What impact has the subscription + e-commerce model had on the industry?

The earliest subscription box service was called The Sampler. The word Sample refers to samples, which were originally launched by individual artists and suppliers to facilitate users to try various products. Since then, subscription boxes have begun to show explosive growth, and the number of users and profits of many brands have doubled every year.

McKinsey's research found that the e-commerce market for subscription boxes has grown rapidly over the past five years, from $57 million in sales in 2011 to $2.6 billion in 2016 .

The growth of the subscription box market has attracted the attention of major brands, which have begun to collectively enter this field. According to McKinsey data, Procter & Gamble's razor subscription service Gillette on Demand, Sephora's beauty subscription box Sephora Play, and Walmart's Beauty Box are all signs of brands entering the subscription market.

In addition to launching their own subscription services, brands have also opened up the market by acquiring well-known subscription service companies. For example, Unilever spent $1 billion to acquire Dollar Shave Club, which was one of the earliest companies to participate in the subscription model and achieved very sensational results.

Subscription e-commerce services are becoming more diversified, offering more additional services. For example, Amazon's Prime, in addition to being able to purchase Prime products, members can also enjoy two-day delivery, streaming services, etc. This in turn further stimulates the development of on-demand subscriptions.

Another business model that subscription services have spawned is same-day delivery services. Whole Foods, which was acquired by Amazon, has launched same-day delivery services across the country.

As more and more solutions emerge, same-day delivery will no longer be a unique model for Amazon, but will become the norm in the industry. Therefore, subscription services will present such a state in the future: consumers subscribe to the service, then place an order according to their needs, and receive the product within a few hours.

It’s worth noting that not all ideas can become a successful subscription brand. Although we have seen the success of brands such as Birchbox and Dollar Shave Club, there are many more similar companies that have disappeared from the market.

According to Entrepreneur, subscription services peaked in 2015 and have since started to decline. But that doesn’t mean there isn’t room for growth, or that subscription services are a flash in the pan and the bubble is starting to burst .