Boxed Thinks Pink with New Pricing Strategy

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Boxed Thinks Pink with New Pricing Strategy


Boxed said it was taking a stand on the so-called “pink tax” on certain women’s products in a move designed to generate awareness and encourage usage with female shoppers. The three-year-old company said it was taking a powerful stand against what it called a luxury tax on feminine hygiene products and gender price-gouging on everyday items including body wash, deodorant, razors, and shave gel, by lowering prices on these items for consumers. The company said it hoped its actions would encourage other retailers to do the same and that it was incurring the cost to change the prices. Boxed stopped short of disclosing the financial impact of its actions or the number of products involved, but said it would take a hit on margins to correct gender pricing wrongs.

"Our team took a hard look at some of the products offered on Boxed and realized that many female products cost significantly more than their male equivalents on a per-ounce or per-unit basis, and in some states feminine products are charged a luxury tax," said Boxed CEO and founder Chieh Huang. "This just didn't make sense to our team, and when it was brought to senior management's attention, we immediately decided this was an issue we wanted to help bring to the forefront and take action."

The company cited a New York City Department of Consumer Affairs study which shows that women pay 13 percent more for personal care products.
"Based on our research, on average, per ounce or per unit, women are paying 108 percent more for razors; 10 percent more for body wash; 8 percent more for deodorant and 5 percent more for shaving gel," said Nitasha Mehta, associate director of re-engagement marketing at Boxed.
The margin-eroding move comes just months after Naeem Ishaq joined the company as CFO on July 1. Ishaq previously served as head of finance, strategy and risk as mobile financial service provider Square. He also held finance roles at Intel and Salesforce.
"Naeem's extensive experience in the mobile-based tech space will be a major asset to us as we continue to add seasoned veterans who have operated companies at scale,” Huang said.
Boxed bills itself as the most convenient way to shop for groceries and household products in bulk at the lowest prices, with free delivery and no membership fees. The company fulfills orders from distribution centers in New Jersey, Las Vegas and Atlanta.
Mike Troy