Excerpts from the article by Louis Columbus on Forbes.com
The State Of The Subscription Economy, 2018
- The subscription e-commerce market has grown by more than 100% percent a year over the past five years, with the largest retailers generating more than $2.6B in sales in 2016, up from $57.0M in 2011.
- E-commerce subscribers are most likely to be 25 to 44 years old, to have incomes from $50,000 to $100,000, and live in urban environments in the Northeastern U.S.
- 15% of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis, frequently through monthly boxes.
- Amazon Subscribe & Save, Dollar Shave Club, Ipsy, Blue Apron and Birchbox are the five most popular subscription sites in 2018.
These and many other insights are from an in-depth survey McKinsey & Company completed to better understand the dynamics of the subscription e-commerce market and its major trends. The results of the survey, Thinking inside the subscription box: New research on e-commerce consumers are a fascinating glimpse into the current state of the subscription economy. McKinsey’s research team interviewed 5,093 U.S.-based respondents, 4,057 of which were online shoppers who had spent at least $25 online in the past month. For additional details on the methodology, please see the study here. A PDF of the study is available here (9 pp., registration on site required).
Key takeaways from the study include the following:
- 15% of online shoppers have subscribed to an e-commerce service over the past year, with 46% of respondents subscribed to an online streaming-media service including NetFlix. Subscription-box services that deliver products regularly include Blue Apron, Dollar Shave Club, Ipsy and Stitch Fix. Subscription-based media includes Amazon Prime Video, ClassPass, Hulu, Netflix, Spotify, and others.
Read the full article on Forbes.com