Birchbox may have laid the foundation for the subscription beauty box industry, but data shows Ipsy is attracting all of the new subscribers. Slice Intelligence reports that Ipsy attracted 11 percent more new subscribers in 2016 compared to 2015, making the merchant the fastest growing beauty box service. Ipsy also generated 62 percent of all beauty subscription sales in 2016, another indicator of Ipsy’s success. In contrast Birchbox saw a seven percent dip in subscribers during the last twelve months.
Birchbox makes up revenue in its marketplace
While Birchbox has seen a small drop-off in subscribers, the brand is making up the revenue in the marketplace. Data highlights that 62 percent of Birchbox’s online sales were made in their marketplace.
beauty boxes help shoppers discover new products in the marketplace
Beauty box buyers do, in fact, spend more on beauty products after subscribing to a service. On average, beauty box subscribers spend 14 percent more on beauty supplies following their first subscription purchase. Ipsy subscribers spend 19 percent more on the category in the six months following their first subscription purchase. Ipsy subscribers gave the greatest lift to Birchbox’s marketplace, spending 53 percent more with the merchant after subscribing to Ipsy. Similarly in Ipsy subscribers also spent 28 percent more on Mary Kay make-up, and 16 percent more for beauty supplies at Sephora.com
Birchbox box subscribers follow a very similar spending trend. as shoppers spend 18 percent more on beauty products after receiving their first beauty box.
18 percent of beauty box buyers also cook with meal kits
Beauty boxes buyers are also having an impact in the meal delivery space. Over 18 percent of Birchbox and Sephora Play subscribers also used a meal service in the past three years. Blue Apron was the biggest benefactor, followed by Hello Fresh.
about this data
With a panel of over 4.7 million online shoppers, Slice Intelligence gives the most detailed, and accurate digital commerce data available, and is reported daily.
Slice Intelligence is the only service to measure digital commerce directly from the consumer, across all retailers, at the item level, and over time. Our retailer-independent methodology precisely measures commerce as it happens. By extracting detailed information from hundreds of millions of aggregated and anonymized e-receipts, Slice can map the entire Purchase Graph, connecting each and every consumer to all their purchases.
Slice gets its data from e-receipts – not a browser, app or software installed by the end-user – so its measurement reflects comprehensive shopping behavior across multiple devices, over time which are key in an increasingly omnichannel retail world. Slice Intelligence is the exclusive e-commerce data provider for the NPD’s Checkout Tracking e-commerce service.