Coziness as a business model: how Kyiv-based Instagram shop My.cozybox sells corporate gifts in 50 countries

On the idea

From 2006 to 2013, I was building my career as a marketer, but I took a break for maternity leave. When my daughter started school, the question arose whether to return to employment or create my own business. The idea came unexpectedly while I was looking for gifts for my daughter’s caretakers, teachers, and coaches, always aiming for them to convey my thoughtfulness. After receiving a gift, one teacher said, “Tetiana, you have a real talent for making inspiring gifts,” which prompted me to turn my hobby into a business. My brand, My.cozybox, appeared at the end of 2020. I registered as a sole proprietor (FOP), filed trademark documents, and launched the first line of gift boxes on Instagram.

On the first steps

For over six months, I simply tested the demand, buying two units of each product and combining them to create different box options. The first Instagram post was published on December 31, 2020, but the first sale didn’t happen until August 2021. I wanted to test different options and study the audience before the new holiday season.

Sales grew from one gift a week starting in September 2021 to shipping 30 boxes daily by the New Year. Throughout the first year, I reinvested the money earned, increasing volumes and expanding the product range.

My experience as a marketer provided a significant advantage over other online entrepreneurs in the gift segment, helping create a recognizable style, build customer communication, and present the product. Together with a photographer, we created the brand’s visual identity in the Hygge style, conveying a mood of comfort and well-being, which helped My.cozybox find its audience.

On differentiation

I deliberately refused to use mass-market products, instead seeking out Ukrainian craftspeople who could create unique, heartfelt items.

We probably were among the first ones to introduce the knitted sweater for a mug, which became trendy. We later developed the idea of tea in test tubes, patented the packaging, and orders for them quickly grew into the thousands.

This “magnet product,” which cost $31, generated the brand’s first working capital. In 2021, one of the first popular boxes—consisting of a scarf, a candle, artisanal candies, a mug with a sweater, a garland, and a wooden box—cost $43.

On consumer priorities

I planned to build My.cozybox on the idea of conscious consumption, using eco-paper and natural materials instead of plastic or bubble wrap. However, an Instagram survey showed 80% of followers weren’t willing to pay even 50 UAH more for that instead of regular packaging. So I concluded that consumers may declare different things but ultimately buy based on emotion and value, and decided the brand should grow first, making sustainability a pleasant bonus later, not the main purchasing argument.

On small business on Instagram

Launching on Instagram was simpler five years ago; now, starting from scratch is harder because algorithms favor older accounts. Targeted ads are most effective during holiday periods (fall and before the New Year), while collaborations with creators are better in the spring and summer. One collaboration, for instance, resulted in up to 60 orders in just a few days.

Currently, consistency and micro-content yield results. Instagram algorithms favor regularity: even three posts a week and daily stories consistently boost reach. User-generated content, where clients share their impressions or unboxings, works well, as do collaborative posts with micro-bloggers. The goal is to build a loyal, emotionally responsive community rather than just chasing subscriber numbers. A practical tip for advertising accounts is to ensure the linked card has funds, as failed withdrawal attempts can negatively affect the algorithms.

On the full-scale invasion

This was the riskiest moment for the business. Right before Russia’s full-scale invasion of Ukraine, we invested all our working capital in pre-orders for handmade items. By April 2022, clients began contacting us to place orders, and we resumed operations.

Many people who moved abroad ordered gifts for relatives in Ukraine to support and comfort them. However, a sharp decline was observed starting in August 2022 due to emigration and decreased purchasing power. Sales plummeted, leading the company to concentrate exclusively on corporate clients.

On clients

One year deep into operation, I clearly noted the difference between retail and corporate audiences. Retail clients typically seek more affordable options, which I find encouraging as Ukrainians began buying gifts not just for holidays, but simply to please someone.

However, corporate clients became the brand’s driving force. The company began working in the B2B direction in 2022, despite the war. By 2023, regular customers were requesting more expensive gift sets, starting at $200, prompting the brand to create premium gifts. This acknowledges that the giver wants to appear thoughtful and tasteful, and the recipient should feel the set was made specifically for them.

The business gradually expanded beyond online: from 2022, we participated in exhibitions and markets like Vsi. Svoi, collaborated on industry events, and later partnered with film festivals and exhibitions for HR professionals.

On the B2B segment

The brand essentially had no competitors in the Ukrainian B2B segment, which mostly featured outdated options like 1990s-style globe-bars or book-safes. My.cozybox became one of the first in the country to offer stylish, modern gifts. Examples include a bottle that looks ordinary but conceals a bartender’s kit inside, and our newest item—chocolate pine cones (soaked in syrup, coated in chocolate, and turned into candies).

For corporate orders, all boxes are made to order. If the cost is too high, we adjust the contents by replacing or removing elements without disrupting the overall style. Work with corporate clients is governed by a clear contract specifying everything, down to the ribbon color. Accuracy is critical for these customers—colors, logos, and packaging must meet their standards. The visual concept is always approved before production to avoid errors.

On export

We began exporting in 2023, starting with the B2C segment when a few clients requested shipments to Poland and Portugal. Announcing international shipping on Instagram led to a sharp increase in requests, primarily from relocated Ukrainian companies wanting to congratulate employees living abroad.

Now we work with clients worldwide. Last year, for example, we made gifts for the Ukrainian branch of the UN and sent boxes to 50 of their representative offices globally. Before each shipment, we calculate the delivery cost via Nova Poshta, and gather recipients’ contact information for maximum precision.

In 2024, exports already accounted for about 70% of all our sales. While many companies avoid international shipping due to complex customs regulations, My.cozybox adapts the contents to each country’s requirements: restrictions may include tea, alcohol, sharp objects (like a bartender’s kit), or sweets with a short shelf life. The box contents sometimes need multiple changes, so two versions are prepared: with and without gastronomic elements.

On average, one order contains 100–150 boxes. These international projects are logistically complex but yield good results and help the brand grow abroad.

On logistics

Gifts are delivered via Nova Poshta worldwide—from Australia to the USA. Parcels typically arrive in about two weeks, though the timeframe can extend up to a month at year-end.

Previously, approximately 20% of shipments were damaged upon unboxing, and it was impossible to prove this after the quick handover by the courier. Now, we always remind our clients to check the parcel in the presence of the courier or directly at the branch upon receipt, as Nova Poshta is not responsible for the state of the parcel after the handover. Despite this, there is currently no alternative reliable carrier; by comparison, Ukrposhta once delivered a package within Kyiv for almost a week, while Nova Poshta does it on the same day.

On lead times

Fulfillment time depends on the complexity of the order. A current order for 100 wooden suitcases takes the artisan about a month to produce. Simple craft boxes already in stock, which only need branding, take about a week.

Complex projects can take us several months to assemble. For example, a project for Schwarzkopf required producing silicone thermal mats, which involved first developing the mold, then casting the product at a factory, and organizing the logistics.

On the assortment

The packaging and contents of the boxes depend on the customer. Options include wooden suitcases, designer boxes, or craft packaging. We also make wooden cachepots for open arrangements.

We approach every order creatively. For the UN, for example, we created a set in traditional Ukrainian aesthetics: a motanka doll, a Slovyansk ceramic mug in a sweater, a Borodianka rooster candle, wooden snowflake-shaped coasters, and a Christmas tree ornament with authentic New Year’s themes.

Prices depend on complexity, ranging from the most affordable box at $14 to the most expensive at $200. The latter was a set with custom-made porcelain angels and a whiskey tasting kit.

The assortment includes candles, perfumes, aroma diffusers, wooden goods (from Christmas tree ornaments to spoons and plates), and textiles (scarves, sleep masks, as well as branded aprons with prints). We have about 300 samples in stock to select the best artistic solutions for each client.