Have we finally surpassed the peak of hype for subscription boxes in retail?
When looking into the trends within the beauty space, it certainly appears that way. Although consumers are still looking for convenient options when it comes to shopping, boxes may not be the only answer. Online is growing quickly and in-store sales still remain strong in this sector.
By analyzing the spending habits of customers at Ulta, Sephora, Birchbox and Ipsy, 1010data found that:
- Although beauty subscription boxes experienced significant growth after launching, that growth has moderated in recent years and they only represent 5% of the market
- Ulta’s in-store share leads the space with 49% of sales
- Ulta & Sephora’s combined online sales grew 14% YOY, while subscription boxes declined
- Birchbox’s returning customers spent 10% less in 2017 than they did in 2016, contributing to a 22% decline in sales YOY
- 88% of all active beauty shoppers only shopped with one retailer in 2017
Click here to access the full report.