Wednesday, October 13, 2021

Are D2C subscriptions on their way out?

 

D2C subscriptions were all the rage for a time.  It started with Dollar Shave Club.  And brands like Blue Apron, Stitch Fix and Birch Box followed suit.

 

The most popular categories for subscriptions are food and drink (37%), personal care/health/fitness (36%), and pets (32%).

 

But, based on new research from Attest, the overall trend for D2C subscriptions is down.  41% of Americans currently have an active product subscription, down from 47% just nine months ago.  And people with multiple subscriptions have dropped from 21% to 18% since last year. (Mahoney, 2021)

 

So what do we think about D2C subscriptions?  Why do people buy them?  Why are fewer people interested now than before?  Do you have a subscription?  If so, how many?  Why do you like/dislike them?  Do you think that they will continue to decline in popularity?  Or is there a way for them to become more popular again?

 

Mahoney, S. (2021, October 7)  Consumers Tiring of D2C Subscription Brands.  mediapost.com.  retrieved October 13, 2021, from

https://www.mediapost.com/publications/article/367582/consumers-tiring-of-d2c-subscription-brands.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=123915&hashid=WJG6Pr0n-cKmmAEAvSYYIvL2MQA

 

1 comment:

Sophia Guo said...

There is no doubt that D2C benefits companies' revenue because it controls all funds, but whether or not it benefits consumers, I think it depends. Stitch Fix successfully practices the D2C model, I am happy for this brand's achievement over these years. As a company, Stitch Fix set an excellent example for other brands to look up to by using D2C instead of traditional retail. However, personally, as a customer, I will doubt the safety since D2C companies can access and collect my data. What's more, D2C allows manufacturers more control over their brands; companies certainly care about their profit and other benefits first, even though they would say their purpose is to benefit customers. So letting companies have total control might not have a positive impact on consumers. I don't think D2C will die because as long as it helps people make money, companies will use this structure. And the technology development also assisted companies with a D2C strategy. However, D2C wouldn't be able to take over all of the other business structures because not every customer would be keen on it as much as companies do.