Retail Highlight – Growth in Subscription Box Services set to explode.
With the traditional retail sector on its knees, the rise in subscription box services is unprecedented with a market that is set to grow 70% over the next few years with a financial forecast to reach £1bn in value by 2022. That’s a whopping 72% increase from value in 2017. Where else in retail is such potential to be found?
Subscription box services has become the darling of the retail sector with start-ups and newcomers building successful brands in areas such as vitamins and supplements, craft kits, confectionery, spectacles, shaving kits, beauty, and household products, not to mention the growth in cook-your-own meal subscriptions. As of February 2019, 27.5% of the British population signed up to a subscription box service.
This retail explosion of a new way of shopping was in part driven by Covid-19 and lockdowns which has had such a devastating sector on the traditional retail sector, but forecasters are predicting that this trend will continue as customers are feeling the benefits of subscription shopping. Subscriptions help customers budget month-on-month and it is of course a highly convenient way of receiving goods that we use on a regular basis. Take coffee for instance. The growth in subscription-based coffee services has taken the retail world by storm, to the point that many leading coffee machine suppliers are giving away the machines for free, when customers sign up for a yearly subscription of their favourite coffees. One of the hidden and unsuspected benefits of a subscription service to consumers is that it provides a sense of routine, and one of the many consumer insights to emerge from the effects of lockdown is the appreciation and need for a routine, whether this be daily exercise, checking in on friends and loved ones, or gathering together for a family meal. This need for routine could well stay with us going forward.
Retailers are reaping the benefits.
The benefits to retailers of running a subscription box service are numerous, but high on the list is that it offers a predictable revenue stream, and it allows for more accurate product forecasting, so inventory strategies can be adapted accordingly.
The decrease in traditional retail footfall is set to continue as we still endure the restrictions of lockdown. But can anyone predict whether it will return to the halcyon days of retail shopping? One only must look at the decimation of the high street, the silence of the shopping centre to know that it will be a long haul back.
The established brands, the daring start-ups and the emerging stars of retail have all demonstrated their agility to move with the market, spot opportunities and exploit trends and we believe it is these who will emerge stronger.
What is the biggest challenge facing a subscription box service?
Undoubtedly order fulfilment. Without an experienced, expert, and professional order fulfilment service, a subscription box service will suffer and could well die because of poor customer service.
What does the best order fulfilment service look like?
- A service that is bespoke to the requirements of the brand and products (one-size doesn’t fit all).
- Efficient order processing with same-day despatch.
- Real-time inventory reporting.
- An efficient returns management system that optimises product value.
- Integration with leading e-commerce platforms.
- Unparalleled pick and pack service with quality control procedures at every stage.
- Standard or branded packaging service available.
- Discounted postage and shipping rates.
- Efficient warehouse storage with ample room for growing brands to scale.
- Dedicated account management team committed to protecting your brand.
- An order fulfilment company that is agile and flexible to cope with peaks and troughs.
How can the Adstral order fulfilment service help your brand?
We believe that ‘your brand is our brand’ and our experienced team takes the utmost care with your products and service from the moment you start working with us, because it is this approach that sees us work with leading brands and long-standing customers who trust us to provide their customers with the best fulfilment service.
The first stage in working together is for us to conduct an in-depth needs analysis to ensure that we tailor a service that meets your exact needs today, with the flexibility to grow tomorrow.
We are by your side during the transition period – which can be stressful, but our experienced planning process, keeps stress to a minimum.
We set up quickly and seamlessly and provide all the training you and your staff need, and our friendly team is always on hand to assist where necessary.
We agree a level of service delivery and we invest our team and expertise to ensure that we meet your targets.
Take the first step to a better order fulfilment service.
Ring us for an informal chat about your order fulfilment needs on +44 (0) 1793 725043.
Fill out our Enquiry Form and we’ll get back to you quickly.
Find all the information you need by going to our website HERE.