Beauty Pie is a British membership-based beauty buying club founded by Marcia Kilgore in 2016. The company sells cosmetics, skincare products, fragrances and other beauty products sourced from manufacturers.
History Beauty Pie was founded by Marcia Kilgore in 2016 and launched in the United Kingdom. Kilgore conceived the company after visiting cosmetics manufacturers in Italy and observing the difference between manufacturing costs and retail prices for beauty products.
By 2017, Beauty Pie had signed up more than 10,000 members. In 2020, the company expanded its product range to include supplements and wellness products. In 2021, it raised $100 million in funding.
Business model Beauty Pie operates as a membership-based beauty buying club. Its products are sourced from manufacturers and sold under the company's own label. Members pay a subscription fee in exchange for access to lower prices, while products can also be purchased by non-members at higher prices.
The company's model is based on sourcing products directly from manufacturers and reducing traditional retail markups. At launch, Beauty Pie published breakdowns of costs including manufacturing, packaging, warehousing and product testing.
Beauty Pie's original membership model included monthly spending limits based on the estimated retail value of products. In 2020, industry observers raised concerns that the membership required a relatively high volume of purchases to generate overall savings, while the different membership levels could be confusing to some consumers. The spending cap was calculated using the estimated regular price of products rather than the discounted amount paid by members.
In 2021, Beauty Pie introduced a new membership option that replaced monthly spending limits with an annual spending allowance. By 2022, the company’s membership model was examined in the context of the cost-of-living crisis and consumers cutting back on subscriptions.
References
External links
Official website