The original influencer brand and OG subscription service Ipsy, founded in 2012 by influencer Michelle Phan, doubles down on their strategy and brand equity. In November 2020, Ipsy acquired rival BoxyCharm, merging the top two beauty subscription services in a $500 million deal with the original intent of keeping the businesses operating independently under the same parent company Beauty for All Industries, which is also the incubator behind Addison Rae’s Item Beauty, and Becky G’s Trésluce Beauty.
After two years of operation, the two brands will officially come together under the Ipsy umbrella to create the ultimate beauty membership business. The reimagined combined portfolio will offer the best of both worlds to their 20MM+ community by coupling BoxyCharm's unrivaled curation of brands and merchandise with Ipsy's AI personalization, customization, and unparalleled operations.
“We realized that, by running our brands independently, we were actually competing with each other and weren’t servicing our members to the best of our ability,” said Jenna Habayeb, Chief Marketing Officer at Ipsy. "Our members love different aspects of what Ipsy and BoxyCharm offer and we are thrilled to empower them with the benefits of both brands."
In the unpredictable post-pandemic environment, Ipsy saw a strategic opportunity to reinvent its business model while better serving members by integrating the portfolio, leaning into the combined power of the passionate creators who brought in almost $200MM in EMV in 2022.
The merger will reduce the number of beauty subscription options offering four subscriptions while unlocking access to more personalization and customization, buzzier brands, and better commerce events. There will be a sample-size beauty subscription Glam Bag, a full-size beauty subscription BoxyCharm by Ipsy, a quarterly celeb-curated collection called Icon Box, and clean, sustainable personal care subscription Refreshments.
Habayeb continued, "We are excited for the future of Ipsy and to provide a unique and personalized beauty experience for our members that is unlike anything else out there."
Last February, Beauty for All Industries landed a $96 million growth investment led by TPG Growth, the middle-market and growth equity platform of alternative asset firm TPG. The fresh capital was earmarked to develop its technology platform, international expansion, and increase the retail footprint for incubated brands.
The digitally native, vertically integrated innovation platform is building both the technology infrastructure and community to attract brands, consumers, and talent to its platform. Rooted in machine learning, its proprietary technology utilizes over 200 million product reviews and data from millions of beauty enthusiasts to create personalization algorithms that inform subscribers' unique monthly bag and box combinations. Data analytics from consumer feedback and preferences inform new product launches and market opportunities for in-house and third-party brands.
The consolidation of BoxyCharm and Ipsy under one brand should reduce operating costs by reducing the number of subscription boxes offered and focus marketing efforts on building one subscription superpower under the Ipsy brand, which is currently the second-largest US brand on TikTok.
