Retail subscription business È stato salvato
Retail subscription business
Deloitte Digital and Zuora release a Report on the present and future of subscriptions in the Retail sector
In current scenario, subscription services already represent a widespread reality in the global retail sector and a rapid growth is expected by 2025.
This increase will be notably driven by specific sectors: electronics, food and beauty among others. This is one of the main evidences emerging from a report issued by Deloitte Digital together with Zuora.
About the study
Zuora and Deloitte collaborate to support brands in building effective and economically sustainable subscription programs, aimed at satisfying retail consumer needs.
The partnership decided to conduct a quantitative research among 12,500 consumer in 12 countries from 3 main regions: the U.S., Europe and Australia, to collect insights about the current and future retail consumer needs, behaviors and propensities for adopting subscription services.
This report shows the research result and is intended to:
- Understand the current and future levels of retail subscription adoption in various retail segments.
- Learn about the aspects driving consumer decisions when adopting or dismissing retail subscriptions.
- Analyze how retail subscriptions affect consumer behaviors in terms of purchasing time, expenses, usage time.
- Get insights about the preferred subscription models of retail consumers.
- Provide specific views and details for each country and retail segment.
A bright future for retail subscriptions
The retail subscription model is already a clear reality: 37% of global consumers have at least one active retail subscription. By 2025, this number is expected to grow significantly to 53% of consumers worldwide (51% in Europe).
Grocery is the strongest growing segment for subscriptions
Electronics (19%), Grocery (17%), and Beauty & Cosmetics (15%) are currently the retail segments with the highest percentage of subscribers. By 2025, these segments will retain their relevance, but Grocery will reach a 32% of subscribers.
Two factors of success: new retail subscribers and retail ecosystem
The expected growth of retail subscriptions will generate a great business opportunity for Retailers looking to expand their subscriber bases.
By 2025, 20% of retail consumers will be new subscribers. Of the 53% of predicted worldwide subscribers, 38% do not currently have a retail subscription, but will activate one or more in the near future. 55% of future subscribers will be characterized by having subscriptions in multiple retail segments.
The drivers for subscription: flexibility, convenience and experience
Three main factors contribute to guiding users' choices to new subscription activations:
- Flexibility to choose different subscription service options and to withdraw from the same.
- Convenience by saving, thanks to the promotions offered by the retailer.
- Purchasing experience, with a quick and fluid order management supported by transparent communication.
In this context, it is necessary for retailers all over the world to invest in the most suitable subscription model for their business, to ensure a competitive positioning within their sector.