Quote: Originally Posted by
Glitterazzi /img/forum/go_quote.gif
Really interesting article about Birchbox and how it's struggling to expand. It's too bad the author didn't make any attempt to talk to people who actually like their BB. I don't think five people is a very good sample.
http://ohhword.com/2014/02/12/is-birchbox-starting-to-hit-some-scaling-woes/
Reading that article now. This part annoys me.
Quote: One particular subscription fan, who uses fashion subscription service Stitchfix religously and is one of its longest running customers, told me she tried Birchbox for awhile. The variety in each box didn’t keep her interest. She’s switched to Michelle Phan’s
Ipsy instead because it sends her more makeup and “stuff that isn’t just anti-aging wrinkle cream.â€
Another person trying out Birchbox and Ipsy echoed the sentiment, telling me she is considering canceling her Birchbox and prefers Ipsy because, “The products feel a little less samply and it comes together in a cute little makeup bag whereas Birchbox just comes in a box.â€
Birchbox is probably taking on more customers as fast as it may be losing some. But it’s not ideal for a subscription e-commerce company when users start jumping ship for the competitor.
And what the article doesn't mention is that while Ipsy "obtains" Birchbox subscribers, Birchbox is gaining Ipsy subscribers who are stick of the cheap quality of makeup sent out. Sure Ipsy send out more makeup, including more full size, but the vast majority are "no-name brands" that uses private label manufactures so their products are sold under different labels which are made in unknown origins and may or may not be animal tested. Birchbox continues to send out higher quality products than Ipsy. What hurts Birchbox is the fact that in order to accommodate 400,000+ subscribers they have to send out a huge amount of box variations (this month it was 61 or 63 variations) and reduce the size of products sent due to the cost for the company they're working with.
I love Birchbox and I love Ipsy but both are vastly different in the types of products they send out as well as the quality.
BTW - notice you can't even comment on the article?