Audrey Botti Lacey Yuxin

Claiming to be the best way to discover beauty. What it is? Birchbox delivers high-end beauty, grooming, and lifestyle samples once a month, customized just for you. “The Box” = the element of surprise Video Birchbox

How it started: Co-founders Hayley Barna and Katia Beauchamp met at Harvard Business School. With inspiration from Hayley’s beauty editor best friend Mollie Chen, they created Birchbox to help consumers cut through the clutter of the retail world to find products that really work for them. Founders Co-founder Katia Beauchamp Co-founder Hayley Barna Co-founder Mollie Chen

How it works? 1. Subscribe 2. Fill out profile based on skin type, hair ect. 3. Then wait to receive your personalized birchbox! Changes based on seasons (themed boxes i.e. for April it was “Earth Day and the contents of the entire box were eco-friendly, down to the packaging which was carbon-neutral and made from recycled materials) Changes based on where you live (weather/temp differences) Changes for male and female (brown box/pinkbox)

It’s for men too! I’m so excited to receive my birchbox this month! Maybe it will have some good beard grooming products… hmmm

What’s in the box? Women’s Box: 7" x 5" x 2" Makeup Skincare Fragrances Non beauty extras i.e. chocolate Men’s box: 8" x 5.5" x 2.5 Top tier grooming products Lifestyle accessories Hip socks Tech gadgets Birchbox sources samples from well-known brands and emerging gems. WebsiteWebsite

Profile questions:

Expanding to other countries beyond US, UK, France, and Spain Kids version boxes Sending boxes to people who aren’t subscribers Offering more brands (well known brands) Pop up stores in malls Public profiles for Birchbox users to share opinions/reviews on what was in their box Opening a brick-and-mortar store… Opportunities for growth

Opening their first brick-and-mortar store this May in New York. The Birchbox store will offer 2,000 products for sale, representing brands. BYOB or “Build Your Own Birchbox” will let shoppers fill those pink boxes with samples of their choice for 15$ Creating a similar experience to Apple stores Technology at the heart of the experience with touch screens throughout the store Separate floor for classes on topics like skin care/makeup tricks, and services like hair styling Cyber to Cement

Examples: –Ebay.com –Amazon.com –Overstock.com –Drugstore.com Can you think of any other examples that have successfully moved from the online retail space to brick-and-mortar stores? What are some of the pros and cons of making this shift? Can a retailer company exist exclusively online?

Facebook – communicating with customers Twitter – hashtaging brands Instagram – sweepstakes, free product give aways, promoting certain brands (link under profile) Strength: Social Media video

SephoraBirchbox Online and physical stores already in place Exclusively online Less likely to talk about your purchases or share them with others Creates a conversation or sharing of products More popular brands Example: Bobby Brown, Clinique, Clarins, Fresh Newer brands that are more underground You choose the products to buySurprise products and you choose if you want to buy again, or not Competition: Sephora vs. Birchbox

Will they continue to thrive? What will be key to success as they enter the brick-and-mortar retail space? Do they have any other hidden competition? How will they continue to capture the market after customers are pas the “discovery” phase, and have now found the brands that they love and what to remain loyal too?

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