Subscription shopping is nothing new, but new data released by first-party data platform, Dynata, as part of its Global Consumer Trends Report ‘The New Experience Economy’, reveals some surprising growth in this way of purchasing.
Nearly one-fifth (19%) of Australians have at least one retailer subscription that delivers products to their home on a regular schedule right now. Millennials, those aged between 25 and 39, have embraced subscription shopping the most with 29% of them having at least one retailer subscription.
Of those who embrace this passive way of spending and consuming, almost one in three (28%) have a clothing subscription. The most popular subscriptions in Australia are for food and beverages (44%), followed by personal care products (34%), and then household products and supplies (33%).
Interestingly 42% of men have a subscription to ‘personal care products’ such as soap, shampoo, cosmetics, moisturisers, etc, compared to only 25% of women. This could be due to the success of subscription male grooming e-commerce retailers such as Dollar Shave Club.
What does this mean for retailers? Should they consider this option more carefully?
As many retailers know, subscription shopping can be incredibly ‘sticky’ for consumers who prefer this passive spending for ease of budgeting and the convenience of home delivery. For retailers it provides an almost guaranteed sale month-on-month and makes it easier to plan inventory and forecast profit.
Australia is in its infancy when it comes to subscription clothing shopping, but it will be interesting to see which of the large retailers will be the first to embrace it as mainstream.