In April 2017, companies offering subscription box services received 37 million visitors. If you compare this number to 2014 figures, this represents a growth of 800%. A subscription box business usually sends you a package, ranging from once to twice a month with items that they pick out for you.
Below are the top subscription box businesses from Hitwise.
Many companies in this graph sell beauty, food, fandom or random niche products. As the graph shows, a subscription-based model can be successful in a wide and diverse range of product categories. Success in the subscription market doesn't just depend on your product category, simply put, it's just a new way or selling products. You must still focus on your value proposition. If your curious on the benefits, read about the positives and negatives of subscription-based models.
While almost any product category can succeed in a subscription model, there are some dominant product categories within the market. Dominant categories include food and drink, beauty and grooming, clothing and lifestyle products or services.
Image courtesy of Hitwise
Why are subscription based businesses growing so much?
The current retail environment is changing, consumers are beginning to value convenience more than ever. With the ever growing presence of technology, this need is becoming easier for businesses to fulfil. From the consumers' viewpoint, a subscription service takes away any time or energy commitment in purchasing.
Read about the insights into the consumer benefits of subscription business models to understand where your business may fit into this market.
With regards to boxes, the unknown element to what consumers receive is exciting. Forbes state that this growth is a result of getting consumers excited, 'you have to offer something they're not expecting and subscriptions are an ideal instrument for a surprise.'
Whatever the reason is, the growth is undeniable. Have you considered implementing a subscription element to your business? Check out subscription website builder to test your idea and begin your subscription-based budiness model adventure!