Birchbox, the beauty e-commerce platform founded in 2010, spent last year carrying out cost-cutting measures, including downsizing staff and halting plans to expand its brick-and-mortar presence. This week, CEO and co-founder Katia Beauchamp confirmed to WWD that the company had turned a corner and reached profitability. According to company spokespeople, Birchbox brings in 65% of revenues from its $10 monthly subscription box service, of which it has one million subscribers, and 35% from full-size products on the online store.
However, the company is facing serious competition from elsewhere in the market. Ipsy, which also offers offers monthly deliveries of sample products for $10, currently has 2.5 million subscribers and is growing quickly. Beauty retailers like Sephora and Ulta Beauty are also improving their customer experience both in-stores and online. Birchbox is making efforts to compete with a new TV spot and a partnership with MAC Cosmetics.
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