Who Boxed It Better? – The Next Big Thing

Who boxed it better?… Birchbox Vs IPSY

Birchbox may have launched the subscription box trend, but did they stick around long enough to make a real impact? Back in 2010, the beauty box pioneer sent samples to women for $10 a month, raking in $80 million in funding and attracting over a million subscribers. Fast-forward seven years and the company was drowning in debt, laying off employees, and struggling to survive. What went wrong?

To understand where Birchbox missed the mark, we take a look at Ipsy. They showed up two years after Birchbox, but by 2017, had somehow managed to snag twice as many customers sending out the same number of samples per month at the same price. So, what was IPSY’s secret sauce? They realized that beauty boxes weren’t just about the samples but about the story—empowering women to explore and define their own beauty styles.

IPSY nailed it by creating a buzzing online community. They bridged the gap between customers and beauty brands, pairing up influencers with companies and making their subscribers feel like part of a movement. Their storytelling connected deeply with subscribers, turning them into loyal fans. Meanwhile, Birchbox seemed a bit lost. In 2015, their founders told Fast Company that the monthly beauty subscriptions were just a “Trojan horse” to get into customers’ homes, reflecting a disconnect from the emotional needs of their audience. Instead of focusing on building loyalty, Birchbox tried everything under the sun – retail stores, men’s products, premium boxes – you name it.

While Ipsy doubled its subscriber base, things weren’t looking great behind the scenes at Birchbox. Employees were losing faith, leadership was all over the place, and despite their best efforts to breathe new life into the brand, they just couldn’t seem to create that special connection to keep customers coming back for more.

Fast forward to September 2023, and Birchbox is trying to make a comeback. But with higher prices and fewer products in the box, feedback has been less than stellar. On the other hand, Ipsy has grown its monthly subscriber count to a whopping 3.5 million, and a content network, reaches 46 million people.

So what’s the takeaway? Having a great product isn’t enough anymore and hasn’t been for at least a decade. To win in increasingly crowded markets, brands need to connect with a story that resonates and is built on truth—today’s customers are too discerning for anything less. With 3.3M Instagram followers and counting, Ipsy has nailed this concept, proving that you don’t need an original idea; you just need to do it better.

Beauty Advent Calendars: Where Luxury Meets Holiday Magic

Ever wondered why beauty advent calendars are such a big deal? Luxury brands like Yves Saint Laurent (YSL) have increasingly used these calendars to stand out in the crowded world of holiday retail. Pulling from a similar retail strategy as subscription boxes, beauty advent calendars are packed with surprises that allow customers to try a wide range of a brand’s products. These calendars often cost a fraction of the total product value, and customers see this as a way to experience these luxury products without breaking the bank, especially during peak retail season.

The YSL advent calendar is a prime example. It’s 24 days of a mix of full-size and mini goodies from their makeup, skincare, and fragrance lines all packaged in an experience designed to delight. Looking beyond the products, these calendars take advantage of the surprise element that comes with opening gifts every day. They tie into the holiday spirit by bringing little pockets of joy to customers and building anticipation. It’s little wonder that many customers pre-order these calendars months in advance and see it as a way to spoil themselves at Christmas.

But these calendars aren’t just about spoiling yourself (though that’s a big part of it). They’re a brilliant way for brands to connect with customers every single day for 24 days straight. Thanks to social media activations and widespread influencer marketing, this builds brand loyalty from existing customers and draws in new customers. They say it takes 21 days to build a habit. At 24 days, YSL has customers positively hooked during the most memorable time of the year—a game-changer!

Beyond the festive, YSL also strategically taps into the sustainability movement with eco-friendly packaging and 100% recyclable cardboard—a detail that resonates with today’s conscious consumers and adds another layer to the brand’s appeal.

In short, YSL’s advent calendar is more than just a collection of beauty treats—it’s a clever marketing strategy that boosts engagement and protects the brand’s luxury image even as it makes it more accessible to a mainstream audience. And they’re not alone – other high-end brands like Charlotte Tilbury and Diptyque are jumping on the advent bandwagon too, proving that these calendars are fast becoming a staple marketing strategy for beauty brands to expand their storytelling during the holiday season.

Retail Hurry

Remember when holiday shopping meant battling crowds on Black Friday and frantically clicking “expedited shipping” in mid-December? Well, those days might be behind us. This year, both retailers and consumers are rewriting the rules of the holiday shopping game, and it’s all about playing the long game.

This shift is happening as peak season kicks off earlier than usual. The ports of Los Angeles and Long Beach reported their third-strongest month ever in July—typically a time when inventory levels dip in preparation for the holiday surge. Trucking activity has also spiked, with visits to distribution centers jumping 30% year-over-year. These early signs suggest both retailers and shippers are preparing for an elongated holiday season, and consumers are adjusting their shopping habits to match.

At the same time, the rush for faster deliveries seems to be slowing down. UPS and USPS are both seeing a decline in expedited shipping as shoppers increasingly choose more affordable, slower options. This trend is driven by several factors, including looming port worker strikes, supply chain disruptions, and the desire to cut shipping costs while freight rates are low.

With big sales events like Amazon Prime Day (now twice a year) and extended Black Friday deals, consumers are spreading their shopping throughout the year, reducing the traditional holiday shipping rush. As a result, the peak season is flattening out, and companies are adapting by pushing the last shipping dates for Christmas further back.

Ultimately, consumers are showing they’ll wait a bit longer for their orders if it means saving money—especially now that retailers can offer budget-friendly delivery options thanks to innovations like gig economy services. This shift toward earlier, slower shipping may just be the new normal.