retail supply chain breakout session · types of box business models sampling/drive to retail...
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Retail Supply Chain Breakout SessionGeorg RichterCEO & FounderOceanx
POWERING THE NEW MEMBERSHIP ECONOMY
RILA CONFERENCEFEBRUARY 13, 2017
FOUNDED 2016
SOUP-TO-NUTS SUBSCRIPTION PLATFORM
MANAGING $1B+ IN SUBSCRIPTION BUSINESS
TYPES OF BOX BUSINESS MODELS
SAMPLING/DRIVE TO RETAILBirchbox, Sephora Play, IPSY, Target Beauty
CURATION/STYLE/CELEBRITYStichFix, Trunk Club, Rachel Zoe, Bespoke Post
FAN/SPECIALTYLootCrate, BarkBox, NatureBox, Candy Club
REPLENISHMENT PLUSDollar Shave Club, The Honest Company
WELCOME TO THE
Club
CONVENIENCE
REPLENISHMENT
VALUE
PORTIONING
COMPLIANCE
BELONGING
ANTICIPATION
SURPRISE
CURATION
EXCLUSIVITY
DISCOVERY
BEING KNOWN
THE PSYCHOLOGY OF BOX SUBSCRIPTIONS
IT’S ALL ABOUT EFFICIENCY &
SOPHISTICATION IN SUPPLY CHAIN &
OPERATIONS
3 NODE DISTRIBUTION
Columbus, OH 59.0%
Arden, NC 15.4%Foothill Ranch, CA
25.7%
OPERATIONAL CHALLENGES
CONSOLIDATION, ACQUISITIONS & MERGERS
CPGS & CHAIN RETAILERS GO OMNI-CHANNEL
NEW CUSTOMER CENTRIC HYBRID MODELS
OUTLOOK: WHAT’S NEXT?
Retail Supply Chain Breakout SessionPooja AgarwalVice President, OperationsBirchbox
Founded in 2010, Birchbox is a leading beauty
and grooming retailer, offering an efficient and
personalized way to discover and shop for
beauty products.
Birchbox
• More than 1M subscribers and 4M customers
• 6 year old company
• Products: Women’s subscription box, Men’s box,
Ecommerce shop & one store front
• 800 beauty/grooming brands
• 1 warehouse in Mt. Juliet, TN
Birchbox Facts
What makes
membership/subscription
different?
1. Volume
2. Customization
3. Consistency
Birchbox
• Consistent growing
base = predictable
growth
• Selective automation is
key
• Strong leverage with
vendors
Volume
• Focus on mass
customization
• Break down contracts
• Build up up-front
automation
Customization
• Regular delivery windows = peaks in fulfillment
• Consistent quality
Consistency
