Product Code: UMME19150
The major focus areas considered while analyzing and defining the penetration of subscription e-commerce includes application segment (beauty and personal care, food and beverage, clothing and fashion, healthcare and fitness and entertainment), end-user segment (women, men and kids) and payment mode segment (online and offline). In 2018, the beauty and personal care application dominated the global subscription e-commerce market with the maximum share of 29.6% in terms of value. Growing demand for glam, convenience as well as number of players flocking themselves into beauty arena would help the segment to grow at a faster rate of 67.2% during the forecast period (2019-2025). However, with the strengthening ecommerce and surging trend of online shopping, other areas such as clothing and fashion, food and beverage, healthcare and fitness and entertainment are also anticipated to register highest CAGR over the forecast period.
Subscription boxes or subscription based business model refers to a recurring delivery of products as part of a marketing strategy and a method of product distribution. With a target to cater to wide range of customers portfolio with their specific needs and specifications, it is estimated to continue its double-digit growth in years to come. It has been further estimated that that there are 400 to 600 different kinds of subscription boxes in the United States alone and more overseas. They aim to facilitate the consumers with an easy, personalized and cheap way to purchase their products as per their requirements. Moreover, increased exposure to new products in different applications ranging from beauty and apparel to toys, books and pet food has significantly supported huge consumer base to discover optimal products for their preferences and needs. Although being at nascent stage as well as being a niche segment of ecommerce domain, it is anticipated to capture sizeable chunk of ecommerce market.
Subscription e-commerce business has been booming owing to several factors apart from convenience and cost efficiency. It has been observed that more than 12% of the existing online shoppers have signed up for one or more subscription services. Modern lifestyles and changing consumer behavior, as well as accelerating disposable income and the assurance to deliver quality services thereby leading to positive user experience has tremendously flourished the market potential in recent years. Moreover, proliferation of internet services and smartphone penetration coupled with augmenting working population has substantially catalyzed the market performance of subscription business across the globe. Considerable rise in venture capital investments along with surging number of visits has proliferated the industry growth. Furthermore, as the subscription-based business models have become a part of everyday life for consumers, curation-based subscription boxes comprising clothes, beauty products are the most popular kind of subscriptions. Curation boxes purpose to surprise the consumer with individualized experiences in diverse categories such as food, apparel, beauty and others. To add on, surging technological advancements and burgeoning demands for online shopping, software applications and providers have also enabled the consumers to delay, modify, scale up or scale down their subscription orders. However, overbuying issues, privacy and security concerns, unclear value, unclear return policies tend to hinder the market growth.
Moreover, in 2018, women subscribers held a prominent share of 55.8%, followed by men and kids' subscribers. The women subscription e-commerce market at global scale was valued at US$ 7.39 billion in 2018 and is projected to witness astonishing CAGR of 66.1% during the forecast period. In addition, men subscribers held around 29.9% market share in the respective market on account of surging demand of products such as razors, shaving creams and other men grooming products over the years. Hence, the segment garnered revenue of US$ 3.97 billion in 2018. While online mode of payment captured the lead share of 69.6% during 2018 attributed to surging government initiatives in terms of cashless economy and rapid digitization.
To conclude, subscription e-commerce business has been growing at a very accelerating pace due to growing number of consumers signing up for various subscription services. It has been observed that the market size as well adoption rates are reaching all-time highs. Ranging from beauty products to health care and fitness subscription kits to pet food, the subscription-based services aim to offer end to end solutions to the end users. Global subscription e-commerce market generated revenue of US$ 13.23 billion in 2018 and is expected to reach US$ 478.21 billion by 2025 experiencing robust CAGR of 68.0% over the forecast period (2019-2025).
Also, for better understanding of subscription e-commerce market, detailed analysis has been conducted for different regions along with their countries including North America (US), Europe (UK, France, Nordics), Asia Pacific (China, India, Japan), and rest of the world. The Rest of world includes regions such as Latin America and Middle East. Based on the estimation, North America dominated the global subscription e-commerce market, accounting for revenue share of 67.99% in 2018. On account of majority of subscription-based companies being in North America and huge awareness among the developed countries such as United States about the subscription-based services has significantly fostered the regional market.
Numerous companies have earmarked their presence in the global subscription e-commerce market and continue to focus on business expansions, product expansions, surging investments and collaborations, for instance, Ipsy, Birchbox, Dollar Shave Club, Stitch Fix, Hello Fresh, Blue Apron to name a few. They continue to offer wide range of subscription boxes that cater to consumer needs and specifications in various domains that further resulted in escalating visits on subscription websites. Furthermore, emergence of various startups in beauty and personal care, healthcare and fitness domain along with growing demand for creative subscription boxes for kids has further influenced the market growth. With an objective to stimulate the signups for subscription boxes across the developing nations and developed nations, these players have adopted various strategies to enhance the penetration of such business model. Some of the major players operating in the global subscription e-commerce market include Dollar Shave Club, Inc., Blue Apron Holding Inc, Personalized Beauty Discovery, Inc. (Ipsy), Hello Fresh, EdgeWell Personal Care (Harry's), PetSmart, Inc., Netflix, Flintobox, Nature Delivered Ltd (Graze) and The Walt Disney Company.
Global subscription e-commerce Market was valued at US$ 13.23 billion in 2018 and is expected to grow at a CAGR of 68% during the forecast period 2019-2025, to reach a market size of US$ 478.21 billion by 2025. North America dominated the market, with 67.99% share in 2018. However, Asia-Pacific is expected to witness highest CAGR growth of 75.9% during the analyzed period.
Table of Contents
1. MARKET INTRODUCTION
- 1.1 Market Definition
- 1.2 Objective of the Study
- 1.3 Limitation
- 1.4 Stakeholders
- 1.5 Currency used in the Report
- 1.6 Scope of the Global Subscription E-commerce Market Study
2. RESEARCH METHODOLOGY OR ASSUMPTION
- 2.1 Research Methodology for Global Subscription E-commerce Market Study
- 2.1.1 Main objective of the Subscription E-commerce Market Study
3. INDUSTRY PERFORMANCE
4. EXECUTIVE SUMMARY
5. MARKET OVERVIEW
- 5.1 Introduction
- 5.2 Market Dynamics - Market Trend & Drivers
- 5.2.1 Modern Lifestyles
- 5.2.2 Augmenting Young and Working Population
- 5.2.3 Proliferation of Internet Services and Mobile Applications
- 5.2.4 Accelerating Disposable Income
- 5.3 Market Challenges
- 5.3.1 High Churn Rates
- 5.3.2 Unclear Disclosure of Billing Practices
- 5.4 Market Opportunities
- 5.4.1 Lays Huge Room for Growth for Digital Beauty
6. LEGAL & REGULATORY FRAMEWORK
- 6.1 General Overview
- 6.1.1 Important Rules and Regulations Imposed on Subscription E-Commerce Business:
- 6.1.1.1 Terms and Conditions may not even be enforceable
- 6.1.1.2 Clear Disclosure of Auto Renewal and Subscription Policies
- 6.1.1.3 Simple Way to Handle Subscription Cancellations
- 6.1.1.4 Pricing Error Procedures
- 6.1.1.5 Delayed, Lost or Damaged Shipments
- 6.1.1.6 Refunds, Exchanges, Returns
- 6.1.1.7 Quantity Limits
- 6.1.1.8 Member Eligibility Restrictions
7. SUBSCRIPTION BOX SHIPPING SERVICES
- 7.1 General Overview
- 7.1.1 Shipping Services with United States Postal Service (USPS)
- 7.1.2 Shipping Services with UPS
- 7.1.3 Shipping Services with FedEx
- 7.1.4 Shipping Services with DHL
- 7.1.5 Evaluation of Shipping Carriers
8. PRICING MODEL
- 8.1 General Overview
- 8.1.1 Type of Subscription Based models
- 8.1.2 Parameters to Adopt Optimal Pricing Strategy if starting a Subscription Based Services
- 8.1.3 Customer Perception
9. USED CASE STUDY OF SUBSCRIPTION E-COMMERCE MARKET
- 9.1 General Overview
- 9.2 Case Study: Pact Coffee
- 9.2.1 Pact Coffee looked to capitalise on UK coffee consumption trends:
- 9.2.2 Customer acquisition was the biggest initial challenge
- 9.2.3 Letterbox delivery is a key component of the Pact Coffee proposition
- 9.2.4 Managing its growing scale has been the most pressing demand more recently
- 9.2.5 High quality customer service is important when it comes to delivery partners
- 9.3 Case Study: Vegan Tuck Box
- 9.3.1 Vegan Tuck Box aims to make it easier to buy vegan snacks
- 9.3.2 Vegan Tuck Box faced operational challenges early on Finance, Infrastructural Issues and Investments
- 9.3.3 Benefitted from its growing scale that led to Infrastructural Development
- 9.3.4 Vegan Tuck Box has looked to differentiate through its product assortment
- 9.3.5 Minimising churn rate is one of the key challenges for Vegan Tuck Box
- 9.3.6 The company has had to respond to customer delivery demands
- 9.3.7 The company has pursued a varied marketing strategy
- 9.3.8 Having access to a good support system has been an advantage of working with Royal Mail
10. DEMAND AND SUPPLY SIDE ANALYSIS
- 10.1 General Overview
- 10.1.1 Demand Side Analysis
- 10.1.2 Supply Side Analysis
- 10.1.2.1 Top Partnerships
- 10.1.2.2 Top Mergers& Acquisitions
- 10.1.2.3 Top Funding
- 10.1.2.4 Top Business Expansion
- 10.1.2.5 Top Product Launches
- 10.1.2.6 Top Start ups in Subscription E-commerce Industry
11. WORKING MODEL OF SUBSCRIPTION E-COMMERCE INDUSTRY
- 11.1 General Overview
- 11.1.1 Categorization of Subscription models
- 11.1.2 Other featured offerings of Subscription based companies
- 11.1.3 Business Models of Major Subscription Based Company
- 11.1.3.1 Netflix
- 11.1.3.2 Birchbox
- 11.1.3.3 Ipsy
12. VALUE CHAIN ANALYSIS
13. MARKET INSIGHTS BY APPLICATION
- 13.1 General Overview
- 13.2 Beauty and Personal Care
- 13.3 Food and Beverage
- 13.4 Clothing and Fashion
- 13.5 Entertainment
- 13.6 Health and Fitness
- 13.7 Other Applications
14. MARKET INSIGHTS BY END USERS
- 14.1 General Overview
- 14.1.1 Women Subscribers
- 14.1.2 Men Subscribers
- 14.1.3 Kids Subscribers
15. MARKET INSIGHTS, BY PAYMENT MODE (2018-2025)
- 15.1 General Overview
- 15.1.1 Online Payment Mode
- 15.1.2 Offline Payment Mode
16. MARKET INSIGHTS BY REGION
- 16.1 General Overview
- 16.2 North America Subscription E-commerce Market (2018-2025)
- 16.2.1 United States Subscription E-commerce Market (2018-2025)
- 16.2.2 Rest of North America Subscription E-commerce Market (2018-2025)
- 16.3 Europe Subscription E-commerce Market (2018-2025)
- 16.3.1 United Kingdom Subscription E-commerce Market (2018-2025)
- 16.3.2 France Subscription E-commerce Market (2018-2025)
- 16.3.3 Nordics Subscription E-commerce Market (2018-2025)
- 16.3.4 Rest of Europe Subscription E-commerce Market (2018-2025)
- 16.4 Asia Pacific Subscription E-commerce Market (2018-2025)
- 16.4.1 China Subscription E-commerce Market (2018-2025)
- 16.4.2 Japan Subscription E-commerce Market (2018-2025)
- 16.4.3 India Subscription E-commerce Market (2018-2025)
- 16.4.3.1 List of Companies offering Subscription Boxes in India
- 16.4.4 Rest of Asia Pacific Subscription E-commerce Market (2018-2025)
- 16.5 Rest of World Subscription E-commerce Market (2018-2025)
17. COMPETITIVE SCENARIO
- 17.1 Porter's Five forces analysis
- 17.1.1 Bargaining power of Supplier
- 17.1.2 Bargaining power of Buyer
- 17.1.3 Industry Rivalry
- 17.1.4 Availability of Substitute
- 17.1.5 Threat of new Entrants
- 17.2 Competitive Landscape
18. TOP COMPANY PROFILES
- 18.1 Dollar Shave Club, Inc.
- 18.1.1 Key Facts
- 18.1.2 Business Description
- 18.1.3 Key Product/Services Offerings
- 18.1.4 Dollar Shave Club Growth Strategy
- 18.1.4.1 Dollar Shave Club Objective- Target the Women Audience
- 18.1.4.2 Perceptual Map of Dollar Shave Club- Delivery Standards of Dollar Shave Club Goods and Services
- 18.1.5 Business Model of Dollar Shave Club
- 18.1.6 SWOT Analysis
- 18.1.7 Key Financials
- 18.1.8 Recent Developments
- 18.1.8.1 Product Launches
- 18.1.8.2 Merger and Acquisitions
- 18.2 Blue Apron Holdings Inc.
- 18.2.1 Key Facts
- 18.2.2 Business Description
- 18.2.3 Key Product/Services Offerings
- 18.2.4 Integrated Supply Chain Ecosystem of Blue Apron
- 18.2.5 Blue Apron Growth Strategy
- 18.2.6 Strategic Partners of Blue Apron
- 18.2.7 Reaching and Engaging Customers Across Broad Range of Demographics, Blue Apron
- 18.2.8 SWOT Analysis
- 18.2.9 Key Financials
- 18.2.10 Key Quarterly Customer Metrics
- 18.2.11 Recent Developments
- 18.2.11.1 Product Launches
- 18.2.11.2 Partnerships (Strategic Alliance)
- 18.2.11.3 Business Expansion
- 18.3 Hello Fresh
- 18.3.1 Key Facts
- 18.3.2 Business Description
- 18.3.3 Key Suppliers and Working Model of Hello Fresh
- 18.3.4 Key Product/Services Offerings
- 18.3.5 Hello Fresh Growth Strategy
- 18.3.6 Key Financials
- 18.3.7 Projects Undertaken by Hello Fresh
- 18.3.7.1 Hello Fresh UK
- 18.3.7.2 Hello Fresh Australia
- 18.3.8 Recent Developments
- 18.3.8.1 Product Launch
- 18.3.8.2 Business Expansion
- 18.3.8.3 Merger & Acquisitions
- 18.4 Edgewell Personal Care (Harry's)
- 18.4.1 Key Facts
- 18.4.2 Business Description
- 18.4.3 Key Product/Services Offerings
- 18.4.4 Harry's SWOT Analysis
- 18.4.5 Key Financials
- 18.4.6 Recent Developments
- 18.4.6.1 Product Launches
- 18.4.6.2 Partnerships (Strategic Alliance)
- 18.4.6.3 Business Expansions & Investments
- 18.4.6.4 Merger & Acquisitions
- 18.5 Personalized Beauty Discovery Inc. (Ipsy)
- 18.5.1 Key Facts
- 18.5.2 Business Description
- 18.5.3 Key Product/Services Offerings
- 18.5.4 Beauty Brands offered by Ipsy
- 18.5.5 Ipsy Growth Strategy
- 18.5.6 Key Financials
- 18.5.7 Recent Developments
- 18.5.7.1 Product Launches
- 18.5.7.2 Business Expansion
- 18.6 PetSmart Inc
- 18.6.1 Key Facts
- 18.6.2 Business Description
- 18.6.3 Key Product/Services Offerings
- 18.6.4 PetSmart Inc, Growth Strategy
- 18.6.5 Delivery Model by PetSmart Inc
- 18.6.6 SWOT Analysis
- 18.6.7 Key Financials
- 18.6.8 Recent Developments
- 18.6.8.1 Business Expansion
- 18.6.8.2 Merger & Acquisitions
- 18.7 Netflix
- 18.7.1 Key Facts
- 18.7.2 Business Description
- 18.7.3 Key Product/Services Offerings
- 18.7.4 Netflix, Growth Strategy
- 18.7.5 SWOT Analysis
- 18.7.6 Key Financials
- 18.7.7 Recent Developments
- 18.7.7.1 Product Launches
- 18.7.7.2 Partnership (Strategic Alliances)
- 18.7.7.3 Business Expansion
- 18.7.7.4 Merger & Acquisitions
- 18.8 Flintobox
- 18.8.1 Key Facts
- 18.8.2 Business Description
- 18.8.2.1 Flintobox R& D Center Houses
- 18.8.3 Key Product/Services Offerings
- 18.8.3.1 Key Services for 2-3 Years Toddlers
- 18.8.3.2 Key Services for 3-4 Years Children
- 18.8.3.3 Key Services for 4-6 Years Children
- 18.8.3.4 Key Services for 6-8 Years Children
- 18.8.3.5 Key Services for 8-12 Years Children
- 18.8.4 Flintobox Growth Strategy
- 18.8.4.1 Strengths of Flintobox
- 18.8.5 Recent Developments
- 18.8.5.1 Product Launches
- 18.8.5.2 Business Expansions & Investments
- 18.9 Nature Delivered Ltd (Graze)
- 18.9.1 Key Facts
- 18.9.2 Business Description
- 18.9.3 Key Product/Services Offerings
- 18.9.4 Business Model of Graze
- 18.9.5 Retailers of Graze
- 18.9.6 Graze Growth Strategy
- 18.9.7 Key Financials
- 18.9.7.1 Nature Delivered Ltd Financials, US$ Million
- 18.9.8 Recent Developments
- 18.9.8.1 Product Launches
- 18.9.8.2 Partnership (Strategic Alliance)
- 18.9.8.3 Business Expansion
- 18.9.8.4 Mergers & Acquisitions
- 18.10 The Walt Disney Company Ltd.
- 18.10.1 Key Facts
- 18.10.2 Business Description
- 18.10.3 Key Product/Services Offerings
- 18.10.4 The Walt Disney Company Ltd Growth Strategy
- 18.10.5 Key Financials
- 18.10.6 Recent Developments
- 18.10.6.1 Product Launch
- 18.10.6.2 Merger & Acquisitions