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Birchbox's Beauty Samples Subscription Boosts Sales, Its Own And Of Rivals

June 10, 2015: 12:00 AM EST
Birchbox's customers increase their spending on the online retailer's products by 38 percent after signing up for the company's beauty samples subscription service. However, according to data from Slice, other beauty retailers also benefit from this trend, with Sephora seeing a 5 percent boost and Ulta seeing a 6 percent gain among Birchbox's subscribers. Birchbox CEO Katia Beauchamp said she is happy that her company's subscription service helps other beauty retailers' businesses; however, Birchbox's loyalty program, which offers referral bonuses and points, helps ensure that subscribers head to the company's online store first before visiting those of its rivals.
Kim Bhasin, "Beauty Startup Birchbox Is Boosting the Sales of Competitors", Bloomberg Business, June 10, 2015, © Bloomberg L.P.
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