In the USA, investors are holding the faith with subscription beauty product samples. In their first big financing round, Birchbox raised $10.5 million from an investor group led by Accel Partners (via):
"Birchbox, the innovative startup that brings members access to the best in high-end beauty for $10 a month, announced today the close of a $10.5 million Series A round of funding, led by Accel Partners.
The new financing will be used primarily to pursue continued growth in Birchbox’s core offer. Lead investors from the company’s seed financing in September 2010 also invested in this round, including First Round Capital."
Birchbox will soon be one year old and during this startup phase their concept has already been copied several times. In Germany, a similar idea has been executed by Glossybox, who is financially supported by Holtzbrinck Ventures and Investment AB Kinnevik.
Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.
There are a number of sites in the US adopting the subscription model for various products. It seems to be working well for men's and (especially) women's accessories...time will tell if it works for regular clothing. Both men's and women's sites are popping up, some with celebrity endorsement and seem to be catching on. Wonder if the European and American consumer will react the same way.
Posted by: Galia | 09/20/2011 at 09:04 PM