Birchbox

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

History[edit]

Birchbox was established in September 2010 [2] by two young women, 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] Birchbox is a rapidly growing company with approximately 45,000 members and 25 employees as of June 2011. It is expected to bring in $7 million in revenue between subscriptions and product sales for the year of 2011.[3] 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. The company is currently valued at $485 million.[5][6]

Membership[edit]

Birchbox, since its establishment, attracted 22,000 subscribers by April 2011. 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.[7]

After subscribing to the Birchbox service, the customer takes a survey called a "beauty profile" that serves to customize the future selections featured in Birchboxes to better suit their preferences.[8]

Birchbox Points[edit]

Birchbox points are points that are awarded for purchasing full-size versions of samples, participating in answering survey questions for each monthly box and/or the referral of others to the subscription based service. You earn 1 reward point for each dollar you spend. The exchange rate is currently 100 rewards points for a $10 credit that expires in a rolling 365 day period.

Social Commerce[edit]

In October 2014, Birchbox partnered with Soldsie to launch their first ever 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.[9]

References[edit]

  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. ^ a b c 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. ^ Perez, Sarah. April 21, 2014. Techcrunch "Birchbox Raises $60 Million"
  6. ^ Fiegerman, Seth (April 21, 2014). "Birchbox Raises $60 Million to Shake Up the Beauty Industry". Machable. Retrieved 22 April 2014. 
  7. ^ Cohen, Deborah. "Makeup startup thinks inside the box". Reuters.com. Retrieved 28 October 2011. 
  8. ^ Nape, Denise. "Birchbox lets you give new high-end cosmetics a trial run". Chicago Sun-Times. Retrieved 27 October 2011. 
  9. ^ Burza, Pawel. "Birchbox letting consumers shop through Instagram". Evigo. Retrieved 29 October 2014. 

External links[edit]