Birchbox in just 3.5 years has exploded. With over 800,000 subscribers and 96 million dollars in annual sales they are at the top of their game. Birchbox is an e-commerce business which you can subscribe to for an allotted amount of time and receive a monthly box various beauty samples. These beauty samples can be personalized to your taste and you can buy full sized ones on the site if you like the sample you received.
These boxes are $10 each and include anything from skincare, hair care, nail polish, and really any type of make up.The goal of Birchbox is to get you hooked on at least one of the samples and like it enough to go on their site and buy the full sized version. Over 30% of the businesses revenue is made up of full-sized purchases. Birchbox has recently launched a box for men that includes the same concept for men’s care.
This sales concept has worked well for Birchbox. The company has taken the box product idea and run with it. They are growing more than ever! By providing small samples for their customer’s to try it offers people an opportunity to try high end products they originally would never buy. Their unique value proposition is something their brick and mortar competitors can’t compete with.
http://fortune.com/2014/04/21/exclusive-birchbox-banks-60-million/
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When I first heard about this company a few years ago, I was skeptical that its model would be successful. Fast forward a couple years, and not only is this company wildly successful, but I subscribe to Graze, a company which mails snacks to its subscribers as frequently as they want. This model is attractive for both the customer, who gets exposure to a variety of products, and the seller, who is able to push product recommendations towards customers. How often do customers want to be surprised by the products they receive in the mail? According to this company, quite a few!