Sales concept: Beauty Box

The most common reasons why women in the US are interested in a beauty box subscription. Summary as a downloadable PDF, see below

Beauty boxes, also known by the less glamorous name of subscription boxes, are a service that regularly provides customers with a wide selection of cosmetic and beauty products. Benefits for consumers include discovering products they might otherwise have been unaware of. They also benefit from lower prices compared to purchasing the items individually.

Beauty boxes have become increasingly popular in the United States since early innovators entered the market, such as Birchbox, which launched in 2010. According to a survey of US women interested in beauty and cosmetics, Birchbox is the country's most recognized beauty box service, with 54 percent of respondents familiar with the brand. While Ipsy Glam Bag's brand awareness is lower than Birchbox's, 38 percent of beauty box subscribers were Ipsy Glam Bag customers—the same percentage as Birchbox.

The beauty box industry has the potential for enormous growth in the coming years. Although 11 percent of respondents were already subscribers in May 2017, another 40 percent indicated they would be interested in a beauty box subscription. The biggest incentive for those interested in a beauty box subscription is the opportunity to discover new products. Companies considering entering the market or wanting to maintain their market share must therefore ensure they offer an attractive and affordable product. Of the consumers who canceled their beauty box subscription, 36 percent did so because it was too expensive, while another 28 percent were dissatisfied with the product selection.

Price is a particularly prominent product feature for 18- to 29-year-olds. Ninety-five percent of women in this age group consider it important, compared to 81 percent of those over 60. One possible way for beauty box providers to keep prices low is to deliver less frequently. This approach would likely resonate with consumers who don't want to be overwhelmed with cosmetic products, given that nearly half of women in the United States prefer to receive a beauty box once a month.

Interestingly, a high income doesn't necessarily translate into a desire for expensive subscriptions. Of the women earning more than $100,000 a year, 63 percent said they would prefer to spend up to $16 per box. After all, beauty boxes aren't the only cosmetics subscribers use. Forty-five percent of subscribers frequently buy products they've discovered in their boxes, and another 44 percent do so occasionally. Therefore, even those with a larger makeup budget feel the need to set aside money for new products they truly love.

Beauty Boxes

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