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The rise of the Subscription Box model

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How to conquer the subcom market in 2020.

The popularity of subscriptions box deliveries rose a whopping 25% in 2019 compared to the previous year. This surging eCommerce trend is one that is set to continue in 2020.

 

We’ve gathered the essential insights on what makes the subscription box model so successful in a 5 page downloadable Infographic.

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The rise of Subscription Box Delivery Infographic PDF.

Radical growth

From meal kits to dog food, wine to razors, brands with innovative offers are cutting through into this market.  Food & drink come 1st as most popular with razor & shaving products a close second. The top brands either offer personalised collections of new products on a regular basis or replenish existing items that customers require on a recurring basis. 

 

Food & drink come in at the top with razor & shaving products a close second but it seems almost anything can work as a subscription as long as the service is right.

What makes them popular?

Ultimately subscriptions boxes are satisfying the consumer appetite for convenience and new experiences, however the price tag also has to be right.  45% say price is the reason for subscribing while 43% cite convenience as their reason. 36%  of shoppers subscribe ‘as a treat’. (Royal Mail)

 

McKinsey & Company defined the 3 categories that subscriptions boxes fell into:

 

  • Curation –  collections of new items for customers to sample and use.
  • Replenishment – consistent replacements of the same types of products.
  • Access – allows members to access perks and discounts on items.

 

The subscription box approach offers a customer experience with a heightened feel of personalisation and even exclusivity with the unique interaction with the brand through the unboxing of these curated ‘gifts’, 

Delivering subscription boxes successfully.

70% of online subscription shoppers say they want certainty that their item can be posted through their letterbox. They want a guarantee that their delivery will be successful first time, everytime.

 

We spoke to Gousto in this video about how they manage to deliver over 2 million meals a month with Scurri.

Source for statistics in report: Royal Mail Other sources: Clutch

 

Download Infographic

The rise of Subscription Box Delivery Infographic PDF.

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