Fairfax Media is the latest publisher to diversify its offering with a move into sampling services, with the Fairfax owned group, Allure Media injecting some $3 million into the beauty subscription service Bellabox.
Bellabox which now boasts over 40,000 monthly members across Australia and Singapore, will use the capital to expand the service offered for members and brand partners through further customisation, improved targeting and more sophisticated market research.
The deal, which AdNews understands to be a 50.3% stake, will mean Bellabox will have access to Allure Media's lifestyle brands such as Pop Sugar and ShopStyle, as well as advertisers.
Last month AdNews revealed Pacific Magazines beauty subscription service, The Parcel, which is aligned to its Marie Claire brand and plans to launch a similar offer for its Girlfriend title.
Sarah Hamilton, cofounder and CEO of Bellabox said that while the brand always keeps one eye on competitors, the two have different offerings.
“We certainly don't take our position in the market for granted, we definitely do though look at our competitors on a global scale not just locally, we're already looking to improve the service for our brands and members,” she said.
When it comes to partnering with Allure and its advertisers, Hamilton said that while nothing is currently in place, there are plans to offer a real "360 approach" for both brands and advertisers.
“The ideas are there to really realise those synergies Bellabox has with Allure and to become an advertising vehicle,” she said. “Where Allure has a number of brands and advertisers, and also where they can bring new brands into our world, so there can be a full 360 degree campaign from beautiful advertising [in print] through to getting products into the hands of consumers to trial.”
As part of the deal, Jason Scott, CEO of Allure Media, and Guy Reypert, group director of Fairfax Digital Ventures, will join the Bellabox board of directors, effective immediately.
This investment follows a funding push in January 2013 when current investors, Yes To Carrots co-founder Lance Kalish and Trevor Folsom of Elevation Capital and Square Peg Capital bought into the business.
Update: Bellabox would not immediately disclose terms but has since clarified that Fairfax-owned Allure Media paid $6 million for a 50.3% stake in the business. A chunk of that was cashed out by outgoing investors, leaving "well over" $3m to fund growth, according to a spokesperson. That would value Bellabox at around $12m.
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