Ipsy Case Analysis
Back in 2007, Michelle Phan started filming videos in her bedroom about how she applied her makeup and uploaded them onto YouTube, unaware that this would be the start of something revolutionary for the makeup industry. Michelle now has over 8 million subscribers on her YouTube channel, and continues to upload makeup tutorials on a weekly basis. Phan’s successful career on social media allowed her to open up her own business, called Ipsy. Ipsy is a cosmetic subscription service that sends out ‘Glam Bags’ once a month with personalized makeup and skincare products. The fee is $10/month and you receive about 4 to 5 products collectively valuing more than what you pay. The products in the bags are given to Ipsy for free by companies looking
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Ipsy’s owes its success partially to the network they have created. Last May, Ipsy opened up a 10,000 sq. foot studio with professional camera and lighting equipment and props for their network of beauty vloggers to use. They have a very large network of over 10,000 amateur beauty vloggers. These networkers are asked to create a couple videos a month featuring Ipsy and the products received in their Glam Bags. They aren’t tied to any contracts, and they have access to the Ipsy studios for filming promotional videos, mentoring, and publicity opportunities. All of these content creators together generate over 300 million hits over Ipsy’s social media platforms. Ipsy is working in the direction that the cosmetic industry is heading towards. Many women, especially millennials, don’t shop and get makeup advice at department store counters such as Mac, Estee Lauder, Bobbi Brown, or Clinique like they used to. Nowadays, they go to YouTube to learn DIY projects and about new trends. This benefits Ipsy because they network through the Internet. In a recent study by Defy Media, it was found that more than 60% of 13 to 24 year olds would purchase and try a products recommended by a
Ipsy’s owes its success partially to the network they have created. Last May, Ipsy opened up a 10,000 sq. foot studio with professional camera and lighting equipment and props for their network of beauty vloggers to use. They have a very large network of over 10,000 amateur beauty vloggers. These networkers are asked to create a couple videos a month featuring Ipsy and the products received in their Glam Bags. They aren’t tied to any contracts, and they have access to the Ipsy studios for filming promotional videos, mentoring, and publicity opportunities. All of these content creators together generate over 300 million hits over Ipsy’s social media platforms. Ipsy is working in the direction that the cosmetic industry is heading towards. Many women, especially millennials, don’t shop and get makeup advice at department store counters such as Mac, Estee Lauder, Bobbi Brown, or Clinique like they used to. Nowadays, they go to YouTube to learn DIY projects and about new trends. This benefits Ipsy because they network through the Internet. In a recent study by Defy Media, it was found that more than 60% of 13 to 24 year olds would purchase and try a products recommended by a