THE SUBSCRIPTION MARKET IFA MBA LBM 20-21 Smruti Thakkar
not be affordable to the average consumer and offers it in a more palatable financial fashion, baking the cost into a predictable schedule. Subscription businesses, the subscription model takes something that may
What makes this business model so compelling to consumers at any income level? ● ● ●
Curation : online presence, constant need for the new product /brands, waiting period. Convenience : monthly payment, affordable. Personalization : selection of products by a professional whose services are offered by the company,
ZION STUDY : THE MAIN GLOBAL SUBSCRIPTION MARKETS Global Subscription and Billing Management Market: Regional Analysis
● Retail ● BFSI ● IT and Telecom ● Healthcare
● Media and Ent-ment
● North America ○ The U.S. ● Europe ○ UK ○ France ○ Germany ● Asia Pacific ○ China ○ Japan ○ India ● Latin America ○ Brazil ● The Middle East and Africa
Global Subscription Ecommerce Market (2019–2025) to Attain Market Value of US$ 487.21 Billion by 2025 (13.23 billion in 2018) . The market will be Growing at an Exponential CAGR of 68.0%.
Statistics : 500 businesses using subscription models. ● 70% of business leaders say subscription business models will be key to their prospects in the years ahead. ● The average subscription billing vendor/service is growing 30%–50% annually. ● 53% of senior finance executives say at least 40% of their organizations’ revenues are recurring .
2018 VALUE (€) Global Personal Luxury Goods Market
Global Subscription Ecommerce Market
329,59 billion
13,25 billion
2025 VALUE (€)
Growth in 8 years
427 billion
97,41 billion
478 billion
464,75 billion (16%= 74,36 billion for luxury goods)
Subscription Commerce Subscription commerce allows eCommerce websites to offer regular purchases of a product or group of products. There are essentially two types: Most Popular Categories: 1. Convenience Commerce – Receiving the same products automatically on a repeat purchase basis. 2. Discovery Commerce – Helps consumers discover and sample new products they might not have otherwise known about.
1. 2. 3. 4. 5.
Fashion Beauty Organic Food Eco Products Kids, Craft and Activites
Audi Select One monthly price including: ● ● ● ● ● ● ● ●
2 swaps per month Unlimited mileage Insurance Maintenance 24-7 Roadside assistance Full car detailing with every swap Concierge delivery and retrieval A complimentary 2 day Silvercar rental per month for travel ● Flexible monthly term
Core Collection: Choose from 4 models for $995/month
S5 Coupe, Q7, A5 Cabriolet, A6
Premier Collection: Choose from 8 models for $1,495/month
Opulent Jewelers ● Luxury Jewelry Subscription box valued at $25,000. ● An entire years subscription costing $100,000. ● World’s first-ever subscription box for authentic luxury and designer jewelry. ● Each box is custom created by a personal concierge to suit each clients personal taste. ● The boxes include pieces from brands such as Chanel, Cartier, Bulgari,Louis Vuitton ect. ● Selling of your vintage & exclusive jewells
Opulent Jewelers : Distribution Strategies in France
● Online E-Commerce Site ● Paypal, major credit cards and wire transfers. ● Fast international shipping to France. ● Survey on website for personalization of boxes for clients personal taste. ● Extensive list of brands sold on website : Chanel, Cartier , Gucci ext. ● Customised subscription box starting at $25000 / quarterly ● Style & Brand survey to customise the subscription box. ● Personalised goodies with each box. ● AppSnap to sell your own vintage & exclusive jewellery .
WEAKNESSES
STRENGTHS ● ●
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Consumer Driven approach One stop destination for luxury jewellery
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subscription model businesses can face audits and compliance issues around revenue recognition( received money vs earned money)
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No physical stores
Competitive prices of subscription boxes. Authentic Products Effective communication strategies
THREATS
OPPORTUNITIES ●
Growing use of subscriptions among millennials.
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Competition with Brick & mortar shop and other online luxury markets .
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the rising popularity of online services and increasing internet penetration.
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Limited product segmentation
THANK YOU
Possible brands https://mystylishfrenchbox.com/
https://ouipleasebox.com/?v=3e8d115eb4b3 https://www.forbes.com/sites/forbes-personal-shopper/2020/05/04/best-subscription-boxes-to-give-as-gifts/#727971602f98
OPULENT BOXES https://www.opulentjewelers.com/opulent-box
Links ZION market research https://www.globenewswire.com/news-release/2019/02/13/1724529/0/en/Global-Subscription-And-Billing-Management-Market-Worth-Reach-USD-1 0-5-Billion-By-2025-Zion-Market-Research.html E-commerce
http://www.releasewire.com/press-releases/global-subscription-ecommerce-market-2019-2025-to-attain-market-value-of-us-48721-bill ion-by-2025-growing-at-an-exponential-cagr-of-680-1263639.ht
Global Luxury Market growth
https://www.bain.com/about/media-center/press-releases/2019/spring-global-luxury-report/