Beauty sampling service IPSY is acquiring beauty box subscription company BoxyCharm. The combined companies will be called Beauty for All Industries (BFAI) but will continue to operate as independent brands. Together, they serve a global community of more than 30 million “beauty enthusiasts.” The new BFAI expects to earn $1 billion in annual revenue this year.
“We are thrilled to add BoxyCharm to BFAI, complementing the IPSY offering and strengthening our position in the personalized beauty ecosystem,” said Marcelo Camberos, co-founder and CEO of IPSY, and newly appointed CEO of BFAI, in an October 30 announcement.
“Both brands share a commitment to celebrating diversity and enabling inclusion through beauty, which our world needs more than ever today. Joe has built an amazing business and an avid community of beauty enthusiasts. BoxyCharm has always pushed us to be better and now that we’re under one roof, we’re looking forward to growing and innovating together,” added Camberos.
Joe Martin, BoxyCharm founders, will continue to lead the company. He will also become a member of the BFAI board.
“2020 has only increased the appetite for the convenience of delivery, the joy of discovery and the appreciation for self-expression,” said Martin. “Joining BFAI is a great culture fit and provides an exciting opportunity to learn from each other, share best practices and apply operating efficiencies that will provide an even better shopping experience for our existing and new customers.”
IPSY beauty box subscription
IPSY is a subscription beauty bag service that includes sample and full size beauty products with everything from moisturizer and lipstick to hair products and cleansing masks. A Glam Bag subscription is $12 a month, or $132 per year, with a value over $50 per month.
A Glam Bag Plus subscription includes five full-size products that are personalized for the user. Monthly subscribers pay $25 a month for products valued over $120. The Glam Bag Ultimate subscription includes eight full-size beauty products and four deluxe samples, plus a themed makeup bag. It runs $50 a month for products valued at $250 and up.
BoxyCharm beauty box subscription
BoxyCharm is a customized beauty box subscription service that ships full-size products to its members, called Charmers, each month for $25 (Base), $35 (Premium), and $50 (Luxe) with free shipping in the continental United States. Base boxes contain five products with an average total value of $175, Premium boxes contain six to seven products with an average total value of $215, and Luxe boxes include eight or more items with an average total value of $395.
Depending on their BoxyCharm beauty box subscription plan, Charmers can choose one or two items per box. BoxyCharm memberships are available by the month or in 3-, 6- and 12-month increments. The more boxes a member subscribes to, the less they will pay per box, but prepayments are required. Each membership plan includes customization options, add-ons, rewards and popup deals. The membership program is automatically renewable, but members can cancel at any time.
BFAI to launch Refreshments, a personal care subscription
Later this year, BFAI will launch a personal care subscription called Refreshments that will initially include items like face wipes, hand cream, body cream and body wash. The company expects to expand the product line next year.
Future plans for BFAI
In addition, the combined companies will focus on innovation and expansion in four broad categories:
- Personalization using machine learning to create a customized experience
- Merchandising innovation through partnerships with third-party brands
- Community engagement through the creation of original content and sharing of user generated content to an audience passionate about beauty products
- Investment in team and infrastructure
With such similar offerings, IPSY’s acquisition of BoxyCharm is a good strategic move. Together, the companies can serve tens of millions of customers, boosting the discoverability and customization factors beauty boxes are known for. The companies said they will continue to operate independently, but we wonder how this will work from a subscription standpoint. Aside from leveraging technology to their advantage, will the companies combine their offerings, or operate as completely separate business segments? We think this is a great match and are eager to see how BFAI executes the marriage of IPSY and BoxyCharm.