The subscription box business model means that after the seller attracts customers to subscribe to their products, the products are automatically sent to customers every month. A surprise box is a type of subscription box, but before the customer opens the box, it is not clear what products will be in the box. Most consumers choose online shopping for convenience and efficiency.
The main purpose of the subscription box is to improve the lives of customers and treat them with kindness. The subscription box adds a sense of anticipation and adventure to their lives so that they can continuously explore new products and things.
Global Subscription Box Market predicted to grow with a remarkable CAGR during the estimated period, 2019-2027. The massive internet penetration, along with the growth of the e-commerce market across the globe, is expected to promulgate the global Subscription Box market. Young demographics and changing consumer lifestyles seeking convenience products within the minimum timeframe is estimated to fuel the global Subscription Box market. The content in the subscription box has unlimited possibilities, such as new product trials, products that customers have used.
Additionally, changing female shopping preference towards online shopping and augmented influence of social networking platforms on the society are vital factors projected to boost the global subscription box. Urbanization and smart city development have contributed to the changing lifestyle of the millennials generation lead to the growth of the subscription box market in the upcoming periods. Further, the subscription box is catered to women’s lifestyle and needs like period boxes, and hosiery & lingerie subscription boxes are more significant than the actual clothing and fashion category. Besides, advantages of subscription box such as provide users with customized products, and diversifying, and more additional services will influence the global subscription box market.
Increasing number of internet users across the globe has promoted mobile e-commerce worldwide. In the last 3-4 years, the number of Internet users in emerging markets is increasing three times that of developed markets, and digital marketing affects retail spending in emerging markets. In addition to low-threshold smartphone prices, cheaper network data packages, and more sites that are compatible with mobile content have promoted the phenomenon of digital Internet users in developing countries.
The rapid population and economic growth across the world, driving e-commerce growth. The rise in Cross-border e-commerce, along with highly developed e-commerce infrastructure, has impacted the retail e-commerce market worldwide. Further, improvements in infrastructure, and increasing maturity of digital technologies, online transactions in categories such as clothing, electronics, durable goods, food, and grocery may drive rapid online e-Commerce market growth.
Consumers adopting subscription services are getting diversified and more additional services. For example, through Amazon Prime, in addition to purchasing Prime products, members can also enjoy two-day delivery, streaming services. This, in turn, has further stimulated the development of on-demand subscriptions.
Type Segmental Analysis
Based on Type, the global Subscription Box Market categorized into Replenishment Subscription, Curation Subscription, and Access Subscription. The Curation Subscription segment anticipated to dominate the market on account of the benefits of curation subscriptions such as surprise and delight by providing new items or highly personalized experiences in categories such as apparel, beauty, and food.
Replenishment subscription allows consumers to automate the purchase of commodity items and provide financial incentives, such as discounts.
Based on the application, the Global Subscription Box Market classified into Clothing & Fashion, Beauty, Leisure, Food & Beverages, Faith & Spiritual, Furnishing, Pet, Baby Products, Health & Fitness, and Others. The beauty segment projected to exhibit the highest market share in the estimated period due to experiencing explosive demand from the young population who continuously explore new products and things.
Based on Gender, the Global Subscription Box Market bifurcated into Male and females. The Female segment will dominate the market due to the surge in the working female population coupled with the rise in income levels of women across the developing countries. Additionally, the massive demand for online shopping will impact the subscription box market.
Based on geography, the global Subscription Box market segmented into North America, Europe, Asia Pacific, and Middle East & Africa. North America anticipated gaining maximum share in the market owing to the growth in cross-border e-commerce trade in these regions. Additionally, the presence of major subscription providers along with huge demand for online retail subscription services due to its additional features than physical retail stores.
Companies such as IPSY, Blue Apron, Dollar Shave Club, Home Chef, Stitch Box, Hello Fresh, Birchbox, Loot Crat, FabFitFun, eSalon, Bespoke Post, Grove Collaborative, Graze, Sunbasket, and others prominent players are the key players in the Global Subscription Box Market.
The subscription market is estimated to grow with a remarkable CAGR of 70% during the forecast period 2019-2027, with a value of 698 billion at the end.
Several leading industries in this market having their possibilities, but all of them are connected in any way—companies such as IPSY, BLUE APRON, GRAZE SUN BASKET, and so many others.
The estimated time duration to keep a subscription box Is just 3 months. Rest depends upon the consumer; if he likes the product, it can be exceeded, or if not, can leave before three months.
Of course female, the Subscription box is generally created for women’s lifestyle and also to satisfy them by providing their customized product because female has the vast choice in shopping and changes so quickly.
YES, it has the classification into clothing & fashion, leisure, health & fitness, baby product, and others.
The subscription box market helps to boost internet penetration along with the growth of e-commerce across the globe. It also generates traffic in the form of consumers, all with having different choices and tastes.