by Fırat Demirel on December 15, 2011
Personal care product, cosmetics and perfume industries bear very big opportunities in e-trading world, which is dominated by women and attract both users and investors as a result. Lately the industry has inspired e-trading start-ups as the investment Balerin.com has received, and took it a step further with Markafoni’s sister company MissPera.
As the driving force of the industry increased with “box” model which empowered with Birchbox.com in the US, a second wave of Groupon was created and this wave also hit Turkey.
Following VanilyaClub and LilaKutu, GlossyBox appeared in Turkish market with Rocket Internet and began to add more power to box sector. Now LuxyBox.com is getting ready to take a step into this market.
LuxyBox’s shareholders include İlker Üstüner (45%) and Gökhan Çakır (30%) as major shareholders. And there is a major name among founders/investors, which is Çağlar Erol, founder of Cember.net which was sold for 4.36 million Euros to XING.
Çağlar Erol did take a place in e-trading through private shopping with Jordan-based MarkaVIP , and he owns 10 percent of LuxyBox . The start-up was started with 360 thousand TL fund, and there is Burak Kaya (10%), Selin Çakır (3%) and Meriç Kul, a CVyolla.com founder, (2%) among shareholders.
LuxyBox has sales permit for floral and herbal health products and services, besides beauty and care products. Its business model is similar to Birchbox, which is box model. To remind you of the model, users subscribe to Luxybox for a monthly fee of 19 TL and are sent trial packages of selected cosmetics products in an exclusive box each month.
The service gives discounts on shopping with LuxyPara, and will actively work on content side. LuxyBox has not actively started to offer its services, but when it is ready, it will enable its users to keep write their own blogs and share their experiences with other users, besides a section for info, including recommended products and sources.
I already knew that Çağlar Erol was thinking of taking a step into group shopping market, but as he has changed his mind, I can say that he is not afraid to invest in different e-trading start-ups.
It seems that there will be new developments and investment news in online cosmetics and personal care product sector, as it has been in online shoe market. Also, there will probably a boom in Birchbox, box model, as it also did in group shopping, or namely Groupon business model.