Birchbox CEO Says Walgreens Partnership Will Help Court 'Non-Obsessed' Shoppers
*By Michael Teich*
Birchbox wants a bigger piece of the cosmetics market, but courting obsessive shoppers is not part of its plan, according to CEO and co-founder Katia Beauchamp.
"We are focused on that non-obsessed consumer, that casual consumer," she said in an interview with Cheddar Friday.
The Birchbox subscription service works like this: After subscribers complete an online profile about beauty preferences, Birchbox ships a box of five sample products, giving them a chance to try a mix of well-known and niche brands at a price point of $10 per month.
Although it may be most-known for its e-commerce savvy, Birchbox is now breaking into brick-and-mortar through a partnership with Walgreens. Beauchamp said Walgreens helps Birchbox accomplish its goal of reaching a large pool of consumers who may not necessarily be seeking out beauty products. Curated selections of Birchbox products will be available at 11 Walgreens across major metropolitan markets.
The competitive beauty industry, which is expected to exceed $390 billion in market value by 2023, is dominated by behemoths like ULTA Beauty ($ULTA) and Procter and Gamble ($PG).
But Birchbox thinks it can distinguish its brand by courting the casual consumer.
"We identified that there was a really big opportunity with the average beauty consumer," Beauchamp said.
"The Walgreens consumer is America, is everybody," she said. "To own the customer, you can't be a single channel. You can't just be online, you can't just be offline."
Subscription boxes have been a popular business model adopted by a number of industries ー including prepared meals, nutritional supplements, and shaving kits. But that model was somewhat tarnished after meal-kit company Blue Apron's IPO flop raised a red flag for investors. Beauchamp, however, remains unfazed by Blue Apron's epic bust ー and she's confident Birchbox will avoid the same fate.
"I think we're all really focused on differentiation. We just talk a lot about understanding who this customer is, and how do you convey to this customer care and love," she said. "We really are passionate about doing something that has never been done in a multi-billion dollar industry."
For full interview [click here](https://cheddar.com/videos/birchbox-expands-into-retail-to-broaden-customer-base).
After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.
With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.
Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.
While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.
April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.
Caitlin Clark is heading to the Indiana Fever, the number one draft pick and the highest-scoring college basketball player of all time. And while she may not be getting millions from the WNBA, there's a few ways she'll net compensation for her generational talents.
Author of 'Clean Meat,' Paul Shapiro joins Cheddar to discuss how the cellular agricultural revolution helps lower rates of foodborne illness and greatly improves environmental sustainability. Plus, how his company The Better Meat Co. is bringing healthier food options to the table.
Recent headlines might make it sound like World War III is imminent, but when it comes to your finances, it's not the time to panic. The market is coming off its longest winning streak since 2011.
You may have noticed fewer new venture capital-backed startups (like Airbnb or Uber) lately. The market slowed to a crawl after 2021, but things are expected to take off again in 2025.
Corporate earnings season is underway, that time when companies share their billions in sales or double-digit profits. But the data shows even companies are struggling with high inflation and interest rates.
