Birchbox

Birchbox, Inc.
Industry Cosmetics
Founded September 2010
Founders Katia Beauchamp
Hayley Barna
Headquarters New York City
Website www.birchbox.com

Birchbox is a New York City-based online monthly subscription service that sends its subscribers a box of four to five selected samples of makeup, or other beauty related products. The products include skincare items, perfumes, organic based products, and various other cosmetics.[1]

History

Birchbox was established in September 2010[2] by Katia Beauchamp and Hayley Barna, both graduates of Harvard Business School.[3] In October 2010, Birchbox's initial funding began with $1.4 million in seed funding from investors including First Round and Accel Partners.[3]

In August 2011, Birchbox received $10.5 million in Series A Funding.[4]

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 Capital. In July 2014, Birchbox opened its first brick-and-mortar store in New York's Soho neighborhood.[5] As of 2014, the company was valued at $485 million.[6][7]

As of September 2015, Birchbox had over a million subscribers and 300 employees. [8] In 2015, co-founder Hayley Barna stepped down from the co-CEO role at the company and is joining the First Round Capital firm as a venture partner.[9] In January 2016, the company cut 15% of its staff. As of May 2018, it had raised a total of almost $90 million in funding.[10] In October 2018, a minority stake in Birchbox was purchased by Walgreens, with Birchbox to open in Walgreens stores initially 11.[11]

Membership

As of September 2015, Birchbox had over a million subscribers and more than 800 brand partners.[8] Birchbox's incentive is that the consumer will choose to purchase the full-sized product of whatever sample they've grown to like from the Birchbox website afterward.[12] As of 2016, about 50% of box subscribers went on to make full-size purchases. [13]

After subscribing, the customer takes a survey called a "beauty profile" that aims to customize their future selections to better suit their preferences.[14]

Birchbox points

Birchbox points are awarded for purchasing full-size versions of products (both online and in-store), through the referral of others, and purchasing subscriptions as gifts to others. Until July 2016, subscribers could earn points by reviewing each product in their monthly box. From that month on, subscribers will receive points for their first five product sample reviews only.[15]

Social commerce

In October 2014, Birchbox partnered with Soldsie to launch its first Instagram shop. The shop allows Instagram users interested in Birchbox products to purchase directly through Instagram by leaving a comment on a photo with the hashtag #birchboxcart.[16]

See also

References

  1. ↑ "About Us". BIRCHBOX. Retrieved 27 October 2011.
  2. ↑ Wortham, Jenna. "Birchbox Aims to Simplify the Business of Beauty". NYTimes.com. Retrieved 27 October 2011.
  3. 1 2 Rubin, Courtney. "Hayley Barna and Katia Beauchamp, Founders of Birchbox". INC.com. Retrieved 27 October 2011.
  4. ↑ Zelman, Josh. "(Founder Stories) Birchbox: On The Second Wave Of Ecommerce". TechCrunch.com. Retrieved 27 October 2011.
  5. ↑ Griffith, Erin. "With a wired store, Birchbox rethinks brick-and-mortar retail". Fortune. Retrieved 2016-01-14.
  6. ↑ Perez, Sarah. April 21, 2014. Techcrunch "Birchbox Raises $60 Million"
  7. ↑ Fiegerman, Seth (April 21, 2014). "Birchbox Raises $60 Million to Shake Up the Beauty Industry". Machable. Retrieved 22 April 2014.
  8. 1 2 https://www.forbes.com/sites/eshachhabra/2015/09/23/key-to-success-beauty-box-company-birchbox-says-its-not-just-about-the-box/
  9. ↑ Primack, Dan. "Birchbox Co-Founder Hayley Barna Joins First Round Capital". Fortune.com. Retrieved 8 March 2016.
  10. ↑ "Birchbox ownership changes hands after beauty business does recap – TechCrunch". techcrunch.com. Retrieved 2018-05-02.
  11. ↑ Sarah Perez (2018). "Walgreens takes a minority stake in Birchbox, which will now come to its stores". TechCrunch.
  12. ↑ Cohen, Deborah. "Makeup startup thinks inside the box". Reuters.com. Retrieved 28 October 2011.
  13. ↑ "Birchbox Finds Cute Boxes Filled With Makeup Aren't Enough". Bloomberg.com. 2016-06-03. Retrieved 2017-01-24.
  14. ↑ Nape, Denise. "Birchbox lets you give new high-end cosmetics a trial run". Chicago Sun-Times. Retrieved 27 October 2011.
  15. ↑ "Changes to Birchbox Points Starting July 2016". My Subscription Addiction. Retrieved 30 September 2016.
  16. ↑ Burza, Pawel. "Birchbox letting consumers shop through Instagram". Evigo. Retrieved 29 October 2014.
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