A Study On Birchbox's ' An Online $ 10 Monthly Subscription Service

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Birchbox was started by co-founders Katia Beauchamp and Hayley Barna on September 2010125. It’s an online $10 monthly subscription service that sends its subscribers a box of five to six beauty samples2. These samples range from makeup, shampoo/conditioner, perfumes, nail polish, and etc12. These products are selected based on a personalized “beauty profile” and mailed on the 15th of every month2. Initially, the company was sampling beauty products for women, however, they have established a successful market for men as well. The idea developed while Beauchamp and Barna were at Harvard Business School together1. They were intrigued with companies like Rent the Runway and Gilt Groupe1. However, they realized there was no current services…show more content…
The current annual revenue estimates between $25 and $50 million5. In April 2014, Birchbox raised $60 million in Series B funding, led by Viking Global Investors, and saw participation from First Round Capital, Accel Partners, Aspect Partners, and Consigliere Brand Capital4. The company is currently valued at $485 million4. Birchbox has established 800 brand partners and clients7. Additionally, unlike other subscriptions, they offer full-sized purchases directly from their website to be purchased after sampling2. They have a personalized “beauty profile” that serves to customize the future selections featured in Birchboxes to better suit personal preferences2. There are tutorials, how-to’s, and information on the products on the company’s website so that customers can learn, understand and use products effectively. The service also offers subscribers Birchbox points that are earned while reviewing products, purchasing full-sized products, referral of Birchbox to others and/or sharing your monthly Birchbox on social media sites such as Facebook, Twitter or Instagram2. The current exchange rate is 100 Birchbox points is equivalent to $10 credit in online-site that expire within a 365 day period2. Lastly, in October of 2014, Birchbox partnered with Soldie to launch their Instragram shop that allows Instagram users to purchase Birchbox products directly through Instagram by leaving a comment on a photo with a hashtag #birchboxcart7. Why of interest to
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