{"id":4382442,"date":"2021-06-11T11:56:30","date_gmt":"2021-06-11T09:56:30","guid":{"rendered":"https:\/\/www.deptagency.com\/insight\/the-rising-power-of-subscription-services\/"},"modified":"2025-12-08T13:42:27","modified_gmt":"2025-12-08T11:42:27","slug":"the-rising-power-of-subscription-services","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-in\/insight\/the-rising-power-of-subscription-services\/","title":{"rendered":"The rising power of subscription services"},"content":{"rendered":"
\n\t\n\t<\/svg>\n\t\t\t\n\t\t\tBack to all articles\t\t<\/span>\n\t\n<\/button>\n\t\tThe rising power of subscription services\t<\/h1>\n\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/picture>\n\t\n\t<\/div>
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\n\t\tAlexandra Moorhouse\t\t
\n\t\tMarketing Director, UK&I\n\t\t\t<\/div>\n<\/div>\n\t
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\n\t\t\t\t\t11 June 2021\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n<\/div>\n\n
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\n\t\t\t\t\n\n\t\tThe subscription economy is booming, in tandem with a rise in e-commerce demand. From hygiene products to software,\u00a0 speciality foods to streaming services, subscriptions are available for just about anything.\t<\/h2>\n\n\n\t\tSubscription-based companies<\/a>\u00a0like Birchbox, Hello Fresh, Dollar Shave Club and StitchFix, among many others, have grown more than 300% over the past seven years, and are outpacing the S&P 500 in overall percentage revenue growth by 5X. With all of the changes occurring in commerce, the digital-first approach to commerce has been the catalyst for success of subscription-based models. Subscription businesses have adapted to mobile and social commerce far faster than traditional retailers, which has resonated with their core demographic.\t<\/p>\n\n\n\t\tBut standalone subscription-based companies aren\u2019t the only ones contributing to this movement in retail; the ongoing COVID-19 pandemic has changed the way we shop, with customers flocking to the internet for everyday items they\u2019d usually purchase in-store. As consumer behaviour rapidly shifted, industries within fast-moving consumer goods (FMCG) saw spikes in traffic and orders, putting a strain on supply chains, logistics, and website performance across the globe. In many cases, subscription services entered households as an assured way to replenish commodity items with automated purchases, avoiding sold out signs and online queues.\t<\/p>\n\n\n\t\tWithin the last year, manufacturers have increasingly launched direct-to-consumer (DTC) models, opening up new revenue streams in a challenging commercial environment. Almost half (48%) of British manufacturers are already building channels to support the strategy and the vast majority\u00a0(87%) see DTC as relevant to their products and consumers<\/a>. Adding a subscription service into a new DTC offering is a great strategy, although giving customers the ability to auto-replenish won\u2019t just sell itself. Businesses need to understand their new B2C customers and develop a mutually value-driven relationship. Let\u2019s take a look at the different ways of achieving this:\t<\/p>\n\n