Dive Brief:

• Ipsy and BoxyCharm are uniting under the Ipsy brand to offer one beauty membership to customers, according to a Thursday press release. They previously operated as separate businesses under the same parent company. 
• The company will now offer four subscription options: Glam Bag, BoxyCharm by Ipsy, Icon Box and Refreshments. The subscriptions range from sample-size products and full-size items to sustainable brands and celebrity-curated product assortments.
• The company will also introduce events with exclusive products; Power Picks, which provides in-demand products and brands in each box; and Beauty Boost, which offers premium items for select members.

Dive Insight:

Ipsy combined the two subscription services in response to the pandemic, which disrupted global supply chains, changed consumer habits, created challenges with finding new customers and other issues. By bringing the two subsidiaries together and incorporating products from both portfolios, the company said it could better serve its customers. 

“BoxyCharm brings a trend-forward curated approach to merchandise, a community of die-hard beauty fans, and a robust commerce experience with the best deals. Ipsy leverages proprietary AI technology that matches millions of members with products personalized for them coupled with a unique customization model where members can choose more products and add-on items that ship with their monthly box or bag,” Jenna Habayeb, Ipsy’s chief marketing officer, said in a statement. “Each of these elements have made our individual brands compelling and unique, but now all of our members will get access to them, which is where we think the real magic happens.”

Though the company has had to adjust amid shifting market conditions, its parent company, Beauty for all Industries, still managed to raise $96 million from TPG Growth last year. The company said it planned to use the capital to enhance its technology, expand more into brick-and-mortar and bring its direct-to-consumer brands into international markets.

Prior to raising money for its expansion, the brand has expanded its product assortment and committed to supporting Black-owned brands. In January 2021, the company said it would invest $7 million to promote and cultivate Black-owned beauty companies. Later that month, the brand also debuted its Refreshments brand featuring vegan and cruelty-free items made without parabens, phthalates, sulfates and nut allergens.