needed to shave, and showed how a clean-shaven
look had saved the day.10 Targeting young and upwardly mobile consumers, the video was a statement of
how Indian men would come of age when it came to grooming. Oberoi explained, “While producing the
video, we weren’t trying to sell LetsShave as a product, but were making a grooming statement.”11

Oberoi preferred Chandigarh over larger cities when it came to opening the corporate office, as it offered
good infrastructure, better connectivity, and a high quality of living. Further, he believed that in Chandigarh,
operating costs would be lower, and the employee retention rate would be higher compared to metropolitan
cities like Bangalore, Delhi, and Mumbai. Oberoi’s father, Ashwani Oberoi, provided the initial funding
Do

for LetsShave and became the director of the company.12 His mother, Sonia Oberoi, a dentist and
cosmetologist by profession, was on-boarded as a consultant to approve new razors.13 Within a few months,
Oberoi had hired the people needed to form his core team.

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 3 W26675

t
THE MEN’S GROOMING MARKET

os
Until the early twenty-first century, grooming for men in India had consisted only of haircuts and shaving.
With the onset of globalization, changing socio-cultural norms, a rise in income levels, and increased
Internet usage, men’s grooming patterns changed. The emergence of social media platforms like Facebook,
Instagram, and Snapchat led them to become more self-conscious, especially the younger generation.14
They became more aware of their grooming as posts of celebrities’ routines contributed to establishing

rP
social trends. Growth in both organized retail and e-commerce was another factor that led to the rising
interest among men for grooming products.15
In 2015, the Indian men’s grooming market was valued around $1.10 billion, then grew by 10.2 per cent in
2016 to reach $1.20 billion. The market grew at a compound annual growth rate (CAGR) of 9.8 per cent
from 2017 to 2019 to reach $1.60 billion, and was projected to grow at a CAGR of 4.3 per cent to reach
$1.92 billion by 2025.16 The men’s grooming segment was comprised of three main categories: shaving,

yo
toiletries, and fragrances. The shaving category was the largest with a market share of 42 per cent, including
razors, creams, and gels, and was expected to grow at a steady pace.17 Within this category, there were five
sub-categories: razors and cartridges, trimmers, cream/gel/foam, aftershave lotions, and beard grooming.
The razors and cartridges category was expected to grow at a CAGR of 5.8 per cent between 2020 and
2025, while the trimmer category was expected to grow at a CAGR of 2.5 per cent during this same period.18
The cream/gel/foam and aftershave lotions categories were growing at a slower pace and were not
contributing significantly to the growth of the shaving category.19
op
The male toiletries market comprised mainly skin-care products such as soap and shampoo, which was the
second-largest segment with a market share of 39 per cent. The segment also consisted of aftershaves and
colognes as well as men’s pre-shave and post-shave cosmetics, and had revenue of $641.35 million in 2019,
growing at a CAGR of 10 per cent between 2015 and 2019. Market consumption volume increased with a
CAGR of 4.5 per cent between 2015 and 2020, to reach a total of 1.21 billion units.20 The deodorants and
antiperspirants segment was expected to grow at a CAGR of 9.25 until 2025.21 The male fragrances market
tC

in India registered a positive growth rate of 3.3 per cent during the period from 2015 to 2020, with a sales
value of $210.69 million and market share of 19 per cent.22

MAJOR PLAYERS IN INDIA

The established players in men’s grooming had wide reach with strong distribution networks, which ensured
that they continued to dominate the market. Gillette was the market leader for razors and had been at the
No

centre of men’s grooming for more than 100 years with strong brand equity built on quality products.23 It
offered a wide range of stock-keeping units, from the lower priced 7 O’Clock Ready disposable razors to
the premium Fusion ProGlide razors. Largely, the men’s grooming category was propelled by the growth
of the shaving segment. The cream segment included conventional players such as Old Spice (Proctor &
Gamble), Axe, Emami, Dettol (Reckitt Benckiser), and VI-John. VI-John was the shaving cream segment
leader, as it provided price-sensitive products. Brands such as Park Avenue (Raymond Limited), Nivea,
Axe, and Old Spice offered premium aftershaves.24
Do

Main Start-Ups

The last decade marked a shift in consumer behaviour, with men becoming more mindful about their
grooming needs. This, coupled with the progression of e-commerce, provided companies an opportunity to
reach the targeted consumers, giving way to new entrants and resulting in the emergence of many start-ups.
Some of these developed a firm presence in the fast-growing category and offered curated products as per
the growing demands of new-generation consumers (see Exhibit 2).

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 4 W26675

t
Bombay Shaving Company

os
Founded in 2015, Delhi-based Bombay Shaving Company (BSC) focused on catering to the premium
segment of the men’s grooming category. The idea of BSC had struck founder Shantanu Deshpande by
chance when he learned from a friend about how new start-ups in the United States had been challenging
players, such as Gillette.25 Deshpande meticulously researched the category and realized that an opportunity

rP
existed to target premium, upmarket consumers who were dissatisfied with the standard choices available
in the market.26 There appeared to be an emerging trend: shaving was not only the simple act of grooming;
people wanted personalized and skin-sensitive products. He left his job at McKinsey & Company and took
the plunge of starting his own company.27 BSC offered over seventy-two products in shave care, bath care,
beard care, and skin care. The company had received funding of over $17.7 million by March 2021 and
was valued at $31.5 million. With an annual revenue of $13.32 million, BSC spent more than 30 per cent
of its revenue on advertising and sales promotion.28

yo
Beardo

Started in 2015, Ahmedabad-based Beardo disrupted the Indian men’s grooming market by addressing a
gap in the available grooming options for men. It had identified the trend of beard-growing among men,
though it appeared that no brands were catering to this niche. Initially, Beardo focused on beard grooming
products like beard oil, though it later expanded its portfolio with face wash, lotion, and lip balm, among
op
other products. The company had received funding of $8.6 million and was valued at $18 million. The fast-
moving consumer goods (FMCG) giant Marico acquired a 45 per cent stake of Beardo in 2017, and the
company reached annual revenue of $11.01 million by the end of 2020.29 Sensing its potential, Marico
obtained a majority stake at an undisclosed amount in 2020.30 An aggressive promotion-centric approach
helped Beardo grow its revenue, quickly reaching $11 million in fiscal year (FY) 2020. This same year, the
company spent more than 30 per cent of its revenue ($3 million) on advertising and sales promotion.31
tC

Ustraa

Started in 2015, Delhi-based Ustraa was a men’s grooming brand from the company Happily Unmarried, which
was the brainchild of Rajat Tuli and Rahul Anand and that catered to the lifestyle needs of bachelors.32 Ustraa
provided high-quality products that focused on hair growth, beard growth, and razors and trimmers. Its valuation
No

was $15 million; it had raised funds of $8.8 million by November 2019 and had annual revenue approaching
$8.41 million in 2020.33 The aggressive marketing approach of advertising and sales promotion adopted by
Ustraa cost more than 25 per cent of its revenue, which was approximately $2 million in FY 2020.34

The Man Company

In 2015, Gurgaon-based The Man Company (TMC) became one of the leading direct-to-consumer brands
catering to men’s grooming needs. Harshit Dhingra, founder of TMC, aimed to provide quality head-to-toe
Do

grooming solutions for urban males.35 The company offered a wide range of products, such as shave gels,
face wash, shampoos, and body wash.36 It had received funding of over $17 million, of which $3.53 million
came from major FMCG player Emami Ltd., which had a 30 per cent stake. The company had annual
revenue of $11.92 million by FY 2020, and the venture was valued at $16.79 million, having spent roughly
35 per cent of its revenues on advertising and sales promotion.37

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 5 W26675

t
LetsShave

os
Founded in 2015 by Oberoi, Chandigarh-based LetsShave aimed to provide state-of-the-art shaving and
grooming products at affordable prices. With a prime focus on quality, the company began with a strategic
partnership with Dorco. In 2020–21, it received funding of $2.62 million and was valued at $9.11 million
with annual revenue of $1.49 million. Like its international partner Dorco, LetsShave adopted a product-

rP
centric approach to grow, spending limited money on advertising, which was only 12 per cent of its
revenues. LetsShave secured financing from an investment arm of Wipro Consumer Care and Lighting and
from Dorco, and further followed Dorco’s marketing approach by spending only on digital marketing.

COMPETITIVE LANDSCAPE

All of these major player start-ups began in 2015 and broadly targeted the same young segment of

yo
consumers—who were sensitive about their grooming needs—with a wide product range.38 The nature of
the category was such that once consumers became accustomed to a particular brand, they developed brand
loyalty. This resulted in a situation where the start-ups needed to increase their customer base with
aggressive competitive strategies (see Exhibit 3) that targeted the same set of consumers. Most had spent a
lot of the money they had raised to achieve this objective.39 Players like BSC, Beardo, TMC, and Ustraa
aligned their marketing to target niche segments.40 BSC aimed at the premium segment by creating
personalized products, whereas Beardo and TMC focused on educating customers with aggressive
op
marketing.41 Most start-ups also attempted to gain wider visibility and acceptance for their products through
celebrity endorsements and event promotions and indulged in other promotional activities such as exclusive
partnerships, event campaigns, and affiliate marketing. In this effort, they spent heavily on advertising and
sales promotion, allocating nearly 25–30 per cent of their revenues towards it. Further, these players focused
on higher-end customers, with their products priced closely to market leader Gillette. The shaving kits
offered by BSC, Beardo, TMC, and Ustraa were priced between ₹1,50042 and ₹2,500.43
tC

In contrast, LetsShave adopted another approach and did not invest heavily in marketing. It believed that
making quality products and making them available at affordable prices was the key to growth. It adopted
a product-centric approach beginning with its partnership with Dorco, the well-known global player known
for its quality razors, which lent LetsShave credibility. LetsShave chose not to use celebrity brand
endorsements and avoided promotional partnerships, thus spending conservatively on advertising (between
10 and 12 per cent of its revenue). Taking a cue from partner Dorco, it focused on digital marketing only.
Further, LetsShave deviated from the industry trend of premium pricing and positioned itself as a quality
No

brand that offered products at competitive prices. Its shaving kits and combo packs were priced under
₹1,500, and it responded to its competitors by stating that its products were not overpriced.

In 2019, within the men’s grooming category (especially shaving) in India, e-commerce only contributed
to roughly 10 per cent of sales, whereas 90 per cent came from retail stores.44 Many start-ups were quick to
realize this and started building their offline presence. BSC, Beardo, TMC, and Ustraa focused on modern
retail stores, such as premium salons and pharmacies, to introduce their products. LetsShave continued to
strengthen its online presence by introducing its products on several websites. It planned to exhaust the
potential sales from its online approach before venturing into physical stores, and distributed its products
Do

this way across more than 18,000 pin codes (similar to postal codes) in the country.

When it came to product range, all start-ups focused on grooming products like shaving razors, disposable
razors, blade refills, and gels. LetsShave focused on innovative products like body- and nose-hair trimmers,
including groin and armpit razors, offering more than fifty products in its portfolio. These moves allowed
LetsShave to spend far less and to focus on differentiating from its rivals.

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 6 W26675

t
LETSSHAVE: FUNDING

os
The venture was bootstrapped with initial funding support from Oberoi’s father, Ashwani Oberoi, who
became the first investor and director of LetsShave, and held a majority stake in the start-up.45

In October 2018, Dorco became an investor by funding an undisclosed amount for a 10 per cent stake in

rP
LetsShave. At the time of investment, Ken Kwak, director at Dorco, stated that it considered LetsShave
the right partner for the long-term vision of the grooming company’s “differentiated capabilities.”46
Commenting on the deal, Oberoi said, “"Our partner became our investor; this validates our business
model and growth potential.”

In February 2020, Wipro Consumer Care Ventures (the venture capital fund of Wipro Consumer Care
and Lighting, a $1 billion FMCG business owned by tech billionaire Azim Premji) acquired a minority

yo
stake in LetsShave for an undisclosed amount. Sumit Keshan, managing partner of Wipro Consumer Care
Ventures, cited that the investment was in line with maintaining the company’s strategy by leveraging
emerging online opportunities to target the millennial population.47 He stated, “LetsShave offers high
quality products and is a challenger brand in a space dominated by a single large player. They have a
promising team with strong market understanding, usage of technology, and have the ability to spot niche
consumer requirements and respond quickly.”

During this round of financing, existing investor Dorco increased its stake to 15 per cent from 10 per cent.48
op
Oberoi stated that with this round of funding the company wanted to chart a strong growth trajectory and
commit to making LetsShave a one-stop solution provider for shaving and grooming personal care products.
The funds were used to expand its portfolio, bolster its online presence, and enter the women’s shaving
category. Oberoi planned to rapidly expand its newly launched portfolio of shower, beard, body, and electric
trimmers to become a one-stop grooming solution for both men and women. Commenting on Dorco’s
decision to raise its stake, Kwak said, “The powerful combination of our high-quality products and
tC

LetsShave’s passionate team, digital marketing expertise, and Wipro’s strong support will help us reach the
millennial population and make LetsShave an even stronger brand for Indian consumers.”

LETSSHAVE: PRODUCT-CENTRIC GROWTH STRATEGY

Since its inception, LetsShave had been providing high-quality products at affordable prices and used this
No

as a mantra for growth. Oberoi believed that marketing activities such as social media marketing, influencer
advertising, and celebrity endorsements were fine but would not be effective if the product failed in
delivering superior customer value. Therefore, he refrained from using aggressive marketing tactics and
focused on a product-centric approach for growth.

LetsShave partnered with Dorco to bring disruptive innovation into the shaving product category. The
company utilized Dorco’s patented angulated blade platform for its blades and launched a unique six-blade
razor in the marketplace.49 Communication about the angulated blade focused on the revolutionary
technology of the product rather than the celebrity endorsements other start-ups were focusing on. Because
Do

of the confidence LetsShave had in its quality, it adopted a unique no-risk return policy where after one
week, if customers were not satisfied with the product, they could simply request a full refund. Traditional
brands required that customers buy both a new handle and new blades or cartridges when upgrading or
downgrading razors, which often meant a higher cost. LetsShave reduced costs for customers by launching
a new handle with a standard docking system that could fit all blade types and cartridges. LetsShave also
offered a subscription-based shaving product plan, through which it developed a loyal set of customers and
a high customer repeat rate of close to 50 per cent.

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 7 W26675

t
Since its launch in November 2015, LetsShave had reached a potential customer base of more than five

os
million people and sold more than two million units.50 By January 2021, it had sold roughly 2,000 products
a day with a healthy repeat purchase rate. About 90 per cent of the sales came from its own website, while
the remaining 10 per cent came from partner websites. The company had transformed itself from a mere
shaving product company to a complete grooming enterprise by entering shower, body, face, beard, and
electric trimmer categories. All products from LetsShave.com were available on e-commerce sites like

rP
Amazon.com, Nykaa, Flipkart, Paytm, BigBasket, Snapdeal, and more.

LetsShave’s journey had not gone unnoticed, and the company was awarded “India’s Most Promising Brand
2016” at the World Consulting & Research Corporation IdeasFest.51 In 2019, it received the “E-Commerce
Business of the Year” award from the Small Business awards presented by Entrepreneur Media, Zee
Business, and The Economic Times.52 Oberoi was also part of the prestigious Forbes India 30 Under 30 list
in 2021, which recognized successful young leaders who had dared to do something different.

yo
LETSSHAVE: CHALLENGES AND OPTIONS AHEAD

LetsShave was growing steadily, but other start-ups with similar value offerings—and armed with bigger
marketing budgets—had taken aggressive approaches to acquire new customers for top-line growth. These
companies had invested in creating offline presences and strategic partnerships, and hired celebrities and
influencers to increase their brand awareness. A quick glance at LetsShave competitors showed that Beardo
op
had grown 81 per cent year-on-year, Bombay Shaving at 152 per cent year-on-year, and TMC by almost
130 per cent year-on-year.53 Although none of them was profitable yet, they had captured market share at
a much faster pace than LetsShave. The fact that these companies targeted the same audience, and that the
category ensured a high rate of repeat customers, posed a strong challenge for LetsShave going forward.

To scale its business, LetsShave could adopt a hybrid channel approach by entering the physical channel,
tC

like its competitors had done. This meant that it would have to raise funds to increase collaboration and
partnerships with third-party players, considering logistics, storage, and retailers. The physical retailers
would require a markup of 10 to 15 per cent, which would affect either its pricing or margins. If LetsShave
were to adopt the hybrid channel strategy, it needed to have the backing of investors.

The downside of LetsShave’s product-centric approach was that other start-ups investing heavily in
promotion were growing at a much faster pace. Even though LetsShave offered a lower-price and higher-
No

quality advantage, it needed to evaluate the available options to decide whether to adopt a more aggressive
approach for growth in order to keep pace with its competitors.

LetsShave could pivot to invest in marketing activities such as brand endorsements, event sponsorships,
and promotional campaigns and partnerships to increase its market presence, resulting in a larger set of
potential customers. Direct selling and e-commerce formed approximately 10 per cent of the sales within
the grooming product category. Adopting a hybrid approach to distribution was an option to obtain a larger
reach, and LetsShave could leverage its Dorco partnership to enter international markets selectively. By
doing this, for instance, LetsShave could choose which markets to enter based on the presence of Indian
Do

communities, as rival start-ups had not yet ventured outside of India.

Though it started as a brand that catered to men’s grooming needs, LetsShave had expanded to the women’s
segment and received a good initial response. The LetsShave Evior face razor for women had garnered
attention and the razor was ranked second-best selling on Amazon.com in July 2020.54 With its tag line
“Love Your Body,” the company aimed to again offer technically superior products but for a new target

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 8 W26675

t
audience. Based on the positive reaction to the women’s shaving segment, LetsShave could strengthen and

os
expand its women product line. Chief marketing officer of LetsShave, Asawari Pawar, said, “In the
women’s grooming market, we have grown a lot faster than we initially thought, we aim to become a
complete one-stop-solution for shaving and grooming products for men and women.”55

rP
GOING FORWARD

LetsShave regularly fine-tuned its approach, which had helped the venture to grow at a healthy rate of
roughly 40 per cent year-on-year, while the shaving segment was growing at a CAGR of 20 per cent.56 The
continued focus of high-quality products offered at affordable prices with a product-centric approach had
ensured strong brand loyalty with a steady rate of repeat customers. LetsShave had set an ambitious goal to
achieve $10 million in revenue, but by the end of 2019 the revenue stood close to $1 million (see Exhibits
4 and 5), reaching $1.3 million in 2020. LetsShave’s growth rate was much slower than its rivals.

yo
The promotion-centric approaches taken by the rival start-ups focused on aggressive marketing, using
celebrity endorsements to acquire more customers and chase higher valuation. This put pressure on Oberoi
to review the company’s product-centric approach. The question arose as to whether, by continuing with
its existing growth strategy, the company would be able to achieve its stated goal of $10 million in annual
revenue by 2023.57 LetsShave had the option to continue with its existing product-centric approach for
growth, but potentially miss its revenue target and reaching a larger customer base, or to rework its strategy
op
and adopt something more aggressive to realize its goal. Oberoi knew that time was running out—he needed
to decide quickly which option to choose.
tC
No
Do

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 9 W26675

t
EXHIBIT 1: LETSSHAVE’S PRODUCT-CENTRIC APPROACH

os
rP
yo
Source: “LetsShave Pro 4 Razor for Men,” LetsShave, accessed September 13, 2021, https://www.letsshave.com/men-
op
blades/pro-4-pack4.

EXHIBIT 2: MAJOR START-UPS IN THE MEN’S GROOMING CATEGORY

Total
Funding Valuatio Company
Company Location Year Founders Revenue Run Rate
tC

(Funding n (US$) Stage

Rounds)
Bombay
Shantanu $17.7 M $13.32 M (FY 20)
Shaving Delhi, India 2015 $31.5 M Series B
Deshpande (Six Rounds) $ 5.27(FY 19)
Company
Priyank
$8.6 M
Ahmedabad, Shah $11.01 M (FY 20) Acquired
Beardo 2015 (Three $18 M
India Ashutosh $6.06M (FY 19) by Marico
Rounds)
Valani
No

$8.8 M
Rahul Anand $8.41 M (FY 20) Funding
Ustraa Delhi, India 2015 (Three $15 M
Rajat Tuli $4.75 M (FY 19) Raised
Rounds)
$17 M
The Man Gurgaon, Hitesh $11.92 M (FY 20) Funding
2015 (Seven $16.79 M
Company India Dhingra $5.19 M (FY 19) Raised
Rounds)
$2.62 M
Chandigarh, Sidharth $1.49 M (FY 20)
LetsShave 2015 (Two $9.11 M Series A
India Oberoi $1.06 M (FY 19)
Rounds)
Do

Note: FY = fiscal year; M = million.

Source: “Bombay Shaving Company,” Tracxn, accessed September 12, 2021,
https://tracxn.com/d/companies/bombayshavingcompany.com; “Beardo,” Tracxn, accessed September 12, 2021,
https://tracxn.com/d/companies/beardo.in; “Happily Unmarried: Ustraa,” Crunchbase, accessed September 12, 2021,
https://www.crunchbase.com/organization/happily-unmarried; “The Man Company,” Crunchbase, accessed September 12,
2021, https://www.crunchbase.com/organization/the-man-company; “LetsShave,” Tracxn, accessed September 12, 2021,
https://tracxn.com/d/companies/letsshave.com.

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 10 W26675

t
EXHIBIT 3: MAJOR START-UPS AND THEIR COMPETITIVE STRATEGY

os
Promotional Brand Product SKUs & Distribution Target
Activities Ambassador Categories Shaving Kit Strategy & Audience
Avg. Price Reach
Bombay Celebrity Shaving, Beard Website, App, Predominantly
Ravichandran SKUs: 72
Shaving Endorsement, Care, Skin Care, E-commerce, Male
Ashwin (Cricket
Company Occasion Hair Care, Women Retail Shops

rP
Athlete) Avg. Price:
Marketing & Hair Removal, Reach: 13,500 Female
₹2,540
Personalization Bathing Products pincodes (Limited)
Beardo Celebrity
Beard Care, Hair Website,
Endorsement & SKUs: 80
Hrithik Roshan Care, Facial Care, Ecommerce,
Influencer
(Actor) Bath, Fragrances, Retail Shops Male Only
Marketing, Avg. Price:
Trimmers, Fashion Reach: 10,000
Sponsorships & ₹2,250
Accessories pincodes
Partnerships
Ustraa Celebrity SKUs: 41 Website, App,
Siddhant Men’s Shaving, Hair

yo
Endorsement, Ecommerce,
Chaturvedi Care, Beard Care,
Micro-influencer Avg. Price: Retail Shops Male Only
(Actor) Skin Care, Bath,
Marketing, No Shaving Reach: 12,000
Fragrances
Sponsorships Kit pincodes
The Man Celebrity
Men’s Shaving (No Website, App,
Company Endorsement, SKUs: 92
Ayushmann razors/trimmers), Ecommerce,
Occasion
Khurana (Actor) Hair Care, Beard Retail Shops Male Only
Marketing, Avg. Price:
Care, Skin Care, Reach: 14,500
Exclusive ₹2,000
Bath, Fragrances pincodes
Partnerships
op
LetsShave SKUs: 52 Website,
Men’s Shaving
Product-centric Ecommerce Both Male &
Women’s Shaving,
Promotions Product Avg. Price: Reach: 18,000 Female
Skin Care, Bath
₹1,500 pincodes

Note: SKUs = stock-keeping units. ₹ = INR = Indian rupee; US$1 = ₹72.857 on June 1, 2021. Pin codes = a six-digit code,
similar to postal codes, used by the Indian postal service.
Source: Created by the case authors based on case information.
tC

EXHIBIT 4: LETSSHAVE FINANCIALS

LETSSHAVE: Profit & Loss Statement (in ₹)

Particulars As of March 31, 2019 As of March 31, 2018

No

Revenue from operations

Sales of goods sold 68,453,183.00 80,226,069.00
Other income 787,835.00 18,65,802
Total revenue 69,241,018.00 82,091,871.00
Expenses
Cost of material consumed
Purchase of stock-in-trade 11,713,807.00 34,322,507.00
Changes in inventories 13,418,622.00 -9,773,843.00
Do

Employee benefit expenses 7,928,011.00 7,864,085.00

Marketing & sales promotion 8,400,000.00 4,900,000.00
Insurance expenses 85,184.00 74,477.00
Payment to auditors 55,000.00 52,000

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 11 W26675

t
EXHIBIT 4 (CONTINUED)

os
LETSSHAVE Balance Sheet (in ₹)

Particulars As of March 31, 2019 As of March 31, 2018

Expenses (Cont’d)

rP
Power & fuel 124,560.00 131,116.00
Finance cost 2,091,620.00 2,333,178.00
Depreciation & amortization expenses 999,636.00 1,414,282.00
Other expenses 70,466,665.00 61,328,773.00
Total expenses 115,283,105.00 102,646,575.00

Profit before exceptional, extraordinary, &

prior-period items and tax -46,042,087.00 -20,554,704.00

yo
Deferred tax -12,114,786.00 -5,288,011.00
Profit (loss) for the period -33,927,301.00 -15,266,693.00

Note: ₹ = INR = Indian rupee; US$1 = ₹72.857 on June 1, 2021.

Source: Created by the case authors based on company documents.

EXHIBIT 5: LETSSHAVE FINANCIALS

op
LETSSHAVE Balance Sheet (in ₹)

Particulars As of March 31, 2019 As of March 31, 2018

EQUITY AND LIABILITES
Share capital 6,666,660.00 6,000,000.00
Reserve and surplus 30,270,589.00 -15,600,450.00
tC

Long-term borrowings 14,465,371.00 14,846,682.00

Current Liabilities
Short-term borrowings 2,768,996.00 23,152,334.00
Trade payables 11,349,453.00 23,318,770.00
Other current liabilities 3,094,389.00 2,841,225.00
Short-term provisions 0.00 0.00
TOTAL 68,615,458.00 54,558,561.00
No

ASSETS
Non-Current Assets
Tangible assets 3,849,071.00 4,453,700.00
Intangible assets 305,522.00 300,757.00
Deferred tax assets (Net) 17,483,928.00 5,369,143.00
Other non-current assets 169,608.00 267,351.00
Current Assets
Current investments 11,542,200.00 0.00
Inventories 14,504,366.00 27,922,988.00
Do

Trade receivables 8,216,765.00 4,925,075.00

Cash and cash equivalents 3,240,007.00 6,534,484.00
Other current assets 9,287,859.00 4,765,610.00
Short-term loans and advances 16,132.00 19,453.00
TOTAL 68,615,458.00 54,558,561.00

Note: ₹ = INR = Indian rupee; US$1 = ₹72.857 on June 1, 2021.

Source: Created by the case authors based on company documents.

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 12 W26675

t
ENDNOTES

os
1
“An Engineer from Chandigarh Joins Hands With The Korean Shaving Giant Dorco to Redefine India’s Grooming Industry,” Inc42
BrandLabs, February 25, 2019, https://inc42.com/startups/how-is-an-engineer-from-chandigarh-redefining-indias-grooming-sector/.
2
All dollar amounts are in US dollars unless otherwise specified.
3
Siddharth S, “LetsShave: Hope to Hit $10 Mn in Sales in 3 Years,” Business World, March 8, 2019.
4
Rajiv Singh, “Sidharth Oberoi: Taking on Market Rivals with LetsShave,” Forbes India, March 19, 2021,
https://www.forbesindia.com/article/30-under-30-2021/sidharth-oberoi-taking-on-market-rivals-with-letsshave/66311/1.

rP
5
Rustam Singh, “This Startup is Revolutionizing the Way India Shaves,” Entrepreneur India, August 20, 2016,
https://www.entrepreneur.com/article/281192.
6
Singh, “Sidharth Oberoi.”
7
HT Correspondent, “LetsShave.com, Led by a 27-Year-Old Raises Capital from Wipro,” Hindustan Times, February 28, 2020,
https://www.hindustantimes.com/brand-post/letsshave-com-led-by-a-27-year-old-raises-capital-from-wipro/story-
y80vNvxNMU45xKscMs4CMO.html.
8
“Kirana Store,” LendingKart, accessed May 21, 2022, https://www.lendingkart.com/business-loans/kirana-store-business-plan/.
9
“No-Shave November 2021,” Prevent Cancer Foundation, November 20, 2021, https://www.preventcancer.org/event/no-
shave-november-2021/; LetsShave, “I’ve Got Your Face Bro,” Facebook video, 2:11, December 2, 2016,

yo
https://www.facebook.com/watch/?v=762980033854580.
10
LetsShave, “I’ve Got Your Face Bro.”
11
“LetsShave’s New Video Could Be India’s New Shaving Anthem,” Business Wire India, December 6, 2016
https://www.businesswireindia.com/letsshaves-new-video-could-be-indias-new-shaving-anthem-51243.html.
12
HT Correspondent, “LetsShave.com, led by a 27-Year-Old.”
13
Ani, “LetsShave - The Product Women Miss The Most During Lock-Down,” Business World, July 22, 2020,
https://www.businessworld.in/article/LetsShave-The-product-women-miss-the-most-during-lock-down/22-07-2020-300196/.
14
TechSci Research, “Male Grooming Market in India,” Consumer Goods and Retail, accessed May 21, 2022.
15
GlobeNewswire, “India’s $623M Personal Grooming Market: Competition, Forecast and Opportunities to 2024,” Research
op
and Markets, February 20, 2020.
16
Passport, “Men’s Grooming in India,” Euromonitor International, accessed April 12, 2021.
17
Business Wire, “Research and Markets: Men’s Grooming Market in India 2015-2020,” Research and Markets, accessed
April 12, 2021.
18
GlobeNewswire, “India’s $623M Personal Grooming Market.”
19
Grand View Research, “Electric Hair Clipper & Trimmer Market Size, Share & Trends Analysis Report by Product (Corded,
Cordless), by Distribution Channel (Offline, Online), by Region, And Segment Forecasts, 2019-2025,” Electronic & Electrical,
accessed April 12, 2021.
20
Grand View Research, “Razor Market Analysis Report by Product Type (Cartridge, Disposable, Electric), by consumer, by
tC

Distribution Channel (Supermarkets & Hypermarkets, Online), and Segment Forecasts, 2019-2025,” Electronic & Electrical,
accessed April 12, 2021.
21
MarketLine, Male Toiletries in India, Market Research.com, accessed April 12, 2021.
22
Business Wire, “Insights into India’s Fragrance Products Market, 2020: Pocket Perfumes Have Rose to Popularity,”
Research and Markets, accessed April 12, 2021; Subir Roy, “Gillette Marketing Strategy of Product Innovation,” The Strategy
Story, August 2, 2021, https://thestrategystory.com/2021/08/02/gillette-marketing-strategy-innovation/.
23
Roy, “Gillette Marketing Strategy.”
24
Rajiv Singh, “How Little Known Vi-John Emerged as a Leader in the Shaving Cream Market,” Economic Times, July 8, 2015,
https://brandequity.economictimes.indiatimes.com/news/business-of-brands/how-little-known-vi-john-emerged-as-a-leader-
No

in-the-shaving-cream-market/47982487.
25
Business Wire, “Research and Markets: Men’s Grooming.”
26
YourStory, “Bombay Shaving Company,” Consumer, accessed April 12, 2021.
27
“Bombay Shaving Company–The Story of Provenance Marketing,” GroCurv (blog), accessed April 12, 2021,
https://grocurv.com/blog/2020/02/19/bombay-shaving-company-the-story-of-provenance-marketing/.
28
Tracxn, “Bombay Shaving Company,” Companies, May 20, 2022.
29
Tracxn, “Beardo,” Companies, May 20, 2022.
30
Rajiv Singh, “How Beardo Disrupted the Men’s Grooming Market,” Forbes India, August 4, 2020,
https://www.forbesindia.com/article/onlinefirst-brands/how-beardo-disrupted-the-mens-grooming-market/61353/1.
31
Singh, “How Beardo Disrupted.”
32
“Bombay Shaving Company–The Story.”
Do

33
Crunchbase, “Happily Unmarried,” Organization, accessed April 12, 2021.
34
Harsh Upadhyay, “Ustraa’s Parent Happily Unmarried Raises Rs. 20 Cr in Series H Round,” Entracker, February 17, 2021,
https://entrackr.com/2021/02/ustraas-parent-happily-unmarried-raises-rs-20-cr-in-series-h-round/.
35
Singh, “How Beardo Disrupted.”
36
Devlinna Datta, “The Makers of ‘Ustraa’ Went from Being Unemployed to Opening the Ultimate Men’s Grooming Brand,”
MensXP, April 26, 2019, https://www.mensxp.com/special-features/features/48606-the-makers-of-lsquo-ustraa-rsquo-went-
from-being-unemployed-to-opening-the-ultimate-men-rsquo-s-grooming-brand.html.
37
Sukanya Mukherjee, “Emami Pumps $3 Mn in Men’s Grooming Startup The Man Company,” Inc42, Dec 7, 2017,
https://inc42.com/buzz/emami-the-man-company-grooming/

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Page 13 W26675

t
os
38
“From Happily Unmarried to Ustraa: How Men’s Grooming Brand had a Digital Makeover to Tap into $1.2Bn Market,” Inc42
BrandLabs, September 7, 2021, https://inc42.com/startups/from-hu-to-ustraa-digital-makeover-into-1-2-bn-mens-grooming-market/.
39
Abhishek Jejani, “Beardo: A Start-up to Take Care of Your Beard,” Business Standard, October 2, 2016,
https://www.business-standard.com/article/companies/a-start-up-to-take-care-of-your-beard-116100200716_1.html.
40
Devika Singh, “From the Man Company to Bombay Shaving Company; How the Men’s Grooming Category is Growing,”
Financial Express, December 2, 2019, https://www.financialexpress.com/brandwagon/from-the-man-company-to-bombay-
shaving-company-how-the-mens-grooming-category-is-growing/1781414/.

rP
41
Dipak Shenvi, “The 5th P behind the Success of Bombay Shaving Company,” The Strategy Story, June 25, 2021,
https://thestrategystory.com/2021/06/25/bombay-shaving-company-business-model/.
42
₹ = INR = Indian rupee; US$1 = ₹72.857 on June 1, 2021.
43
“Times Prime Partners with Men’s Grooming Brand The Man Company,” Times of India, accessed October 10, 2019,
https://timesofindia.indiatimes.com/business/india-business/times-prime-partners-with-mens-grooming-brand-the-man-
company/articleshow/71521141.cms.
44
Shanti S, “Road-Side Barbers to Beer Shampoos: India’s Men’s Grooming Startup Leverage the Changing Face of the
Metrosexual Man,” Inc42, November 20, 2019, https://inc42.com/features/road-side-barbers-to-beer-shampoos-how-mens-
grooming-startups-leverage-changing-choices-of-metrosexual-indian-men/.

yo
45
Mukherjee, “Emami Pumps $3 Mn.”
46
Sindhu Kashyaap, “This Startup by a 24-year-old Targets the $600M Male Grooming Market of India,” YourStory, September
5, 2019, https://yourstory.com/2016/05/letsshave/amp.
47
HT Correspondent, “LetsShave.com, Led by a 27-Year-Old.”
48
Joseph Rai, “Korean Razor Maker Dorco Picks up Stake in Grooming Products Startup LetsShave,” Vccircle, October 25,
2018, https://www.vccircle.com/korean-razor-maker-dorco-picks-up-stake-in-grooming-products-startup-letsshave/.
49
Anshul Dhamija, “Wipro Consumer Care Invests in LetsShave,” Fortune India, February 26, 2020,
https://www.fortuneindia.com/investing/wipro-consumer-care-invests-in-letsshave/104195.
50
Aditi Shrivastava, “Wipro Venture Arm Picks up Stake in LetsShave,” Economic Times, February 27, 2020,
https://economictimes.indiatimes.com/tech/ites/wipro-venture-arm-picks-up-stake-in-letsshave/articleshow/74327773.cms.
op
51
“LetsShave.com Is Now among India’s Most Promising Brands 2016,” Cision, September 22, 2016,
https://www.prnewswire.com/in/news-releases/letsshavecom-is-now-among-indias-most-promising-brands-2016-594410071.html.
52
LetsShave Evior, “Thank You Franchise India, Entrepreneur India, Zee Business & The Economic Times for Honouring Us
’Small Business Award 2019’ under the E-commerce Category,” Facebook, August 21, 2019,
https://www.facebook.com/482958855233320/posts/thank-you-franchise-india-entrepreneur-india-zee-business-the-
economic-times-for/1016577285204805/.
53
Tracxn, “Bombay Shaving Company.”
54
“LetsShave.com Is Now among India’s Most Promising Brands.”
tC

55
HT Correspondent, “LetsShave.com, Led by a 27-Year-Old.”
56
“LetsShave to Redefine Indian Shaving Market,” Financial Express, November 28, 2015,
https://www.financialexpress.com/industry/letsshave-to-redefine-indian-shaving-market/171436/.
57
Bhumika Khatri, “Korean Shaving Company Dorco Makes Its First India Bet with 10% Stake in LetsShave,” Inc42, October
25, 2018, https://inc42.com/buzz/korean-shaving-major-dorco-makes-its-first-india-bet-on-letsshave-for-10-stake/.
No
Do

This document is authorized for educator review use only by Deddy Herdiansjah, Universitas Bakrie Manajemen until Jul 2024. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860