It’s no secret that subscriptions have become part of our everyday lives. From streaming platforms like Netflix, Amazon Prime, and Spotify - proving that there are many conveniences in e-commerce subscription models. That level of convenience has also made its way into the food industry, as subscription models could become a force to be reckoned with.
A recent study found that in the last five years the e-commerce subscription market has grown an astounding 100%, and it is showing no signs of slowing down. Consumers in the U.K. are spending around £2 billion a year on subscription delivery services. Food delivery services are tapping into the fact that when people arrive back home after a long day, they need of food quickly. As such, there is a real demand for healthy, quick solutions and subscription boxes are popping up every day to fill this void.
In the U.K. alone there are dozens of subscription food boxes that deliver fresh food and recipes straight to the customer’s door. From Carnivore Club to Go! Vegan Box there is a wide range of choice for almost every type of diet. Others like Hello Fresh offers the ability to choose the meals that get delivered to your door. Adding an essential option of customisation to the service alongside the curated selection, empowers the customer.
15% of consumers subscribe to a subscription service to receive some sort of physical product on a regular basis, according to McKinsey. Competition in this space is growing, in terms of range, service and sustainability. Although people are increasingly more likely to try a subscription food service, they are also just as quick at moving on if they’re not satisfied. This creates little room for error with 13 % of all subscription boxes failing, and many soon become unprofitable.
So where does this leave traditional supermarkets and FMCG manufacturers? In a slightly advantageous position as many businesses already have direct-to-consumer supply chains in place, but there are so many other opportunities to be had. Despite their current performance, food boxes offer a level of customisation, ease and charm that resonate with shoppers - insight to run with.
Ultimately it is about staying two steps ahead of your customer needs. It’s time to offer tailored customer experiences and embrace the endless menu of digital to doorstep opportunities before it is too late.
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