I recently wrote about Birchbox as an awesome KIO program, as I am sure you all read, but now they are facing some serious competition.
POPSUGAR and Pinterest competitor The Fancy have released their own beauty box services. POPSUGAR is called a monthly must have- it is $35 for full-sized products and premium items work $100. This differs from the $10 Birchbox that only offers sample sizes.
The Fancy is becoming well known as the Pinterest for shopping. For $30/month subscribers are promised $60 worth of goods in a category of their choice (men, women, gadget, kid, home, media, etc). The bonus of The Fancy is that they let you customize the box and are broadening out of the beauty space.
Why are these boxes popping up everywhere? It works. Bottom line: its not just a bunch of crap in a box, its discovery commerce & marketing that women actually pay for. It makes money thought selling of actual goods, and is awesome marketing because it has a seamless transition from trying to buying. Plus, its analytics show its seriously targeted. Really, Birchbox has figured out a way to get women to pay home to be marketed to. To prove its loyalty to its 400 partner brands the Brichbox company actually buys inventory wholesale and operates it own shipping department.
These subscription services are not just a fad, but something consumers and brands alike should pay attention to.
No comments:
Post a Comment