His creation completely changed the way people wash daily and his last name became a sharp verb. He did not come to this idea by chance, but precisely he was in search of an invention that will allow him to become a millionaire. Gillette It was born at the end of the 19th century, it went through multiple internal conflicts, it diversified and in 2005 it carried out one of the largest operations in corporate history.
The American King Camp Gillette was working as a traveling salesman for William Painter. His boss had amassed a good fortune creating the disposable bottle cap, and Gillette was one of those in charge of marketing his invention. After a talk between the two, Painter recommended that his employee look for another product which could become “disposable” and thus achieve success. For a while Gillette searched for what he could do, but could not think of anything. Until everything changed one spring morning in 1895.
Knives began to be used in England in the 17th century. However, for that time long beards were no longer a trend and it was more common to see clear chins and perfectly trimmed mustaches. There were two options: shave oneself at home or go to the barbershop. The first was cheaper, although cuts and injuries were commonplace; meanwhile, the second demanded an extraordinary expense since it was necessary to shave almost every day to exhibit a neat face.
The creation of the Gillette razor
Gillette discovered that it had to create a device that could carry a sharp blade and which could be produced cheaply so that it could be thrown away. The business would not be in the sale of the razor, but would come from the commercialization of the razors. These would not be the typical long knives, of which only the sharp point was used, instead it would be a longer and smaller edge that could be used in its entirety.
He contacted various experts to help him fabricate his idea, however they all told him it was impossible. Even his friends made fun of him. The project stopped until 1900 when Gillette met William Nickerson, who would take over the production. the entrepreneur got US$ 5 thousand and created the firm American Safety Razorwhich a year later would be renamed the Gillette Safety Razor.
However, the capital quickly ran out. At that moment, John Joyce entered the scene, who injected money into the firm, but, in exchange, Gillette gave him the position of majority shareholder. Finally in 1903 they started production and they started selling their razor for $5 and the kit of 20 blades for $1.
Despite the success of his invention, Gillette continued to work as a bottle cap salesman and in 1904 he was informed that he would be transferred to London. Gillette asked Joyce for a paid position with his company, but Joyce objected and the founder had to resign and move.
The return of the founder
For a few years the company continued to operate without its creator. Gillette returned upon learning that Joyce planned to sell an international license to the brand to raise capital. The entrepreneur came back and got control of the company. One of the first changes he implemented was to the distribution system. They dropped the mail-order model and razors were distributed through retail stores.
The acrimony between Gillette and Joyce continued. In 1910, the latter bought his entire share for US$900,000 and an annual payment in exchange for the patents he had in his name. King Camp Gillette remained with the company, although he did not handle the day-to-day running of the operation. Businessman he lost almost all his fortune with the stock market crash in 1929 and died in 1933.
For its part, Gillette (the company) launched an improved version of the original razor in 1920. The main reason behind this innovation was that the patent for that first invention would expire the following year. Between 1930 and 1950, the firm opted to distribute its razors in combo with any product, from chewing gum to canned meat. The goal was for everyone to have one and thus promote their main business: the sale of disposable knives.
Diversification and millionaire sale
The disposable razor would only arrive in the 70s, after the French company Bic anticipated its development. For the 1980s, Gillette began its diversification stage so as not to depend only on shaving. He acquired Oral-B for US$188 million, launched his line of lighters and introduced his leg of batteries, Duracell.
In 1989 Berkshire Hathaway, the holding company of billionaire Warren Buffett, bought $600 million worth of Gillette stock. The tycoon became the main shareholder of the company with 9 percent. Today the brand is part of the portfolio of P&G than in 2005 disbursed US$57 billion to add her to their ranks.
The Chronicler – RIPE
