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Monthly Subscription Box Trend Rivals Christmas Day

Monthly Subscription Box Trend Rivals Christmas Day

By Tuesday, 11 June 2019 12:41 PM Current | Bio | Archive

With 80% of customers demanding opportunities to subscribe, share and lease as an alternative to buying a product outright, brands are hard pressed to ignore the rise in subscription-based services. For a fee, everything from makeup and pet toys to jewelry and marijuana accessories can arrive on a customer’s door step quarterly or monthly.

“It's about letting consumers shop where they want and how they want,” said Michael Weinstein, president, digital, Bluewater Media, a brand focused creative agency. “Companies that try to limit and control too closely how customers can purchase products often lose to those who see the bigger picture.”

BoxyCharm, for example, offers subscribers 4 to 5 full-size beauty products with a minimum value of $100. Box members only pay $21 every month. Rising in popularity are Asian-themed cosmetic subscription boxes such as Soko Glam, NoMakeNoLife, BomiBox, Facetory and Mishi Box.

“The overall success for subscription box programs or monthly replenishment campaigns is directly related to both the quality and value of the services or products provided,” Weinstein told Newsmax Finance.

That may be why once consumers are signed on to receive the BoxyCharm subscription box, the company offers an upgrade to BoxyLuxe, a larger box valued at $250 which contains 9 to 10 full sized beauty items priced at an additional $28.99 per month plus tax.

Sephora, another market leader, is earning $10 a month per subscriber for a box called Sephora Play, which is full of mere trial size cosmetics and skin care samples like lip liners, perfume, moisturizer, cleanser and mascara.

“Samples are a great tool for acquiring new customers while building brand awareness,” Weinstein said. “It's up to the brand to then later offer line extensions and new products to maximize the overall opportunities.”

According to Statista, some 38% of women earning $100,000 or more who were subscribed to a beauty box held a subscription with Play Box by Sephora and according to Sephora data, the city of Chicago is home to the highest number of enthusiasts who subscribe.

Smoke Cartel’s newly built subscription service Club Lifted curates its boxes with cannabis culture accessories based on a customer questionnaire designed to determine their preferences, whether its flower over concentrates or water pipes rather than vaporizers.

“There are a lot of advantages to a subscription box service beyond new revenue,” said Sean Geng, co-founder and president of Smoke Cartel, Inc. “Monthly boxes let us show off our latest releases and create new fans who want to show it off as well.”

According to a study by McKinsey & Company called Thinking Inside the Subscription Box, subscribers are more likely to be 25 to 44 years old and to have incomes from $50,000 to $100,000.

“We have a pet accessory line, HeadyPet, and a female-driven retail channel at MidnightToke.com but we haven't integrated our subscription box service into these collections yet,” Geng told Newsmax Finance. “Our CBD online sales channel, MindCBD.com, doesn't offer a subscription box service yet either. Club Lifted is our testing ground before we decide whether we want to implement the service tailored to new demographics.”

For now, there are three types of memberships to choose from:

  • The Easy-Goer is $25 for 5 to 7 new products each month
  • The Regular is $35 for 7 to 9 new products each month
  • The Grande is $50 for more than 10 new products each month

“Honing in on the subscription box feature has given us another competitive service to offer packaged to wholesale customers and to fellow e-commerce entrepreneurs through our growing number of Shopify add-ons,” said Geng.

The McKinsey & Company study further found that subscription boxes generated $2.6 billion. While women account for 60% of subscribers, 42% of male subscribers compared to 28% of women are more likely to have three or more active subscriptions. Dollar Shave, Harry’s, Loot Crate, Home Chef and BarkBox were among the top ten sites with the highest number of male subscribers.

In addition to BarkBox, there’s a plethora of goodie boxes to choose from for pet owners including MeowBox, KitNipBox, Chewy, VetPet Box, PupBox, Cat Lady Box and Bullymake. Among women, the top ten sites with the highest number of women subscribers included Birchbox, Ipsy, JustFab and StitchFix.

"We built Birchbox to make it easier and more fun for busy women to discover beauty,” said Katia Beauchamp, Birchbox cofounder and CEO. “That mission drives us every day."

One of Birchbox’s past offerings was Power Beauty, the limited-edition Birchbox + Draper James, featuring Actress Reese Witherspoon's Southern-inspired products.

"We had a lot of fun putting the box together to honor all of us - mothers, sisters, friends, daughters and coworkers - as the powerful women that we are,” said Reese Witherspoon, who is famous for many movie roles including “Walk the Line,” which is about the life of Johnny Cash.

FabFitFun, a leading women's lifestyle brand in the subscription box market, delivers a $200 box of full size beauty, fashion, wellness, fitness, home and technology products each season to members for $49.99.

"FabFitFun has always been more than just a box - from our editorial content to social media and events, we are giving members and fans access to a lifestyle that puts fitness front and center," said Katie Ann Rosen Kitchens, FabFitFun co-founder and editor-in-chief.

A past FabFitFun box featured cruelty-free products by Deborah Lippmann nail polish, dr. brandt skin care and included a RealHer Lip Kit with liquid lipstick, gloss and liner in three shades.

Subscriptions are not limited to just boxes. Consumers can also sign up for the luxury living privileges of a subscription-based automobile, for example, or deliveries of high end jewelry and even a condo.

The Opulent Box offers high net worth subscribers a new bauble monthly for only $25,000 every three months. The box arrives in the mail with a piece of authentic designer jewelry along with an appraisal and certificate of authenticity.

GM just launched the Book by Cadillac subscription service to 10 of Cadillac’s luxury vehicles, including the ATS Coupe and the Escalade ESV. They cost a minimum of $100,000 each to purchase off the lot but for $1,500 a month or $18,000 a year, subscribers can swap brand new Cadillacs of various colors and styles up to 18 times a year to stave off repairs and boredom.

Finally, never buy another property abroad. Instead, enroll at Roam where a minimum of $500 a week or $1,800 a month entitles a subscriber to switch between two among six co-living residences in places like Bali, Miami, San Francisco and Tokyo. State of the art Roam amenities include a fitness center, maid service, wi-fi, yoga classes, a shared kitchen, co-working space and a pool.

Juliette Fairley is an author, lecturer and TV host based in New York.

© 2020 Newsmax Finance. All rights reserved.

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Tuesday, 11 June 2019 12:41 PM
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