Subscription in a box: How it's changing the way woman shop

Birchbox is a startup launched in year 2010 by two Harvard business women. The idea behind Birchbox (which is also known as subscription in a box) is to send members a box of the latest samples of beauty items like cosmetics, toiletries, perfume, nail polishes and other beauty products for a monthly subscription fee of $10.

The latest figures released by the company revealed that they now have over 100,000 subscribers and that number alone would generate about $12 million in annual revenue. Its phenomenal success over the past 3 years has led the company to launch a men’s line up recently.

And the best thing ? Its success is largely attributed to its marketing strategies in social media. 

Short videos (~ 2 mins) to sustain viewer's attention span

So what exactly made Birchbox such a success, that this idea is quickly duplicated (with not as much success) all over the world ?

1)      Selling surprises

For a meagre $10/month, cosmetics or skincare junkies (like me), would be thrilled to receive a specially curated box of products. I guess Birchbox tapped into the right psychological aspect of its customers by selling surprises- with customers having no idea what’s in the box for them. It’s this little element of surprise and mystery that appeals to most women. And even if the samples isn't really your cup of tea, the opportunity cost is only $10/month (equivalent to a casual lunch).

2)      Specially curated boxes

The two Harvard business trained ladies have it figured out by having subscribers to fill out questionnaire when they sign up, detailing out preferences and skin care types.  As a consequence, subscribers would get a unique package that feels as though they are hand-picked according to their preference (or at least, as close as possible).

3)      Birchbox has a heavy presence in the social media landscape

Its presence in the social media landscape can be explained by its fans in Facebook and Twitter, respectively at 180K fans and 50K followers. It also posts weekly short videos on Youtube on beauty tips and tricks demonstrating how to use its products. It also has a presence in Pinterest.  From the perspective of a lady who is personally a beauty junkie, its videos are refreshing, light-hearted and they are filmed in such a casual manner that makes women think they can duplicate such looks at the comfort of their homes.

4)      Engaging content

Considering that the products sold are targeted towards woman, its content across Twitter, Youtube and Facebook are very engaging, primarily focused on beauty and personal care. Best of all, the company already has it figured out that its subscribers must be interested in skincare and personal grooming products.

5)      Full-sized purchases on e-commerce site

Ofcourse, the samples would also allow the option of purchasing full-sized items at its e-commerce website.  This provides a great avenue for cosmetic companies that give samples to reach an already highly engaged audience, with easy access to their products.

                             

E-commerce site for full-sized purchases

My two cents on why Birchbox is such a success:

I personally reckon this idea is greatly executed, and understands women’s needs and wants (women are easy, we want to feel pretty and loved all the time haha!). Its phenomenal success also means that companies are more willing to sponsor samples to gain a wider exposure to potential customers. Back in my home country (Malaysia), concepts like these don’t work very successfully simply because its monthly subscription fee is RM50 (that’s about 5X more compared to what Birchbox is charging) and they don’t have as many established brands that Birchbox carries.

A summary of the Birchbox (for those too lazy too read) can be found below:

What are your thoughts on this concept ? Do you think this will be the future of how people shop for personal products ?