Birchbox
| File:Birchbox logo.svg | |
| Industry | Cosmetics |
|---|---|
| Founded | 2010 |
| Founders | Katia Beauchamp Hayley Barna |
| Headquarters | New York City, New York, U.S. |
| Owner |
|
| Website | birchbox |
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]
Since 2023, it has been owned by Retention Brands.[2]
History
[edit | edit source]Birchbox was established in September 2010[3] by Katia Beauchamp and Hayley Barna, both graduates of Harvard Business School.[4] In October 2010, Birchbox's initial funding began with $1.4 million in seed funding from investors including First Round and Accel Partners.[4]
In August 2011, Birchbox received $10.5 million in Series A Funding.[5] In April 2014, it 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, the company opened its first brick-and-mortar store in New York's Soho neighborhood.[6] As of 2014, Birchbox was valued at $485 million.[7][8] In October, it 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.[9]
In 2015, Barna stepped down from the co-CEO role at the company and joined the First Round Capital firm as a venture partner.[10] In January 2016, the company cut 15% of its staff.
Five months after raising $90 million, it had a minority stake acquired in October 2018 by Walgreens, whose stores began offering its service.[11][12] However, Birchbox cut 70% of its staff of 230 employees in January 2020. [13][14]
After being purchased by start-up FemTec for $45 million in October 2021,[15] the online subscription service was acquired in 2023 by Retention Brands.
Business
[edit | edit source]As of Jan 2021, Birchbox has 300 thousand subscribers and 500 thousand active customers. 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.[16] As of 2021, about 5% of box subscribers went on to make full-size purchases.[17]
After subscribing, the customer takes a "beauty profile" survey that aims to customize their future selections to suit their preferences better.[18]
See also
[edit | edit source]References
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- ^ Perez, Sarah. April 21, 2014. Techcrunch "Birchbox Raises $60 Million"
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