Unpacking product subscription models

Subscription services have been a part of consumers’ lives for decades, typically through print, such as newspapers and magazines, and more recently with media and entertainment services like Netflix and Spotify. In the last decade, however, product subscriptions to include everything from clothes to personal care, from toys to food, has increased in popularity. In fact, one in five consumers in the U.S. have tried a product subscription.

In the world of consumer products there are two distinct types of subscriptions that bring products to your door. The first is box subscriptions, which allow users to try a variety of products curated and shipped to their door. The second is replenishment, which as the name suggests, is the restocking of essentials such as household supplies and personal care products aimed at offering convenience.

While there are many factors which contribute to the ups and downs of product subscriptions, this paper focuses on the customer as growing a strong and steady consumer base has been a challenge for many replenishment and box subscriptions. Ipsos research found that over 55% of people are aware of these services and are interested in them, but barriers to adoption exist. We explore these barriers and show you why addressing them could put product subscriptions on a steady growth path.