Does the Makeup Subscription Boxes Business Plan Template Hinder or Help the US Job Market?

Does the Makeup Subscription Boxes Business Plan Template Hinder or Help the US Job Market?

Subscription based home delivery is definitely not a new retail concept. However, its online equivalent is. And, this equivalent appears to have exploded onto the U.S. market in the past year or two. Just type “subscription boxes” into your Google search bar. You’ll discover over 97 million results. The first of these results are derived of lists from top entertainment websites, review portals, and in-depth analyses by Forbes of this retail phenomenon. While most subscription box providers offer handmade or artisan products (i.e. exclusive products), the cosmetics niche appears to currently hold the biggest advantage in this market. Home delivered boxes of beauty products are currently all the rage. One can simply chalk this up to that child-like, Christmas feeling one gets when these makeup subscription boxes arrive packed with unknown goodies. Given the current popularity of this industry, we’ve decided to deeply examine the business plan template behind this growing trend, the major players in the field, and whether experts feel it will benefit the economy. In short, we seek to determine whether or not the Makeup Subscription Boxes Business Plan Template Hinder or Help the US Job Market?

What the Makeup of the Subscription Business Model

The mechanism is simple enough: each month, loyal customers of selected cosmetic brands receive a certain bundle of selected products. The business “handpicks” these items after the user fills in a personal profile survey which helps the company determine customer tastes, preferences, and style. Some surveys are brief enough to be filled in within a matter of minutes. Other surveys take a more comprehensive approach to their customers. The company then delivers at least hundreds of subscription boxes every month directly to the buyers’ doorsteps.

The makeup subscription box market emerged in the wake of the success of artisan marketplace platforms for e-commerce such as Etsy. Numerous manufacturers started out creating and selling custom, handcrafted items on Etsy. In turn, many experts view the rise of Etsy and similar e-commerce portals as an effort to counteract the sweeping supremacy of massive online retailers such as Amazon. Experts feel that this is the effect of an Internet revolution and democratization. In an age where small shops and retailers find the playing field ever more slanted out of their favor, the internet is removing a once massive barrier of entry. Of course, this trend isn’t exclusively restricted to just the makeup industry. It spans across various niches and markets (including gastronomy, entertainment, decorative home furnishings, fashion, pet food, and so on).

Makeup Subscription Boxes Business Plan TemplateWho are the Makeup Subscription Box Major Players


Birchbox is, without a doubt, the most recognizable type of subscription boxes delivered each month throughout the United States. The company, which specializes in beauty; grooming; and lifestyle products, officially launched in 2010. The company boasts no fewer than 800,000 active subscription beneficiaries around the world. It also earns $96 million in yearly sales according to company representatives.


The Wantable Company started out by offering beauty boxes. Since then, Wantable expanded on to deliver jewelry and intimates as well. Subscribers tailor the contents of their boxes according to their own personal and style preferences. We feel that this is actually one of the brand’s biggest edges on the crowded market. Subscribers cite customization and a wide range of brands among the top reasons why Wantable remains their favorite makeup subscription box provider.


Boxycharm also offers a wide range of brands and products. These products are very popular. They don’t solely focus on makeup. Boxycharm also delivers nail, skin, and hair care. Boxy creates themes for these boxes based on the season. What’s more, boxy usually includes deluxe, premium samples instead of less expensive, full-sized products.

Can this Business Model Survive in our Economy?

At the moment, the net profit figures yielded by such services appear impressive. At the very least, in some instances, they appear to give certain market players enough sustenance to pay basic bills and continue on the market. Many market experts feel that these box subscriptions represent the ‘mom and pop’ stores of yesteryear in an online form. But, can this market survive? According to Virginia Lee, senior research analyst at the market intelligence company Euromonitor International, the subscription market’s evolution of growth appears quite positive. As cited by Forbes, Lee forecasts that the market still has room to grow as subscription boxes continue to expand into more and more segments of the retail market. She also explains that their growth will likely slow down and stabilize as more and more of the bigger players take up the room previously relegated to newcomers.

The appearance of major retails (such as Target and Dollar Shave Club) substantiates the analyst’s observations. Many of these new entrances capitalize on the very factor that makes this business model appealing for consumers: personalization. Curated boxes; tailored, subscription-based services; celebrity affiliations – these are all of the oldest tricks in the retail book incorporated into the fast paced, online world. They seem to be working for the modern subscription box market. Businesses gain a steady stream of revenue. However, smaller retailers have limited abilities to scale this business model up, which may dampen their evolution. All in all, makeup subscription boxes are likely here to stay for at least a few more years. That is, until the likes of Amazon and other brick and mortar retailers push the small players out of the market.

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