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From ecommerce to vcommerce: fledgling New York-based razor vendor Harrys leads the way to a new type of enterprise

Let’s start with a con­fes­sion: Harry’s, not long past its first birth­day, is more than an ecom­merce razor ven­dor. It doesn’t take a vet­er­an ecom­merce ana­lyst to fig­ure out that if a fledg­ling firm is in a posi­tion to make a $100 mil­lion acqui­si­tion before its first birth­day, it’s got a bold and con­vinc­ing vision of its future. Big spend, big plans  Co-found­ed by Andy Matz-May­­field and Jeff Raider, the com­pa­ny raised $122.5 mil­lion last year from Thrive Cap­i­tal, Tiger Glob­al, SV Angel and High­land Cap­i­tal (plus a few oth­ers). Then it spent $100 mil­lion of it on acquir­ing the 93-year-old razor man­u­fac­tur­er Fein­tech­nik. Brave? Most ecom­merce man­agers and ana­lysts would cer­tain­ly think so. But there’s a seri­ous plan behind the move. This is a David get­ting ready to take on Goliaths like Gillette and Schick, who between them con­trol a thun­der­ing 85 per­cent of the shav­ing mar­ket. And it’s doing so by tak­ing charge of the man­u­fac­ture of the prod­ucts it wants to sell online. That means it con­trols mak­ing the very prod­ucts it designs, dis­trib­utes and sells direct­ly to cus­tomers – in oth­er words, it’s a ful­ly ver­ti­cal­ly inte­grat­ed com­pa­ny, one amongst a very small and exclu­sive group…

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