Subscription Box Trends For 2020

Introduction

Subscription boxes are leading gifting experiences for families worldwide. The industry is booming with hundreds of subscription boxes to choose from. You can get exciting best subscription boxes Canada for different occasions such as kids birthdays, gifts for your dad, meal boxes, anniversary and so much more at affordable prices.

Subscription box service facts

Subscription boxes are booming at 100% growth every year. Global sales are nearly $2.6 billion which was nearly $57 million in 2011. More than 7000 subscription boxes companies are operating worldwide with 70% of the subscription boxes originating from the US. Gartner, the global research and advisory company says that by 2023, 75% of companies selling directly to customer will offer some type of subscription based service.

Trend #1: Experience will rule

As per McKinsey, customers are expecting desirable end to end experiences and are committed to best subscription boxes Canada services where the recurring benefits like personalization and reduced costs are part of the subscription. The definition of the experience is defined by the customer and for subscription boxes it is important for them to understand their customers unique needs and desires.

Trend #2: Men will order more subscriptions

McKinsey discovered that men between the ages of 25-44 with income levels between $50,000-$100,000 are likely to order a subscription box. They also found women make up more than 60% of subscription box subscribers while men make up 42% of subscribers.  Men will likely order 3 subscriptions such as Barkbox, Dollar Shave Club and Harry's. As per a survey, more than 30.6% of men sign up for subscription box services as compared to 24.3% of women.

Trend #3: Traditional retailers will continue to venture more into subscription boxes

Wal-Mart and Target have decided to dive into women make-up beauty box subscriptions. Subscription boxes can provide a lifeline to the struggling retailers and can become major players in the business. Amazon alone has decided to start 18 different types of subscription boxes.

Trend #4: Quality will win over quantity

Subscription box subscribers want personalization for best subscription boxes Canada. For a great box less is better as too many products can reduce interest in and result in a consumer cancelling the subscription box for what they don’t want.  On one hand, offering multiple products in a subscription box is suitable for indecisive people but overall quality is the prime concern for customers.

Trend #5: Niche products will continue to reign

Niche products such as coffee, tea or comic books are in much demand for consumers and account for about 15 % of the total market size. Niche products such as lingerie, hosiery and period boxes account larger than fashion and clothing.

Trend #6: Personalization will be the king

As per McKinsey, 3 subscription boxes will remain on the top:

Replenishment: These types of subscription boxes offer ready products such as Billie a female shaving company.

Curation: these boxes are personalized and offer customized products based on customer preferences such as Birchbox. This is the most popular category of subscription boxes.

Access: These offers exclusive discounts and selection on products one would normally buy in a store, like products for your pets.

As per a report by McKinsey, 28% of respondents said personalization was the most important factor for selecting a subscription box.