May Birchbox

15 Jun 19
Mummy Overload

  This is the life… Hello. Here is my month review on Birchbox, I’m writing this with a little bit of a heavy heart. Usually I’m really looking forward to review this and I’m all excited. I looked online this month to see what I would be getting in my box, I usually don’t do […]

14 Jun 19
GWP Addict

Beauty Bakerie has a fun Gift with Purchase right now! While supplies last with any purchase you will receive a free Game of Cones Eyeshadow Palette, a $38 value! You do not need a code for this, the palette will appear in your cart while still available. Shipping is free when you spend $50. I […]

13 Jun 19
GWP Addict

The Detox Market has a lovely new Gift with Purchase now available. While limited supplies last with any $200 purchase you will receive free shipping and this free seven piece Summer Bundle valued at over $260! You do not need a code for this, the bundle will appear in your cart while still available. Update: Free shipping […]

13 Jun 19
IcanGWP Gift with Purchase

The Detox Market US and Ca is giving away detox market bundle worth $260 with $200 purchase. Ulta Beauty is running free shipping all purchase and 20pc beauty bag with $30 purchase, perfect if you want to grab e.l.f. Poreless Putty Primer $8. Plus, there new gift with purchase offers: Nordstrom NARS GWP, B-glowing beauty […]

13 Jun 19
Deals Too Good to Pass Up

When Birchbox moved to its new tiered pricing structure on March 25 of 2019, it went into direct competition with the Allure Beauty Box. New month-to-month subscribers could choose to spend $15 with Allure Beauty Box or $15 with Birchbox. With the price increase Birchbox promised an extra sample, better brands, more choices, faster shipping, […]

12 Jun 19
GWP Addict

Hero Cosmetics has a cute Gift with Purchase now available. With any purchase (they sell Mighty Patch acne patches) you will receive a free five piece Wellness Pack valued at $25 (the pack includes single use samples of Liquid IV Hydration Multiplier, Benni Stamina, and Keeko Morning Mint Oil Pulling Sachets plus a mini Way of […]

12 Jun 19
The Journaling of Sandberg 101

A Tees (or t tee shirt, or tee) is a design of unisex material t-shirt named after the T form of its body and also sleeves. In this resource, we take a deep look at the ecommerce market– just how it transpired, what kinds of vendors are out there, as well as just what systems […]

11 Jun 19
IcanGWP Gift with Purchase

Macy’s 10 Days of Beauty Sale Event 2019 has begun at Macy’s 10 Days of Glam through 6/20! Plus, earn $10 Macys Money with Every $50 Purchase, new beauty PWP and Macy’s coupons. There are new beauty friends and family events at Paula’s Choice, Bareminerals and over 50 new beauty gift with purchase offers. Macy’s […]

11 Jun 19
GWP Addict

The bareMinerals Friends and Family Sale is going on now! During this sale you will get 20% off plus free shipping with any purchase; plus if you spend $75 you will also receive this free five piece gift valued at $50 (cosmetic bag and four minis). To receive the discount and the free gift enter […]

11 Jun 19
Dating, Breaking News, Celeb Gossip & Everything College | CC

Do you ever try your hardest to find a unique Father’s Day gift you think dad’s gonna love, just to see it still sitting in the box in August? Although it’s always nice to get dad an extraordinary gift that he’s not expecting, sometimes the best thing to do is to just get them something […]

11 Jun 19
Data-Labor-Technology

Matt Meeker, the CEO of Bark, which launched in 2011 with BarkBox, a curated subscription box for dog toys and treats, had Amazon’s subscription accounts team approach him earlier this year, several months after the brand first started selling its dog products on Amazon, to pitch him on a new selling model. According to Meeker, […]

10 Jun 19
Q13 FOX News

Top executives from more than 180 companies have a message for lawmakers: Restricting abortion is “bad for business.”

10 Jun 19
WGNO

Top executives from more than 180 companies have a message for lawmakers: Restricting abortion is “bad for business.” A letter endorsed by the business leaders appeared as a full-page ad in Monday’s New York Times, declaring “it’s time for companies to stand up for reproductive health care.” They argue that limiting access to comprehensive care, […]

10 Jun 19
Nine Lives

Good Morning! The first day of summer might be 20 days away, but once Memorial Day weekend comes and goes we all begin to transition into summer mode. That means it is time to dust off the winter slump and start to incorporate some feel good habits into the daily routine. 1 Dry Brushing. Dry […]

08 Jun 19
VentureBeat
We are entering into a new phase where the smartest direct-to-consumer companies are figuring out there is a better path to growth than relying strictly on venture capital funding. Over the last few years, we’ve seen fewer than a handful of exits in the the direct-to-consumer (DTC) category that could be deemed successful. The majority find themselves stuck in startup purgatory, waiting to enter the gates of liquidity. Don’t get me wrong; venture capital has been a tremendous asset to many DTC brands. Products that feel tangible gain access to initial friends and family investors, as well as angels who make up the top level of the VC funnel. Less than a decade ago, a plethora of DTC companies came onto the scene with significant early revenue traction, big rounds of venture capital, and high impact growth acquisition through the use of social paid marketing. Think Bonobos, Casper, Warby Parker, The Honest Company, and Birchbox, to name a few. But within a few years, the market became overly saturated, and social media acquisition channels became less effective at facilitating capital efficiency. Nonetheless, these companies had to keep raising funds at higher valuations to keep their existing investors happy. The problem was that funding was contingent on the promise of continued revenue growth which, in turn, created pressure on businesses to prioritize growth at any cost. Of course, when a company’s sole focus is to maximize shareholder returns through scale and speed, it develops undisciplined operational habits and is unable to build a sustainable and profitable business. Which brings us to the present day landscape — one where many of the largest DTC startups are sitting on significant capital raises with no exit in sight. Companies that started off strong, like Casper and Warby Parker, are now stuck in “purgatory.” The main problem these VC-backed brands are facing is that they’ve raised too much capital to slow down revenue growth in their current business model. Acquisition isn’t a viable option because the valuation expectations are too inflated for an acquisition to happen at a price that makes sense to a strategic buyer. Furthermore, their reliance on their direct distribution channels and differentiated supply chains means there are limited cost synergies or vertical integration opportunities that a transaction requires. The irony is that the same distribution channels that were the reason for rapid success now block strategic exits. Need for new approaches None of this is to say that consumer brands are losing their appeal. Consumer tastes continue to be subjective and ever-changing, providing tremendous opportunities for new brands to enter the market. The difference now is that the most typical approach has failed, bringing us to an important crossroads as DTC companies formulate new approaches to building and scaling their brands. They can continue to try to accelerate revenue growth to drive up valuations, even at the cost of being able to build a sustainable long-term business, or they can slow down growth to focus on building a long-term sustainable business model. One approach that is seeing success is a Holding Company model, where companies build a portfolio of product lines to create shared cost efficiencies internally. Harry’s Ventures and Glossier are two great examples of this, both recognizing this model as an opportunity to avoid purgatory and create a sustainable standalone business. In February 2018, popular shaving company Harry’s raised $112 million to move beyond shaving. It went from competing with Gillette in the razor industry to taking on Procter & Gamble through strategic venture capital investments. Similarly, Glossier, a digital-first beauty brand, launched Glossier Play on the road to becoming the next big beauty conglomerate. Harry’s was acquired by Edgwell for $1.37 billion in May 2019, and it’s likely Glossier will be the next brand in line for a big payday given its attractive portfolio approach. Another common tactic we’re seeing is brands testing wholesale in the hopes of acquiring more customers. A few examples of this are Allbirds and Reformation selling through Nordstrom, and Bevel selling on Amazon. In each case, these brands used Nordstrom and Amazon as a marketing funnel, helping them get in front of a new set of consumers more efficiently. These newer approaches minimize the need for significant VC, allowing companies to focus on profitability instead. And while many DTC brands have had to suffer in stasis to demonstrate the necessity of a new model, I’m certain many of the companies that currently find themselves struggling for an exit could have been in a very different position today had they raised less capital and focused on capital efficient growth early on. To that end, it’s my prediction that the tides are changing and that we’re on the precipice of a new era of DTC growth — an era with less reliance on VC and more focus on innovative growth tactics. Only then can companies avoid joining the ever-growing population within startup purgatory. Alex Song is founder and CEO of Innovation Department.