Kevin Ma

Ladies: have you ever had the experience of purchasing makeup only to realize later that it is the wrong shade, or doesn’t work for your skin type? This problem is compounded by the fact that makeup is very expensive and you can’t keep testing out different kinds to find one that works.

This is the problem that Hayley Barna and Katia Beauchamp are attempting to solve through their innovative new business, Birchbox. Birchbox sends a surprise box of cosmetics to subscribers each month, which allows subscribers to try out different products for a minimal cost. The price for this service is $20 per month, and all the products are donated by large cosmetics companies since by participating, they are gaining exposure for their brands.

Hunches

Barna and Beauchamp came up with the idea for this model in an interesting collision of hunches. First, they noticed that the internet commerce industry did very well in replenishing products, but had left the cosmetic market behind, partly because cosmetics require a lot of first-time purchases. Customers are hesitant to make these first-time purchases over the internet because it is more risky to buy makeup without first testing it.

The second hunch that combined to create the business was in observing how a close friend of Barna’s – a beauty editor – would help her friends by personally choosing makeup for them based on her knowledge of the different types of cosmetics. Barna and Beauchamp saw how women appreciated this service, and they decided to combine this idea with an internet business.

The Result

For twenty dollars, customers can get a box filled with surprise products that they can test out in limited sizes. The next month, the products will be completely different. The products are chosen based on specific problems that the women identify upon registering for the service. Already, Birchbox has over 400, 000 subscribers, and they have expanded to add a men’s subscription service for different products. The company also has an online store where customers can order larger quantities of products that they enjoyed in the subscription program.

Birchbox helps men and women become exposed to a variety of brands for a much smaller fee than ordering each product would cost individually. Some believe it will revolutionize the cosmetic industry. It is certainly an interesting model.