Forget magazine subscriptions—the market has something better. Monthly socks? There’s a subscription for that. Gluten-free snacks, bacon-every-month and paleo treats? You bet. You can even subscribe to “Time of the Month” feminine hygiene boxes, moss-of-the-month packages and monthly apocalypse preparation supplies.
Subscription boxes are quickly growing in popularity. Once you create an online profile and purchase your subscription (typically ranging from $10-$100 per month), a box will arrive on your doorstep every month with a variety of specialty products “handpicked” for you. You can also “gift” the subscription to friends and family.
For my 20th birthday, my sister purchased a four-month Birchbox subscription for me. Birchbox provides customers with monthly makeup, skincare and fragrance samples. At first I thought, “the last thing I need is more small crap I don’t use in my college dorm room!” But then I received my first box.
This box wasn’t just a product, it was an experience. As I opened the beautifully wrapped package, I felt like it was Christmas all over again. There was a sense of mystery, discovery, surprise and self-indulgence. And I got to repeat this experience for three more months!
By the fourth month of my subscription, Birchbox did end up filling my dorm room with small crap and clutter. I never used the “gold-infused moisturizer” nor the “bead-buffing eye caviar” (what are these things?!). However, out of the 20 samples in total, I fell in love with three products that I later bought in full-size.
I then realized this subscription model was a powerful marketing pheromone. Companies are capitalizing on a consumer’s anticipation. Customers look forward to their monthly subscriptions with the thrill of not knowing what’s coming next. They get to self-indulge and spoil themselves without the post-purchase dissonance and guilt of buying an expensive product.
The subscription model also allows manufacturers to give customers a taste or feel for products that these customers might not otherwise find. Are these boxes filling up your home with useless junk? Maybe they are, or maybe you’re finding products you love. Regardless, isn’t the magical experience worth the $10 per month?
According to Forbes, Birchbox now has more than 800,000 active subscribers, translating into $96 million in annual sales. This retail trend doesn’t show any signs of slowing down, which brings the entrepreneur in me to wonder, “What box could I sell?”