Skata Street

Online Grocery Order App Software on Monthly Subscription-basis for Supermarket

Subscription Box

Article2021

We live in a time where convenience is everything. So much of what we do has and is becoming digitized. And we as consumers love the concept of pushing a button and having what we need show up at our door 2 days (or less!) later.

A subscription box refers to the auto-delivery service of niche-oriented items on a recurring basis, such as monthly, half-yearly or yearly. Some exceptional features of subscription boxes incorporate curation of products by the consumers, surprise or mystery items in the box, and artistic representation of the contents. Subscription boxes are extensively adopted across diverse sectors, such as food and beverages, personal grooming and hygiene, health and fitness, childcare, apparel, books, pet care, etc.

Online delivery of grocery has been the most difficult model to crack for startups owing to several reasons such as soaring costs of delivery, wafer-thin margins and a highly perishable inventory. Thus, the online grocery model is seeing quite a few tweaks.

Business models are evolving with time, resulting in the emergence of new exciting trends sometimes due to changes in the market or sometimes due to the advent of technology. Subscription boxes are a recurring delivery of niche products as part of a marketing strategy and a method of product distribution. Subscription-based ecommerce businesses use Subscription boxes, referred to as "subcom" for short, which follow a subscription business model. A wide range of customers are targeted whose specific needs and interests are catered to. It is estimated that there are 400 to 600 different kinds of subscription boxes overseas.

A considerable growth in the e-commerce sector along with increasing penetration of social media trends is to largely expand the market for subscription boxes. In addition, the escalating influence of various social media blogs and numerous celebrity endorsements is also driving the product demand, particularly among the urbanized and millennial population. Additionally, several retailers across varied industries, such as personal grooming, cosmetics, food and beverages, apparel, etc., are adopting numerous marketing strategies for expanding their consumer base. These retailers are launching lasting subscription services for increasing customer loyalty along with catering to specific consumer tastes and preferences.

In line with this, various social media-based startups are prone to incline towards subscription boxes for creating brand awareness, maintaining consistent revenue, and promoting built-in marketing. Additionally, these startups also work in partnership with several social media bloggers, vloggers, and influencers for promoting their products bolstering market growth. Moreover, numerous luxury brands in the fashion and cosmetics sectors are launching free product trials along with heavy discounts by the adoption of subscription boxes which is also augmenting the market. In addition to this, the increasing consumer preferences towards personalized items and curated products will continue to drive the global market for subscription boxes over the forecast period.

Grocery delivery services play a key role in many households. These services help save time and remove the overall hassle of grocery shopping every week. Subscriptions vary in both cost and frequency, making them more accessible to a greater range of customers with different socioeconomic backgrounds. Subscription boxes tend to range from the minimum to the maximum.

Why Do We Like Subscription Boxes So Much?

Subscription boxes are the gifts that keep on giving. It's so simple and so irresistible; punch in your credit card information and for a small, regular fee, a package shows up at your doorstep each month filled with fun new treats.

Subscription Box Business Model

Skata Street

Grocery Shopping App to Take Supermarket Online Orders

Curation, which offers personalized items based on individual consumer preferences succeeded by Replenishment, which offers a steady supply of consumable goods. Access, which offers exclusive selection or discounts on items a consumer was probably going to buy anyway, such as food. A report found that curation was by far the most popular category followed closely by replenishment and then access. Initiatives of live events and using artificial intelligence to optimize customer personalization, for example, contribute to the psychological value that transcends the physical experience of simply receiving beauty products in the mail. This initiative is increasingly prioritizing novelty and excitement as a significant factor in both the initial conversion and long-term retention of a subscription box service.

The Growing Popularity of The Subscription Box

There's no denying the subscription box business model is incredibly popular as there are thousands of services to choose from offering a wide range of products. Subscription boxes have seriously blown up in recent years. From meal kit delivery services to boxes filled with clothes based on your style preferences, the subscription trend has proven to be extremely popular with consumers and extremely lucrative for the companies that sell them.

As is evidenced by the explosion of services that eliminate daily hassles from our lives - we now can get our groceries delivered, meals planned and delivered (we don't even have to select the ingredients), whole outfits delivered without ever picking out the clothes or even browsing a website.

While it is common knowledge that online shopping is steadily overtaking traditional retailers as the younger generations opt for digital experiences, this is only one of many attributable factors. Some other major contributing factors include:

  1. Convenience

    The increasing popularity of online shopping goes hand in hand with the convenience of making purchases at the touch of the button and this is also the case for subscription boxes. Having products pre-chosen and replenished monthly adds another element of convenience which is attractive to consumers as the time-consuming browsing and selection process is eliminated.

  2. Personalization

    Subscription boxes offer carefully chosen products from a wider range, often to complement a certain need. For example, a company offering meal kits could choose their boxes based on different dietary requirements. Consumers don't have to spend unwarranted time browsing through pages of products to find a suitable selection, making purchasing decisions much easier.

    Strategically and accurately defining 'personas' for each box has proven to be a successful strategy for many businesses as consumers are drawn to purchase something which feels tailor-made for them. By creating personalized experiences, consumers are also more inclined to make a larger purchase. For example. If a group of relevant products are offered in a bundle, they are more likely to take this option than if they were to find the products individually.

  3. Value

    Businesses often attract customers through price bundling techniques, advertising their boxes as offering 'discount' in savings versus buying each product individually. This is a massive draw card as consumers strongly consider discounts and value when making purchasing decisions.

    With subscription boxes promising ongoing deals, which are only available through this channel, consumers are also affected by ‘fear of missing out, a psychological phenomenon which drives consumers to purchase primarily so as not to miss out' on an offer and, as such, are inclined to continue their subscriptions.

  4. Novelty

    Although novelty was questionably a more significant factor during the advent of subscription boxes, the anticipation of receiving a package and the uncertainty of its contents continues to play a significant psychological role in their popularity.

The information provided on this web page is for general informational purposes only and is not a substitute for professional advice. All information is provided in good faith, however we make no representation or warranty of any kind, express or implied regarding the accuracy, validity, reliability, availability or completeness of any information. Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. We do not provide any kind of [medical/legal/fitness/health/other] advice. The use or reliance of any information contained is solely at your own risk.

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Subscription-based Online Grocery Store App to Take Supermarket Orders

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