Post on 18-Aug-2015
What is a subscription box?
• New take on established concept• Package of retail products sent to
customers on a recurring basis• Cater to a wide variety of niche
consumers – estimated 500 subscription box providers in U.S.
• Industries:– Groceries and food– Fashion, jewelry– Makeup– Petcare
What worksBirchbox:- Launched in 2010- $10 makeup sample
boxes/month- 800,000 subscribers/month- $125 million in sales in 2014- Company valued at $485
million in 2014- Retail store in SoHo, NYC
Source: Forbesipsy- Founded in 2011 by Michelle
Phan, YouTube celebrity- $10 glam bags/month- 1 million subscribers/month- $120 million in sales in 2014
Source: Entrepreneur
Customer benefits
• Discounts• Access to unique
products• Flexibility– tiers, frequency
• Professional expertise
• Convenience/minimal effort
• Element of surprise
The problem
• U.S.-based boxes don’t ship to Canada, or Canadians must spend extra $10-15 on shipping
• U.S.-based boxes don’t cater to Canadian trends• Currently very few Canadian sub boxes– Mostly groceries– No jewelry or artsy boxes
• Canadian consumer scope is limited by geographical location– Online shopping is not popular because shipping
costs in Canada are very high
Wear I’ve Been
• Jewelry, accessories, art prints• Cater to Canadian consumer– Young women (18-35)– Approx. 4.8 million in Canada
• Diversity in trends–Local artisans–Travel boxes–Ethically sourced
Costs and revenue
• Sourcing products• Packaging supplies• Packaging space• Contract with
Canada Post• Website hosting• Website maintenance
• Monthly subscription fees
• Advertising space in/on boxes
Challenges
• Novelty/resistance• Scope –Mass market vs. artisan–Established brands
• Lack of direct choice– Competition with online shopping
Next steps
Pre-launch in January 2016:• Get 250 pre-orders• Set up online store• Partnering with local
designers/artisans• First to market: decide price point,
first pick of artisans, cater exclusively to Canadian consumers
• Startup cost $10k