Published On: Fri, Feb 10th, 2017

Why Big Brands Are Getting into the Subscription Box Business

Where it used to be that subscription boxes seemed reserved for unique and luxury stores, it seems that big brands are now getting into the business as well. In fact as you look through the number of subscription box services you’ll see the big brands are popping up in just about all of them. So why this increased interest in subscription boxes? Let’s take a closer look.

Consumer Interest Has Grown

Big brands are always on the look-out for new trends and signs of growth, so when the subscription service industry started to expand, it was only natural the big brands took notice. A study was released by Hitwise that showed over the past three years there was a growth of 3,000% in the “sub-box” sites. The report went on to state that in January 2016 alone there were 21.4 million visits to these websites. It’s hard not to get excited by a stat like that.

Big Brands Bring Recognition to the Table

Now even though the subscription box services were taking off and gaining interest, there is something to be said for customer recognition of a brand and brand loyalty. That is exactly the case for big brands that have broken into the market. Because they tend to have an established customer base already, it can make finding subscribers easier and faster. There is no need to win customers over, as they already recognize the brand and know what to expect.

Reach a Larger Customer Base

Of course big brands are always looking for a way to grow and gain even more customers, which is another advantage of these subscription boxes. It allows these brands to reach a broader audience that they may not typically reach. The whole idea behind these boxes is that subscribers get to try something new, so why not be that “something new”?

It’s ideal for brands looking to launch a product and start social media hype. We all know the power of online marketing and these subscription boxes have taken on a life of their own in that sense. There are videos after videos on YouTube of people unboxing their subscription box. This is free advertising from a brand’s point of view.

Ideal for Niche Marketing of Products

For those brands with products that are more niche it’s a great way to get out there and be seen. With subscription boxes, the more unique ones are often more popular, especially those that allow the subscriber to personalize their preferences and profile. Luxury subscription box services such as auster.com are now popping up and filling a gap by appealing to niche product markets. Auster is a great example of a company that is offering luxury brands in a box that can be customized by the subscriber.

Expect the Trend to Continue

As big brands continue to take notice of the increase in popularity of these subscription boxes, expect to see them pop up in more and more box collections and even create their very own offerings.