“That tends to be outside the core competency of media companies, and is harder than they might think going in.” It’s on the backend, where you get into the fulfillment and supply chain stuff, that’s where the complexity is,” said Scot Wingo, executive chairman of ChannelAdvisor, an e-commerce software company.
“Setting up a subscription front end isn’t terribly complicated. Condé Nast itself has been burned in the past, failing to launch the Vogue fashion e-commerce spin-off in 2016. Mucking around in the logistics of e-commerce has been tempting but risky territory for publishers looking to sell products while simultaneously running an editorial business. We think actively about the beauty box as something that lets us reach a new consumer who may not be reading the magazine.” We’re not thinking about our primary media business or advertising-driven models. We call this the space of alternative revenue. It’s on the market, and it aligns with the editorial mission,” said Friedson. “This endeavor, we believe firmly, is future-proofing a brand like Allure. The only thing the company outsources is warehouse fulfillment. In 2016, the majority of the Allure Beauty Box logistics were brought in-house at Condé Nast, including product procurement, brand relations, merchandising, customer data and research insight, customer service, PR and marketing. The Allure Beauty Box has become a key project at owner Condé Nast, as it looks to build out commerce businesses to evolve its revenue streams beyond advertising. Jill Friedson, the vp of marketing across the Condé Nast Beauty Collection, said the current subscriber count was up by 132 percent over this time last year, with revenue up 43 percent over the same period. A few times a year, Allure will partner with a celebrity or influencer to select products, rather than the editors. For June, Allure partnered with tattoo artist Kat Von D for its first full-box “takeover”: Kat Von D selected products from her makeup line, and the box was redesigned for the first time to reflect the brand partnership.Īllure hasn’t shared specific figures around its subscribers for the beauty box since the summer of 2016, when subscribers clocked in at 30,000. One product in every box edition is sponsored, and that’s disclosed in an Allure mini magazine that ships with the box and includes reviews and other information on everything inside. The subscription box costs $15 per month, and subscribers receive five or six products in each that are chosen by Allure editors.
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