Birchbox Expands Subscription Service Offering to Focus on Uber-Personalization

After a rough year, Birchbox is looking for ways to enhance its subscription offerings through a pricier and more customized offering to subscribers. Up just $4 from its original $10 subscription, Birchbox’s new $14 box to current subscribers will allow for more VIP-level perks.

In 2016, the company deliberately slowed down growth in order to focus on its core business and improve operational efficiency, working toward profitability and long-term sustainability. Birchbox received a $15 million cash infusion from existing investors in August 2016.

New competition in the form of Michelle Phan’s Ipsy, GlossyBox and BeautyArmy entered the market and took sales away from Birchbox. With a reported 35 percent of revenue coming from subscribers trying samples and following through with purchases of the full-sized items, it’s no wonder the brand is reworking its image with a new offering.

To show its strength and paint a more vivid picture of Birchbox’s thinking behind this new, pricier subscription option, Birchbox issued the following statement to TechCrunch:

“We are currently testing additional ways to allow subscribers to get the most out of their subscription. These new features have been in development for awhile and stem directly from customer research – we’re thinking strategically about what our subscribers want more of and how to execute on that in a way that makes sense for our business.”

While it can be fun to try out new products from time to time, the monthly subscription boxes may be too much for some women. With busy lifestyles, it can be hard to try out every product in every box each month. The low conversion rate from sample to full size product purchasing will likely push Birchbox to continue to innovate.


Latest Insights: 

The Which Apps Do They Want Study analyzes survey data collected from 1,045 American consumers to learn how they use merchant apps to enhance in-store shopping experiences, and their interest in downloading more in the future. Our research covered consumers’ usage of in-app features like loyalty and rewards offerings and in-store navigation, helping to assess how merchants can design apps to distinguish themselves from competitors.

Click to comment


To Top