Subscription Boxes

Subscription boxes and hampers

Compiling Subscription Boxes

What are subscription boxes?

If you’ve ever struggled to find that perfect gift, then you may well have considered some form of subscription for that difficult-to-buy-for person. Historically you might have been limited to 12 months of Good Housekeeping but now the subscription gifts list is virtually endless, including wine, craft gin and beer, fair trade chocolates, luxury beauty makeup and flowers. If it can be delivered, it can form the basis of a subscription box offering for a brand or business.

Of course, subscription boxes are not just limited to gifts. Brands such as Gousto, Hello Fresh and Mindful Chef have all made their names saving busy professionals from having to think what to cook for dinner and where to buy the ingredients, thanks to their healthy meal subscription boxes. These food subscription boxes comprise a recipe and fresh ingredients which are individually portioned up to be cooked at home.

The direct debit gift that keeps giving

Online shopping has undoubtably increased in popularity since lockdown. In March 2020, just as the first covid lockdown hit, about 40% of UK shoppers said they had been shopping more online, compared to before the coronavirus (COVID-19) pandemic. By February 2021, this percentage grew to approximately 75%. (Source)

The temporary closure of high street shops during the pandemic forced more people online and forward looking brands responded by improving their online offering and strengthening supply chains to meet increased demand.

Subscription boxes also increased in popularity during lockdown, with Hello Fresh, Mindful Chef and Gousto all expanding their workforce as a result. Beauty and wellness boxes such as Birchbox also reported a significant increase in website traffic and subscription orders compared to pre-covid levels. (Source)

A lady packing a subscription box

What is the future of subscription boxes?

Research conducted by Barclaycard reported that 81% of households signed up to subscriptions in 2021 (versus 65% in 2020), meaning that subscription boxes are very much here to stay.

No longer a short-term treat, research found that shoppers stay signed up to a subscription for an average duration of 9 months (versus 5.6 months in 2017). (Source)

So what’s the future for subscription boxes? According to The Subscription Box Global Market Report 2024, the global subscription box market is “expected to achieve a compound annual growth rate (CAGR) of 17.2% from 2023, ascending from a valuation of $31.40 billion to $36.80 billion in 2024. This growth trajectory is expected to persist, forecasting the market size to reach a remarkable $71.77 billion by 2028.” (Source)

What are the benefits of subscription boxes?

Whether it’s makeup subscription boxes for woman, beauty boxes or craft beer subscription boxes, for the recipient, the delight of something positive arriving on your doorstep on a regular basis cannot be underestimated.

Be it a gift for someone else or shaving products from a brand you love for you, subscription boxes save the consumer time, whilst offering them convenience, value for money and access to highly tailored products.

From the brand’s point of view, subscription boxes offer the perfect opportunity to build brand loyalty and increase customer retention.

Adding samples to a subscription box

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What makes an effective subscription box service?

With the subscription box market set to expand, offering exactly what the consumer wants really makes the difference.

So what are the features of an effective subscription box service?

How can MRM support your subscription box business?

The global subscription box market has grown rapidly over the last 5 years and this is a trend that is set to increase.

MRM can offer support and advice about all aspects of subscription box handling and fulfilment, from storing product for shipment, building boxes with contents that vary each month and monitoring campaign effectiveness.

And because MRM handballs every delivery, we can offer high levels of personalisation, right down to fulfilling individual subscriber requirements.

Want to find out how subscription boxes could work for your brand? Get in touch for an informal chat about any aspect of subscription box handling and fulfilment.

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