Chapter 5

Chapter 5: The Thriving Manufacturing Industry

The 19th century undeniably proved to be a golden era for entrepreneurs. Amid the ever-accelerating industrialization, investments in industry yielded substantial returns.

Although the risks were significant, they posed little concern for Ernst after a year of persistent efforts.

"Gillette" razors had become well-known, firmly grasping the loyalty of existing customers, with many becoming repeat buyers.

However, Ernst had no intention of halting here. He knew from his previous life that "Gillette" had achieved significant growth, particularly during the world wars, when the U.S. military introduced it worldwide.

Ernst's timing aligned well with the unfolding events. As the Iron Chancellor, Bismarck's appointment ushered in the "iron and blood policy," emphasizing industrial development to serve the military and foster German states' military cooperation.

Based on his historical knowledge, the next year would mark Prussia's steps toward unifying Germany, beginning with a joint war declaration with Austria against Denmark to reclaim the Schleswig-Holstein duchies.

Anticipating Prussia's increased focus on military readiness, Ernst personally approached William I at the Prussian royal palace to pitch the "Gillette" razor. He highlighted its time-saving advantages, emphasizing that traditional razors were not only unsafe but also cumbersome to operate, with blades requiring separate maintenance. In contrast, "Gillette" only needed blade replacements, saving valuable time.

To allay William I's concerns, Ernst offered to supply 20,000 sets of "Gillette" razors at a loss to support the kingdom's army. The cost mattered less than introducing Prussian soldiers to the convenience of "Gillette."

People tended to be inert, choosing comfort over effort. Ernst had learned this during his college years. Regarding cigarettes, he often couldn't be bothered to descend stairs.

However, his thoughts took an abrupt turn as he realized the potential of the cigarette business, a nearly costless endeavor. Ernst had to organize his thoughts and jot down ideas from his previous life to secure a prosperous future.

Cigarettes existed in this era, but they were handmade, with no widespread production using machines.

Ernst recognized an opportunity to pioneer mass production of cigarettes by enlisting experts to overcome technological barriers. He could become the first mover in an industry that satisfied people's spiritual cravings and was incredibly marketable.

With the razor industry gaining momentum, Ernst established the Hechingen Development Company, dispatching sales teams to other countries, with a particular focus on the Austrian Empire and Russia.

In Russia, Ernst's team emphasized the product's representation of hygiene, safety, and industrialization, elements that would appeal to a populace yearning for Western innovations during Tsarist Russia.

In contrast, the Austrian Empire's pitch emphasized the advantages of Prussian troops equipped with "Gillette" razors.

Ernst expanded his market reach across Europe and sought agents in North America, a region that played a pivotal role in "Gillette's" success in his previous life. However, he wouldn't personally establish factories there due to patent concerns and the country's history of copying inventions.

Instead, he'd collaborate with American capitalists, setting up offices and authorizing patents. He successfully negotiated a patent deal to supply "Gillette" razors to the U.S. military, securing an annual 10% royalty on U.S. sales.

As the razor business flourished, Ernst's large-scale cigarette production line was completed, ensuring widespread availability of cigarettes in Germany, including military use.

In this era, health risks associated with smoking went unnoticed, and Ernst didn't feel the need to include health warnings on the packaging.

Conversely, industrialization, marked by blackened city skies and airborne dust, arguably posed more significant health hazards than smoking.

While continuing to sell "Gillette" razors, Ernst diversified his production, including flush toilets, lighters, and various other small commodities. His expanding company, the Hechingen Development Company, now focused on steady growth.

As war loomed on the horizon, Ernst understood that even brighter days were ahead.

(End of Chapter 5)