The consumer packaged goods industry is one that has long
been adapting to change in the marketplace. Mobile shopping has had an impact,
although not as significant for grocery, but newest on the scene is a player
that can seemingly hold its own: the subscription snack box is quickly becoming
the sampling way of the future.
A subscription box is a package of retail products sent
directly to a customer on a reoccurring basis, and subscription box e-commerce
based business is a rapidly growing market. New companies are popping up every
day selling all kinds of different products to customers who subscribe to their
service - everything from all natural food products to fancy cured meats to dog
treats and toys.
How big a market are we talking? It has been estimated that there
are 400 to 600 different kinds of subscription boxes available to consumers in
the United States alone and more overseas ranging from $10 to $100. Even
retailers like Amazon.com, CVS Pharmacy, Freshpair, and Lancôme use
subscription commerce. According to Forbes, Birchbox, which is arguably the
most recognizable service and valued at a reported $485 million in April 2014,
led the subscription box trend with its 2010 launch. Since that time, others
have jumped on the bandwagon to try and get a piece of the subscription pie.
The ability to try a whole bunch of new products, products
conveniently delivered right to the door, gives customers a new level of
convenience. So why does this matter for retailers? What is this subscription
service really good for? Arguably the biggest boon for companies taking
advantage is the increased brand awareness and the development of brand
loyalty, especially for newer companies.
Other extras: customers often receive discounts on products
by buying them through subscription boxes. Customers enjoy the surprise of
discovering and trying new products or receiving their favourite products with
such convenience. Again, both of these contribute to overall brand perception
and brand loyalty.
For retailers, there are two things to consider when it
comes to joining the subscription snack box team though: the costs of packaging
and shipping can be high and your product packaging needs to speak for itself.
Subscription businesses have to maximize their packaging to ensure that their
package is arriving intact, that it reinforces their brand, and is cost
effective to ship. These can be overcome with a design that accomplishes all
without sacrificing one.
Want to take advantage of everything this growing trend has
to offer? A bit of upfront planning can save a ton down the road, and help you
achieve maximum results.
Packaging Technologies Inc. has you covered. Call us
today for all your packaging needs: 1-800-303-5883.
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