Sherel Fernandes -17

MMM 2018-2021 Rukmini Gawde - 21

E-Commerce Assignment Vikram Gupta - 24
Sachin Saple - 89
Brand: FAB BAG
Introduction
FAB BAG – a Beauty platform driven by high-quality beauty products and delightful service. The
brand focuses on beauty enthusiastic women looking for great products that would work for their
specific beauty needs and tastes, but do not have enough time, access or resources to try out and
experience all that is available.

Selection of
superior Deliver the Delight
products aesthetic Beauty fans
across beauty with latest
several experience trends
brands
Current Business Model
• Business Model: Discovery Commerce / Subscription Commerce

• Consumers subscribe periodically to receive 4+ Beauty Samples every month. Products and samples
are delivered in a beauty bag.

• 2 type of customers:
Subscribers who want to discover new products. (B2C)
Brands who want to promote their new/existing products. (B2B)

• Growth model is to drive subscriptions through through influencers and online Marketing.
Subscription Plans Available
Analysis of Current Model
The Subscription Model
• Revenue source: Selling subscriptions

• Customers sign up to periodically receive a products and a beauty bag related to a theme to suit the
season

• Mystery bags: customer receives an assortment of products related to the theme, they haven’t
pre-selected any of them

• Long-term/ongoing subscribers receive their bag of surprise on the first of every month

• Customers subscribing during the month receive the first bag in 15-17 days once the order is placed

• Some samples that go into the monthly sample bags are purchased; while some cosmetic companies
provide them for free as marketing and in exchange for the feedback and promotion.
New Proposal
Beauty Add-ons : Subscribers can add beauty samples to their upcoming beauty bag at
an additional cost - INR 50 for Beauty Samples and INR 100 for a Makeup Sample

Subscribers can add a max of 3 samples in 1 FAB BAG (The weight can be an issue)

This feature can be accessed by logging into the respective profile. For ongoing
subscribers, this feature can be accessed on the 25th of the previous month

The subscriber will get a confirmation email once the payment is complete and the extra
products will be added to the upcoming FAB BAG

The subscriber will get a confirmation email once the payment is complete and the extra
products will be added to the upcoming FAB BAG
Revenue Model
• Each product can be sampled only once, the same subscriber cannot receive a beauty sample twice,
due to this stocks that aren’t sold in a particular month gets piled up and are given as free samples,
Gift with Purchase, during offer periods etc. This is an additional cost to the company.

• Selling these sampled as add-ons can be a good marketing strategy/online business model to
generate revenue from the samples that remain after a particular sampling activity is over. This is a
benefit to the customer and the business since the customer can choose what they want and the
business can earn back the revenue invested + some profit.
Governance
• The customer can login on the 25th of the previous month and choose the add-ons they wish to
receive (FAB BAG’s are shipped towards the end of the previous month so the ongoing subscribers
receive it on the 1st of every month).
• Once the selection process is complete they will be redirected to the payment gateway, once the
payment is processed an order confirmation email along with the details will be sent out to the
registered Email ID.
• The employee from the operations team will add these products to their upcoming FAB BAG Order
and send the file across to the warehouse team who will then ship the order.
• In case of new subscribers/subscription renewals, a pop-up will appear on the checkout page which
will enable customers to select add-ons if they wish, the amount will be added to the cart value, after
the payment is complete these products will be added to their first FAB BAG order.
THANK YOU!