There is a TON going on in the world of hair lately! Autumn has brought with it swift and interesting changes.
An update on The Honest Company. Co-founders Jessica Alba and Eric Lee are all over the business pages with news of Uniliever' s bid to acquire The Honest Company. According to the Wall Street Journal, Uniliever wishes to expand its market share to reach the eco-chemical conscious consumer and pinpointed Honest as the brand to take them there.
While I have been monitoring the Unilever bid these past few days, it is doubtful that they will actually get to culminate its courtship of Alba's Honest in acquisition. Why you ask? Alba and Lee turned down a ten figure deal! A ten figure deal!!!! Who turns that down? Well Alba and Lee do. I guess relinquishing the control as a unique (yep still very unique) woman at the helm of a hugely successful company with lots of growth potential still ahead isn't that appealing and for that Ms. Alba, Mr. Lee I applaud you!
Unilever recently acquired Dollar Shave Club for a similar ten figure offer. A billion is the magic number these days. For those of you not familiar with Dollar Shave Club, this company sells subscriptions to razors, blades and shaving products for men delivered right to the customer's door for a measly $3.00 INCLUDING shipping and handling (for its most basic package)!
Take that Gillette!
Unilever bought, lock stock and barrel, the Dollar Shave Club for about five times its value, basing its business decision on the quick growth of the Dollar Shave Club start up. Only time will tell whether that tenth figure is worth it or not.
Large companies swallowing up smaller ones seems to be the trend of our venture capital start up times - but is this good?
I'm so excited about the decision to "keep" The Honest Company completely honest. Partially because I'm excited to see a woman who understands the needs of herself and family continuing to develop a lucrative business that addresses universally shared needs, but also because we, (Joe and Jane consumer) need more competitors keeping giants like Unilever, Proctor & Gamble and the mega giant L'Oréal coming up with innovative products at reasonable prices. Once the control is wrested from relatively small companies and turned over to the giants we, the consumer, are left with products that meet the shareholders bottom line rather than primarily serving us.
What do you think of larger companies acquiring small green-centric companies? Do you think the infusion of cash makes these companies better? Worse? Please share your thoughts in the comments section below.
I'm still hoping someone has tried some of the products from the Honest Beauty Haircare and will share their experience. Again, do share feedback on the products interaction with your hair type below!