BirchBox the Future Business Model of E-Commerce

17,347 views
17,266 views

Published on

Table of Contents
Executive Summary ii
Table of Figures ix
Introduction 1
E-Commerce 3
-Current Statistics 3
-History of E-Commerce 7
-Mobile Commerce 13
-Tablets and Future of E-commerce 14
-Advantages &Disadvantages of E-Commerce 18
Subscription Business Model 20
-What is Subscription Business Model? 20
Birchbox: the Mother of all Boxes 24
-BirchBox Overview 24
-BirchBox Healthy growth 26
-BirchBox Business Model 27
-BirchBox Challenges 33
Other Good Box Examples 34
-Lacquerous 34
-Manpacks 35
-Nature Box 36
-Why some subscription boxes are successful? 39
Failed Boxes 42
-Ellie 42
-Dollar Shave Club 44
-Rocksbox 46
-Why Boxes Fail? 47
Current Waves that are driving the Market 48
1. Social Commerce 48
2. Private Sales 53
3. Mobile / Location 54
Future E-Commerce Trends 55
1. Data is the beating heart of e-commerce 55
2. Cutting Out the Middle Man 56
3. Always-on shopping experiences 56
4.Social Shopping: Video experience in E-commerce 57
Conclusion 60
Recommendations for BirchBox 62
Bibliography 63
Appendix 76


NOTE: Guys, due to the high demand and time that I spend on sending out this report as a favor, I am starting to charge a fee of $25 if you would like to have my thesis. No more favors!
If interested, email me at starikovayelena@gmail.com



Published in: Business, Technology
2 Comments
23 Likes
Statistics
Notes
No Downloads
Views
Total views
17,347
On SlideShare
0
From Embeds
0
Number of Embeds
1,108
Actions
Shares
0
Downloads
587
Comments
2
Likes
23
Embeds 0
No embeds

No notes for slide
  • Facts
  • Advantages and Disadvantages of E-Commerce
  • Types of Subscription Business Model
  • Good
  • Subscription business model has its fails as well. Clear examples are Ellie, Dollar Shave Club and RocksBox. These companies does not solve any real problem neither offer anything new. Most of failed start-ups have a bad customer service and poor quality product. Only combination of good price, quality product and great customer experience can results in a profitable business.
  • *Survey by Techcrunch.com
  • BirchBox the Future Business Model of E-Commerce

    1. 1. B I R C H B O X The Future Business Model of E-Commerce Yelena Starikova September 2013 EUROPEAN UNIVERSITY Business School Undergraduate Thesis
    2. 2. ~7mln./yr 190 Global offices: NY, Paris, Barcelona, London 4 11.9 400.000monthly subscribers mln. venture capital money employees revenue
    3. 3. AGENDA • E-commerce • Subscription Business Model • BirchBox • Good & Bad • Future Trends • Conclusion
    4. 4. 1 E-Commerce
    5. 5. econintersect.com
    6. 6. B2C Ecommerce Sales Share, by Region 2011-2016 source: emarketer.com
    7. 7. Michael Aldrich Invents Online Shopping 1979
    8. 8. E-Commerce BIG Influencers AMAZON MOBILE TABLET
    9. 9. econintersect.com
    10. 10. • Overcome Geographical Limitations • Lower Costs • Enable Deals, Bargains, Coupons, and Group Buying • Quick search of the product • Provide Abundant Information • Open all the Time • Ecommerce Lacks Personal Touch • Waiting time • Security & ADVANTAGES DISADVANTAGES
    11. 11. 2Subscription Business Model
    12. 12. Frequent Infrequent Freemium
    13. 13. CURATION CONVENIENCE TRAIL/ SAMPLING 1 2 3 Benefits of Subscription E-Commerce
    14. 14. 3 BirchBox
    15. 15. BIRCHBOX SURPRISE in EVERY BOX
    16. 16. E-Commerce Business Model Cycle
    17. 17. New Business Model Copycats Apply to Different Categories Apply Innovative marketing Strategy Aggregator Description Subscription Companies originates BM originated from offline analog. BirchBox Other companies clone good BM with different branding, geography. BeautyBox. GlossyBox Several companies begin replicating the BM in different product categories. NaturBox, ManPacks Companies will innovate with pricing, content, marketing, etc.. Not another Bill Website that aggregates specific type of info from multiple sources. N/A Source: E-Commerce landscape 2012. by Josh Yang E-Commerce Business Model Cycle
    18. 18. ONE BIG POINT HAYLEY BARNA+ KATIA BEAUCHAMP
    19. 19. BIRCHBOX CONTENT
    20. 20. BOX CONTENT SHOP 1 2 3 360 Degrees of Discovery
    21. 21. Problem Ideal Target Unique Value Proposition Solution Channels BIRCHBOX BUSINESS MODEL • There is no easy way to acquire beauty samples. • Consumers need some extra help in picking up a new beauty product. • Young woman between 25 to 39 with an annual income of $35.000-$55.000 • Female who loves beauty and takes care of looks. • Beauty products every month at clients convenience. • Flat predictable monthly fee. 1.Subscription service 2. Original content 3. Online shop Monthly roster of articles and videos, daily blog posts, Facebook, Twitter, Foursquare, Pinterest, and Youtube
    22. 22. Revenue Stream Cost Structure Key Metrics Early Adopter Unfair Advantage BIRCHBOX BUSINESS MODEL • Subscription revenue • "Affiliate" fee. • Cost to acquire the samples, marketing, shipping cost, employees salary, warehouse cost, technology infrastructure cost. • Number of new subscribers • Number of cancellations per month • Number of people buying products Birchbox has captured the novelty effect which gave a lot of publicity in media coverage. 1. Unique and original business concept 2. Lead in “beauty product sample” market 3. BirchBox collects feedback from customers and provides results to suppliers.
    23. 23. Value to the customer Value to the brand • Discovery • „Surprise effect” • Personal curation • Ability to collect feedback • Additional distribution channel &
    24. 24. CHALLENGE #1 Limited Sample Amount CHALLENGE #2 BirchBox requires special size samples BIRCHBOX CHALLENGES
    25. 25. 4 Good vs. Bad
    26. 26. NATUREBOX MANPACKS LACQUEROUS
    27. 27. MANPACKS TARGET GIRLFRIENDS TRENDY PRODUCTS “SNOOZE” SHIPMENTS
    28. 28. WHY SUCCESS? LEAN OPERATIONS GOOD PRODUCT GOOD MARKETING STRATEGY 1 2 3
    29. 29. ELLIE ROCKSBOX DOLLAR SHAVE CLUB
    30. 30. ELLIE DIDN’T SOLVE MAJOR PROBLEM POOR SERVICE QUESTINABLE MARKETING STRATEGY
    31. 31. Why FAIL? Don’t solve real problems Add no value to the customer
    32. 32. 5 Future Trends
    33. 33. SOCIAL COMMERCE PRIVATE SALES MOBILE/ LOCATION 1 2 3 Current Waves of Innovation
    34. 34. Data is the beating heart of E-commerce Cutting Out the Middle Man Always-on shopping experiences Video experience in E-commerce Future Trends
    35. 35. 6 Conclusion
    36. 36. • customers are willing to spend over $45 monthly on subscriptions* • interest in curated shopping services • personalized and meaningful relationship with the brand BIRCHBOX is the FUTURE? “NETFLIX of BEAUTY”
    37. 37. Do you want to read 76 pages Thesis as well as recommendations for BIRCHBOX? Contact me: starikovayelena@gmail.com

    ×