Straight-to-garage deliveries, brands giving up social media, and where to expect the next subscription services soon.
To combat the ever-present threat of package piracy, Amazon is rolling out a new feature that lets Prime members receive packages directly into their garages. Buyers get alerts when their garage has been opened and closed, and they can watch the carrier’s delivery on their phones. Still sound too intimate? For some it may be, but keep in mind it’s less personal than delivering into unattended homes or car trunks, a program Amazon introduced in 2017.
The new Amazon feature is available in 50 American cities.
Not Kidding Around
Following Amazon’s lead, Walmart is jumping into the clothing subscription space by partnering with Kidbox, a children’s clothing subscription service akin to Stitch Fix. Buyers can specify their clothing material, style, and frequency of delivery preferences, and will get their textile good without ever having to step foot into a dressing room. For parents of constantly growing kids, this means a child’s next size can be ordered right as they start to outgrow their last box’s contents. If all goes well with Kidbox, we should expect to see more subscription services from Walmart popping up in the future.
The Sub’s the Thing
Speaking of subscriptions, Forbes recently predicted that they aren’t going anywhere anytime soon. A true testament to the power of recurring revenue, last October saw a 40% increase in subscription customers and the numbers of people willing to try out subscription services is growing. Millennials unsurprisingly lead that charge at 38% planning to subscribe within a few months, but 22% of baby boomers also plan to join Team Subscribe along with them.
A recent McKinsey study found that the personalization and convenience of subscription packages continue to be huge factors in their favorability. Without leaving their houses, consumers can expect exactly the goods they need and want to arrive exactly when they expect them. As consumers become increasingly used to quick delivery and precision shopping, it’s no wonder subscriptions are taking off.
Last October saw a 40% increase in subscription customers and the numbers of people willing to try out subscription services is growing.
You hear about humans dropping social media often for reasons like mental health and productivity, but in 2019 it’s extremely rare to hear of a brand, let alone a successful one, giving up the platform.
Lush Cosmetics UK announced that they’re giving up their 569,000 Instagram followers because they’re “tired of fighting with algorithms.” While the North American branch will remain online, it’ll be fascinating to see how this impacts the UK-founded company’s sales and popularity among its target digital native generations.
If we’ve learned anything in retail news lately, it’s that we should expect more subscription programs to take off, personal touches still hold retail clout, and Amazon is listening to its customers’ complaints of package theft. And if a brand is going to shut down social channels, it had better be plenty confident in the rest of its marketing.