 | |
| 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
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
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
References
- ^ "About Us". BIRCHBOX. Retrieved 27 October 2011.
- ^ "Birchbox Assets Purchased from FemTec Health by Retention Brands". PR Newswire. Retrieved 2023-08-07.
- ^ Wortham, Jenna (20 April 2011). "Birchbox Aims to Simplify the Business of Beauty". The New York Times. Retrieved 27 October 2011.
- ^ a b Rubin, Courtney (27 June 2011). "Hayley Barna and Katia Beauchamp, Founders of Birchbox". INC.com. Retrieved 27 October 2011.
- ^ Zelman, Josh. "(Founder Stories) Birchbox: On The Second Wave Of Ecommerce". TechCrunch.com. Retrieved 27 October 2011.
- ^ Griffith, Erin. "With a wired store, Birchbox rethinks brick-and-mortar retail". Fortune. Retrieved 2016-01-14.
- ^ Perez, Sarah. April 21, 2014. Techcrunch " Birchbox Raises $60 Million"
- ^ Fiegerman, Seth (April 21, 2014). "Birchbox Raises $60 Million to Shake Up the Beauty Industry". Machable. Retrieved 22 April 2014.
- ^ Burza, Pawel. "Birchbox letting consumers shop through Instagram". Evigo. Retrieved 29 October 2014.
- ^ Primack, Dan. "Birchbox Co-Founder Hayley Barna Joins First Round Capital". Fortune.com. Retrieved 8 March 2016.
- ^ "Birchbox ownership changes hands after beauty business does recap – TechCrunch". techcrunch.com. Retrieved 2018-05-02.
- ^ Sarah Perez (2018). "Walgreens takes a minority stake in Birchbox, which will now come to its stores". TechCrunch.
- ^ Smith, Craig (28 October 2019). "Birchbox Statistics". DMR.
- ^ "Key to Success: Beauty Box Company Birchbox Says It's Not Just About the Box". Forbes.
- ^ "Birchbox Has A New Owner. Its Next Chapter: Healthcare". Forbes.
- ^ Cohen, Deborah (17 November 2010). "Makeup startup thinks inside the box". Reuters.com. Archived from the original on 13 October 2011. Retrieved 28 October 2011.
- ^ "Birchbox Finds Cute Boxes Filled With Makeup Aren't Enough". Bloomberg.com. 2016-06-03. Retrieved 2017-01-24.
- ^ Nape, Denise. "Birchbox lets you give new high-end cosmetics a trial run". Chicago Sun-Times. Archived from the original on 11 November 2011. Retrieved 27 October 2011.