Millennial purchasing power has quietly changed the way retailers do business. And to cater to the generation that prioritizes access over ownership, we are seeing a mushrooming number of retail subscription models emerging.
In order to learn what’s new on the horizon we asked several experts to share their favourite retail subscription idea with us.
Check out these fabulous new subscription models that are catching the attention of the industry:
What is the most interesting example of a retail subscription service you have recently come across? Why is it interesting or different?
Director, Zendu Contracting Services Ltd.
(publishers of Retail Technology)
“There are some interesting fashion subscription-based services emerging, like The Chapar. But the most recent innovation for me is in the way Amazon is trying to update how we re-order products through a subscription-based model and the new Amazon Dash button.”
RICH KIZER & GEORGANNE BENDER
“There are more intriguing companies out there, but for us the Honest Company is a stand out. It’s amazing how millennial moms are flocking to this service. Honest Company benefits big time from what we call the Rabbit Effect: One new mom shares the service with her friends, who share it with their friends. Subscriptions and sales multiply. And even if the original mom drops out, the word of mouth has taken on a life of its own. It’s a selling machine!”
Head of Program Office, METRO PROPERTIES
“I enjoy foodist.de – once a month, you receive a box with seven or eight different selected and hand crafted food products. Cafe latte chocolate spread, blue potato chips, creative salad dressings etc. Every box is a surprise, and a great gift, too!”
Manager – Data Analytics and Reporting
Destination XL Group
“Escape Monthly is a destination-inspired monthly delivery of luxury products. Great gift for people who like to travel!”
NICOLE LEINBACH REYHLE
Retail Minded, Founder & Publisher
“The most interesting subscription service I can think of is actually the one I created through RetailMinded.com. We have a program that is referred to as our Partner Program where membership-based organizations use our publication as a membership benefit and educational resource to their members. It’s a paid program that includes distribution of our publication, plus a logo inclusion on our magazine cover. Win-win for everyone.”
Owner, Pampered Teacher
(subscription box for teachers)
“An interesting, new subscription box that I’ve come across is Encourage Play. This monthly box for children, designed to foster social play delivers both a product and a service. The intellectual property that you get is far more valuable for its residual effects, making the experience so much more.”
“No doubt, though slightly biased, (I work for Nordstrom), but Trunk Club by far. If you witness the process and rigors of their business, you’d have to agree.”
Vice President of Conversion at Craftsman Republic
(tech start-up in home improvement)
“CauseBox by Sevenly is an awesome subscription model, giving nearly 15% of the subscription purchase to charity while also bringing cause awareness to charities with limited resources. CauseBox features products that are directly tied to non-profits/charity organizations. By generating new fans for the products featured, CauseBox is a catalyst for ongoing revenue to the charity.”
Executive Vice President & Chief Creative Officer
“The first one that came to mind is MM La Fleur. The aesthetic is elevated. The creative team have luxury fashion backgrounds. Also they deliver a more corporate aesthetic. I think most women don’t mind having someone else put together their clothing for work as it’s not necessarily as fun as shopping for more personal looks.”
“Trunk Club (acquired last year by Nordstrom) is a personal shopping service for guys who hate to shop but want to look good. You get your own rep who learns your style, tastes, sizes, wish list, and budget. Each month, she or he hand picks a selection of shirts, shoes, pants, accessories, etc. each month from hundreds of brands. Keep what you love, return the rest, save your time.”
“I’ve been enjoying my membership to the Dollar Shave Club. They really embrace the concept of membership to their ‘club’. Sure, they are a mail order consumer products company, but they understand the value created by building a relationship and making each customer – or should I say member – feel special.”
CHRIS H.PETERSEN, PHD
Integrated Marketing Solutions, Inc.
“Stitch Fix is a unique online service that provides personal styling and monthly clothing curation for women. Stitch Fix reduces complexity by only sending their members five outfits per month. Curation is based upon feedback from customers as well as trends identified on social media like Pinterest. The member not only gets the convenience of trying things on at home, but input on style, trends and how to coordinate their wardrobe.”
Know any more interesting examples of retailers offering subscriptions services or products? We’d love to hear about it!
Just leave a comment below.