Brand owners, look out!

Digital Brands Plant Successful “Subscription Models”

Thomas Reiner | 26.04.2019

When the postman rings the bell, the dog goes crazy. The master or mistress have completed a shipping subscription. This brings the monthly portion of treats and other dog supplies comfortably into house.

The “BarkBox” service is an example of new, digital subscription models that are revolutionizing the US market – and with great success.

With the so-called “Subscription Business” consumers choose a regular delivery of goods of the desired category at desired, regular intervals. The companies then send the consumer their box with a selection of products of the chosen category depending on the selected plan.

There is now a subscription box for almost everything. The offer is ever-increasing and includes cosmetics, groceries, toys, pet supplies, clothing, household goods or health and wellness products.

The reasons for the success: The subscription models serve curiosity, offer surprise and new experiences, convey a sense of community and meet special interests, trump with expertise and support and set a sign for convenience and personalization.

The central component of the subscription box is the packaging. With its individual design, it ensures that delivery and unboxing become an emotional highlight and an experience for subscribers.

Stats:
– Founded in 2012
– First profitable quarter in Q1 / 2017
– Over 95% shopper retention rate
– About 2 million dogs supplied
– Annual revenue forecast for 2018: $ 250 million.