Subscription Box - Beauty & Apparel

Goals

To find the average pricing, frequency of delivery, and churn rates for subscription boxes in the the beauty and apparel industry.

Early Findings

Subscription Boxes Industry

  • Fifteen percent of online shoppers in the United States have signed up for one or more subscriptions boxes.
  • Nearly 47% of the available subscription boxes were created since 2017. The number of these boxes increased by 40%, "now including more than 3,500 different services."
  • "The online subscription market has doubled each year for five years now, with some of the largest players pulling in revenues as high as $2.6 billion in sales."
  • A survey pulled on 2,500 Americans found that Americans think generally that they spent $79.74 a month, on average. "But when they were prompted to consider some specific examples of services, including Netflix, Spotify, Birchbox, Dollar Shave Club, GoDaddy, Playstation Now, iCloud, Fitbit, etc., they raised their monthly estimate to $111.61 -- a 40% increase. "
  • When they included the wifi and cellular service required to use these services, as well as wellness apps, gaming services, digital newspaper and magazines subscriptions, meal kits, subscription boxes and more, subjects realized they were actually dropping $237.33 a month on average -- a 197% increase from their first guess to what they were actually spending.

Beauty Industry:

Birchbox:
  • Average price: $10 per month or $110 per year.
  • Frequency: monthly.
  • Content: it provides an assortment of five beauty samples, including a men’s grooming box. Items include lipstick, mascara, skin cream, dry shampoo, and fragrance, all from high-end brands.
GlossyBox:
  • Average price: $17.50 to $21. An average of $19.25.
  • Frequency: monthly.
  • Content: It provides both samples and full-sized products from trendy brands. This service usually sends the same items to all its subscribers each month.
Julep
  • Average price: "The service has two tiers: My Maven, which provides $40 worth of products for $25 a month, and Maven Luxe, which delivers at least $60 worth of products for $40 a month." An average of $62.50.
  • Frequency: monthly.
  • Content: It has a focus on nail polish, though it includes other beauty items as well.
GoodBeing
  • Average price: It offers a choice of subscriptions: an all-beauty box and a “lifestyle” box. Both boxes are available in a $10-per-month mini size with only two items, or a $25-a-month standard size with four to five items of varying sizes. An average of $17.50.
  • Frequency: monthly.
  • Content: it focuses on organic and eco-friendly products. The all-beauty box contains makeup and other beauty products, and the “lifestyle” box adds in wellness items like sunscreen, supplements, and products for the home.
Dollar Shave Club
  • Average price: prices range from a two-blade razor for $3 per month to a six-blade model for $9. An average of $6.
  • Frequency: monthly.
  • Content: it delivers high-quality razor cartridges for both men and women.
Industry average price: (10+19.25+62.50+17.50+6)/5 = $23.05.

Proposed next steps:

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