Chapter 5 – A Thriving Manufacturing Scene
The 19th century was undeniably a paradise for entrepreneurs. As industrialization advanced, investing in industry yielded impressive returns. Although the risks were high, for Ernst they were essentially negligible. After a year-long struggle, the "Gillette" razor had at least become well known. Those who had purchased it remained loyal, and there were already repeat customers. "Gillette" was on the road to profitability, and Ernst had no intention of stopping there. In his previous life, Gillette had risen to prominence during the world wars, when the U.S. military spread it worldwide. Now Ernst found himself in a fortunate era as well. With Bismarck serving as the "Iron Chancellor," the Prussian military was receiving great attention. After taking office, Bismarck implemented the famous "Blood and Iron" policy, which meant expanding industrial development to serve the army and strengthening alliances among the various German states' armed forces.
According to the history Ernst knew, next year would mark the beginning of Prussia's wars to unify Germany, starting with the joint declaration of war by Prussia and Austria against Denmark to reclaim the two northern duchies, Schleswig and Holstein. In the midst of the Prussian military buildup, Ernst personally visited the Prussian royal palace to promote the "Gillette" razor to Wilhelm I. Ernst emphasized that, in the event of war, time would be crucial. Traditional straight razors weren't just unsafe—they were also difficult to use and required time-consuming upkeep. Gillette's model only needed a quick blade change, saving precious minutes. To ease Wilhelm I's concerns, Ernst offered to provide twenty thousand "Gillette" razors at a loss to support the kingdom's troops. Profit didn't matter; what mattered was letting Prussian soldiers experience Gillette's convenience. People naturally tend toward laziness—preferring to sit rather than stand, lie down rather than sit—something Ernst had learned well in his college days back in his previous life.
At that thought, Ernst suddenly froze. Right, "cigarettes." His head felt like it might explode with the possibilities. But since he was still at the palace, he composed himself. After confirming the plan for the army to try out Gillette razors, his mind was no longer focused solely on orders. Once he left the Prussian royal palace and was back in his carriage, he began to dream up new ideas. Why hadn't he thought of cigarettes earlier, which were basically pure profit? He had to push himself to recall more of his previous life's ideas. If he could manufacture certain items ahead of their time, he could make a fortune.
Tobacco products did exist in this era, but mostly as handmade goods, since the machinery for large-scale cigarette production hadn't yet been developed or adopted. Ernst believed that with the right technical experts, he could crack mass production of cigarettes, becoming the first in line to benefit. Cigarettes sold remarkably well because they provided psychological satisfaction. Although there would be competitors, those relying on relatively expensive, inefficient handmade production couldn't match the pace of mechanical mass production. Ernst decided to find the right collaborators as soon as possible and compile a list of everyday items with minimal technical requirements from his previous life, getting them to market early. He also planned to found a new company, because "Gillette" was just a single factory producing razors. Once he ventured into multiple product lines, he would need more than one factory. He would have to hire professional managers to oversee everything.
With the Prussian army now equipped with razors from Ernst's factory, events played out exactly as he expected. The rank-and-file loved the time-saving, easy-to-use design. Blades were consumable items that dulled over time, but the low cost and convenience outweighed that drawback, and orders for blades began pouring in. As the Prussian army expanded its use of new razors, Ernst didn't sit idle. Aside from Prussia, the German states offered other potential markets. He ramped up efforts to promote his razor to their militaries. If they hesitated, he could always point out that Prussian troops were already using Gillette razors with great success. Anyone who doubted him could visit a Prussian camp firsthand. That became his classic case study, persuading many smaller states to adopt the razors.
Good news often snowballs. The razors soon caught the attention of factory owners who produced precision instruments, for whom facial hair was a nuisance. Such factories needed their workers to keep clean-shaven, so they had them use Gillette razors. Thanks to that, the new razor business entered a phase of rapid growth, and Ernst set his sights on even bigger plans. He established the Hexingen Development Company to send sales teams abroad—targeting, for instance, the Austrian Empire and Russia as key markets. In more conservative Russia, Ernst instructed his sales teams to emphasize the razor's modern design as an outcome of industrial progress, one that symbolized both hygiene and safety. At this point, Russia was still in the Tsarist era, and it was well known that Russians had always looked westward with admiration, especially in that period.
As for the Austrian Empire, Ernst's main selling point was the practical benefits the Prussian army had experienced since adopting the razors. He also branched out globally, aiming at all of Europe and seeking agents in North America. In his previous life, North America was Gillette's main stage, but Ernst couldn't personally travel there to oversee factory construction. Patents themselves were a concern—America was a major hotbed of knockoffs, and Ernst wasn't going to rely on their sense of honor. Instead, he set up a North American office in partnership with a local capitalist group. Holding a European aristocratic background gave the Hexingen Development Company a certain appeal; at least no one in America tried to cause trouble for such a small firm backed by Old-World nobility. As "Gillette" razors still weren't widespread there, the big players didn't jump in yet. Through talks with a U.S. investment group, Ernst managed to secure orders for "Gillette" razors in the American military—though that lay in the future. He licensed out the patent, while the Americans themselves handled factory construction and funding, allowing Ernst to collect ten percent of the profits in U.S. dollars every year. He considered that a very good deal. By the time "Gillette" really took off, Ernst hoped he wouldn't be focusing on just a single product anymore. He envisioned the Hexingen Development Company diversifying.
Ernst had just received some exciting news: the production line for his new cigarette venture was ready. Soon, cigarettes much like those from his previous life (albeit without filters for now) would appear in convenience stores and factories all over Germany—along with solid demand from the military. People in this era didn't pay attention to the dangers of smoking, so Ernst didn't even have to print health warnings on the packaging. Besides, due to industrialization, the big European cities were full of smokestacks, and the pollution of heavy smoke and dust was no less harmful than cigarettes.
While selling "Gillette" razors, Ernst had already turned his attention to producing various consumer goods. One idea was the flush toilet, still not widely adopted. Britain had developed a mature version, so Ernst's role would be to promote it and set up a contract factory—possibly even marketing it under a different brand name. If he had cigarettes, then lighters would be the next logical product. He planned to produce kerosene lighters, potentially making them a signature product of the Hexingen company. He had many more ideas he wanted to pursue, but lacked the resources for them all right now. Even funding these expansions posed risks. Having moved past the startup phase, he simply needed to expand steadily and wait for war to break out—better times still lay ahead.
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