RSR Research: Should Subscriptions Be Part of an Omni-Channel Brand Experience?
Through a special arrangement, what follows is a summary of an article from Retail Paradox, RSR Research's weekly analysis on emerging issues facing retailers, presented here for discussion.
Most people know about entertainment subscription services, such as Netflix, but subscription retail clubs have gone beyond simply renting this weekend's entertainment.
Generally, the services available either offer "curated" assortments or a targeted assortment of items that tend to be "replenishment" oriented. Such names as ShoeDazzle, Birchbox, Carmine, and The Trunk Club surprise the shopper with new selections every month, while companies such as the Dollar Shave Club, which replenishes razors monthly for a few dollars, focus on a very narrow set of solutions that fit a particular need.
DSC also makes it fun. For example, included in the ultra-low-cost plain brown envelope that carried this month's razor supply, I also got this (and not much more):
Having managed an IT HelpDesk function, I feel like I know that guy!
Now DSC is expanding their categories, introducing "One Wipe Charlies" (I'll leave it to your imagination).
Hoseanna offers replenishment for (you guessed it) women's hosiery. MyDogBowl will replenish your pet food pantry. Peets Coffee replenishes your chosen bean via a "straight from our roaster to your front door" service with a percent-off incentive on each order. Starbucks has a similar service. Even Amazon Prime makes it possible for consumers to receive replenishment items.
Is there a subscription play for established multi-channel retailers? For example, could Nordstrom (already with a fine direct-to-consumer offering and a catalog business) get into a subscription model? Their website offers a "personal stylist" service that will "make shopping fun and easy by curating items from the entire store that reflect your personal style, advise you on the best shades and silhouettes for your coloring and body type, put together a complete look for any occasion, work within your budget and schedule."
But the shopper has to make an appointment. Why not go to the next step? After the initial consultation, offer periodic updates (for curated seasonal fashions) or replenishment (for cosmetics) directly to the consumer.
Subscription retailing doesn't have to be only an alternative for people who don't have the time or who hate to shop. It can be part of the total Brand Experience. It's another permutation of "omni-channel" that even traditional retails can — and perhaps should — explore.