Beauty boxes have gone from innovation to complete market saturation. Everyone from retailers to magazines have thrown their hats into the subscription-based beauty box business. Retail boxes are part of much larger overarching marketing strategies, and magazine boxes are an effort to create new revenue streams for editorial properties, while innovators of the subscription commerce revolution like Birchbox are struggling.
While Birchbox has scaled back beauty boxes, innovator Ipsy hit 2.5 million subscribers this month, blowing past the competition. Ipsy founders—Michelle Phan, Jennifer Goldfarb, and Marcelo Camberos—told Fast Company they didn’t conceive of their company as part of the subscription commerce revolution when they launched it in late 2011. “The Glam Bags were never the point,” Camberos said. “Our plan was to create a company that would be relevant in the current beauty market. These days, beauty brands don’t decide what products are cool: Instead, it’s beauty bloggers and other creators that are controlling the conversation.”
Their recipe for success:
- Correctly identifying the business opportunity
- Constant improvement of the product
- Nurturing talent
Read the full article in Fast Company.