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Top 3 trends in the subscription space
While the subscription economy is not new, it has seen significant growth over the past few years. Much of that growth is because brands are learning that consumers are interested in all kinds of subscriptions from the traditional magazine and music type to clothing and even food. Here are three trends helping to grow the space.
"This camp includes those subscriptions that replenish items that people use on a daily basis through passive purchasing models. Dollar Shave Club is one of the most famous of these models. Other examples include the London Sock Company and Amazon's Subscribe and Save program. Instead of going to the store and staring at a multicolored wall of different brands, consumers receive a regular, curated shipment of the things they need," said James Gagliardi, Digital River.
"This camp refers to the experience-driven goods that allow consumers to bypass an annoying or time-consuming process and replace it with an outsourced shopper. The experience-driven subscription often gives the impression that the consumer is receiving a gift -- a "box" that arrives at your door with personally curated goods and some kind of a surprise," said Gagliardi. "Some examples include: Graze, which offers a monthly snack option; StitchFix, which offers a subscription for personalized clothing selections; and Craft Coffee, a monthly subscription that offers gourmet coffees sent right to your door. Subscribing to a "box" allows consumers to access 'an experience'."
"Productivity Enabling" subscriptions
"This camp includes access-based convenience services that make consumers more productive. Abode Creative Cloud, Zipcar and Slack are all examples of services that help consumers save time and work more efficiently," said Gagliardi.
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