The Winston Box
The Rise of Subscription Boxes in America
Subscription Boxes Are Hot
These popular services, which deliver a wide variety of consumer goods and niche-oriented products to customers on a recurring basis, have experienced 800% growth in just three years.
To put it another way, 15% of all e-commerce shoppers have joined a subscription service in the past year.
Over half of all subscription services focus on curating unique boxes that give consumers the opportunity to try new things from the comfort of their home with minimal decision making (McKinsey Analysis).
Subscription service customers appreciate the advantages that come with automated purchasing and the ability to limit store trips. This is especially true with men, which is why they are more likely to have three or more active subscriptions at any given time.
This is also why apparel is a natural fit for the subscription box business model.
Apparel Boxes Are Very Popular
Apparel accounts for 1/5 of all visitors to subscription box websites, behind beauty products and food. This explains why Wall Street has been so bullish on the future of apparel subscription services, as evidenced by:
- Stitch Fix, the largest apparel subscription service in America, has seen its share price increase 90% since it's IPO.
- Trunk Club was bought by Nordstrom for $350 million.
- Dia&Co has cornered the market on the plus-size women's fashion industry and raised nearly $20 million in investments in 2016.
Yet, while there are subscription servic...