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BizReport : Ecommerce archives : August 29, 2016

Expert: How subscriptions are driving retail

There has been a strong uptick in subscription services in the US over the past couple of years, driven by convenience. As one expert explains, subscriptions are beginning to take hold in the global space, too.

by Kristina Knight

Kristina: What trends are you seeing in the subscription space?

Louis-Vincent LeDoux, Director of Customer Experience, RecurRex: What started the subscription model in the US, the "wow" effect of discovery subscription boxes, is not going to be as big here. In India, the new generation of consumers is looking for convenience. One shouldn't have to go out and purchase commodities like milk again, especially if you're going to be stuck in traffic, to either reach an overcrowded mall or insufficiently supplied BDA complex. The discovery model will still be very interesting for rural India (comprising about 75% of the population) by giving access to some of the brands that are not available at brick and mortar stores.

Kristina: Do you see subscription services as creating a stronger retail economy?

Louis-Vincent: Oh for sure, a better-organized one that is. Transactions will be automated and fine-tuned to optimal consumption patterns to avoid waste, improve cash flow management for both consumers and businesses, and will allow businesses to manage inventory like never before. And while a subscription model business is advantageous regarding financial and operational aspects, the best part has to be how the relationship with clients will evolve. By building the subscription concept into its operations, a business will find it much easier to also build brand loyalty, and get to know customers better so as to target marketing efforts more effectively.

Tags: ecommerce, ecommerce trends, RecurRex, subscription ecommerce

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