[HUB Report] Subscription-Based Commerce - Brands at the time of Subcom

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After emerging in the United States during the past few years, the concept of SUBCOM has quickly gone international, notably in France where it’s been a wild success thanks in particular to « BOX ».

Still viewed as a simple marketing tactic, this new form of commercialisation will actually gradually alter consumer trends by replacing the notion of the communty being the focus. For companies this represents the means to increase the popularity of their products speciifically amongst a target audience and turn it into a loyal customer base with a model based on recurrence.

Which sectors are in the position to participate in this model? What are the keys to success? What are the examples to follow? This HUB Report answers all these questions by presenting this relatively new market, the way it works, various stakeholders in the ecosystem as well as its prospects for the future. »

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[HUB Report] Subscription-Based Commerce - Brands at the time of Subcom

  1. 1. SUBSCRIPTION BASED-COMMERCE BRANDS AT THE TIME OF SUBSCRIPTION COMMERCE - Q2 2014 -
  2. 2. HUB Report Subscription-Based Commerce Foreward «The product that you sell comes second to the reason that you are selling it. This is how we could summarize the vision of professionals developing their « subscription- based commerce » (or SUBCOM) business model. After emmerging in the United States the past few years, the concept of SUBCOM has quickly gone international, notably in France where it’s been a wild success thanks in particular to « BOX ». Still viewed as a simple marketing tactic, this new form of commercialisation will actually gradually alter consumer trends by replacing the notion of the communty being the focus. For companies this represents the means to increase the popularity of their products speciifically amongst a target audience and turn it into a loyal customer base with a model based on recurrence. Which sectors are in the position to participate in this model? What are the keys to success? What are the examples to follow? This HUB Report answers all these questions by presenting this relatively new market, the way it works, various stakeholders in the ecosystem as well as its prospects for the future. » www.HUBinstitute.com 2 Emmanuel VIVIER Co-Founder Vincent DUCREY Co-Founder Vincent PUREN Head of Content
  3. 3. HUB Report Subscription-Based Commerce User Guide for the “FULL” Version www.HUBinstitute.com 3 FOR A BETTER EASE OF ACCESS OF THE SLIDES AND MORE INFORMATION, REVIEW OUR ANALYSIS AND LINKS IN THE “NOTES” SECTION CLICK ON THE “YOUTUBE” ICON WHEN YOU SEE IT TO OPEN AND BENEFIT FROM THE FEATURED VIDEO . THE “GLOSSARY ” AT THE END OF THE REPORT WILL HELP YOU UNDERSTAND KEY TERMS.
  4. 4. HUB Report Subscription-Based Commerce Summary of the complete version of this HUB Report www.HUBinstitute.com 4
  5. 5. www.HUBinstitute.com 5 Subscribe for full version HUB Report Subscription-Based Commerce
  6. 6. HUB Report Subscription-Based Commerce Order the full version report www.HUBinstitute.com 6 ORDER YOUR HUB REPORT www.hubinstitute.com/en /sections/hub-reports/ ESSENTIALS • A PowerPoint support enriched in the « notes » section • An analysis of the first experimentations in many sectors • Interviews of experts • Predictions on the upcoming turn • And even more…
  7. 7. www.HUBinstitute.com 7 ORDER YOUR HUB REPORT www.hubinstitute.com/en /sections/hub-reports/ SUJETS (EDITION 2014) Order the full version report HUB Report Subscription-Based Commerce Google Glass Subscription-Based Commerce Connected Display Bad & Good Buzz Futur du Retail 3D Printing
  8. 8. SUBSCRIPTION-BASED COMMERCE INTRODUCTION 98www.HUBinstitute.com
  9. 9. 51.1 BILLION € What e-commerce is worth is 2013 E-commerce in France A market undergoing strong growth: 51 billion + euros in 2013 19 FEVAD – Key figures 2013 / Médiamétrie – Observatoire des Usages Internet – March 2013 77.4% Of French population shop online = +17.5% more transactions +13.5% in revenue = 89.3% of age 25-34 92,2% of AB+ www.HUBinstitute.com
  10. 10. SUBSCRIPTION-BASED BUYING SYSTEM HYBRID PROCESS MIXING SALES AND MARKETING Subscription-Based Commerce : What is it ? A new business model for e-commerce professionals, but that’s not all… 210 THE IDEA : RE-ENCHANT THE ACT OF BUYING … EVOLUTION OF THE SELLER’S ROLE INTERMEDIARY + CURATOR + ADVISOR ... BUT WITH SOME CONSTRAINTS LOGISTICS, STOCKS, SHIPPING & HANDLING, SEASONALITY, ETC. 1 2 3 www.HUBinstitute.com
  11. 11. Subscription-Based Commerce : facilitating the repeat purchase A virtuous circle based on the test, learn, subscribe model 311 RETENTION BUSINESS MODEL TARGETING SUBSCRIPTION www.HUBinstitute.com COMMUNITY DISCOVERY TRYVERTISING
  12. 12. Subscription-Based Commerce : keys to success A process based on discovery and the desire to make simplify one’s life 312www.HUBinstitute.com DISCOVER NEW PRODUCTS BE A MEMBER OF A COMMUNITY BUY (FOR SELF OR OTHERS) AN ORIGINAL PRODUCT OR SERVICE ENJOY ONE’S SELF MAKE YOUR LIFE EASIER FIND PRODUCTS CHEAPER THAN THEY USUALLY COST INDIVIDUALLY
  13. 13. A New Shopping Experience: based on “Data” A simple and targeted mechanism, focused on discovery 313 ONLINE REGISTRATION 1 2 3 4 5 FILL OUT FORMS AND CHOOSE PRODUCTS(S) SUBSCRIPTION WITH OR WITHOUT COMMITMENT PERIODIC DELIVERY OF SELECTED PRODUCT(S) EASY PAYMENT AND DELIVERY TO SUBSCRIBER’S HOME THE PURCHASE PATH www.HUBinstitute.com
  14. 14. How does the customer benefit? A model based on simplicity and accessibility 314www.HUBinstitute.com CUSTOMER BENEFITS www.hubinstitute.com/sec tions/hub-reports/
  15. 15. Subscription-Based Commerce : How do brands benefit? An extremely targeted channel 715 PROMOTION KNOWLEDGE OF THE CONSUMER REPEAT PURCHASES www.HUBinstitute.com
  16. 16. Subscription-based Commerce : Essential For the entire HUB Report: Subscribe www.HUBinstitute.com 16 ORDER YOUR HUB REPORT www.hubinstitute.com/en /sections/hub-reports/
  17. 17. THE MARKET FROM FOOD TO FASHION: THE IMPACTED SECTORS www.HUBinstitute.com 17
  18. 18. HUB RADAR : Overview of some activity sectors that are involved 4 USA EXAMPLES EUROPE EXAMPLES FunctionalEmotional 18www.HUBinstitute.com FOOD AND DRINKS BEAUTY AND COSMETICS CHILDREN AND TOYS FASHION ACCESSORIES CHILDCARE « LIFESTYLE » ACCESSORIES
  19. 19. Subscription-Based Commerce Matrix 19www.HUBinstitute.com DISCOVER THE SUBCOM MATRIX www.hubinstitute.com/en /sections/hub-reports/
  20. 20. Expert Opinions www.HUBinstitute.com 20 Quentin Vacher Head of Europe - BIRCHBOX Interview with Subcription-Based Commerce experts Martin Ohannessian Fondateur – LE PETIT BALLON Sarina Lavagne d' Ortigue Directrice Mkg - MylittleParis Jérôme Traisnel CEO - SLIMPAY
  21. 21. www.HUBinstitute.com 21 Entretien avec les spécialistes du sujet Abonnez-vous pour profiter de leur vision DISCOVER INTERVIEWS www.hubinstitute.com/en /sections/hub-reports/
  22. 22. SERVICE SUBSCRIPTIONS 1ST STEP : DEMOCRATIZE THE USES 922www.HUBinstitute.com
  23. 23. Analysis of 5 sectors affected Entertainment / IT / Luxury / Transportation / Tourism 2623www.HUBinstitute.com MORE DETAILS PER SECTOR www.hubinstitute.com/en /sections/hub-reports/
  24. 24. PRODUCT SUBSCRIPTIONS 2ND STEP : SIMPLIFY THE CYCLE OF THE FUNCTIONAL OR EMOTIONAL PURCHASE 924www.HUBinstitute.com
  25. 25. What are the drivers of this business model ? Pragmatism vs. Hedonisme All the keys in the full version of the HUB Report 2925www.HUBinstitute.com BUSINESS MODEL KEYS TO SUCCESS www.hubinstitute.com/en /sections/hub-reports/
  26. 26. PRODUCT SUBSCRIPTIONS 1-FUNCTIONAL PURCHASES 926www.HUBinstitute.com
  27. 27. Analysis of 8 sectors affected Mass Consumption / Food / Tourism / Childcare / Hygene & Beauty / Health / Art / Funeral 2327www.HUBinstitute.com MORE DETAILS PER SECTOR www.hubinstitute.com/en /sections/hub-reports/
  28. 28. PRODUCT SUBSCRIPTIONS 2-EMOTIONAL PURCHASES 928www.HUBinstitute.com
  29. 29. 1029www.HUBinstitute.com Analysis of 8 sectors affected Fashion / Cosmetics / Food/ Wines & Spirits / Entertainment / Lifestyle / Leisure MORE DETAILS PER SECTOR www.hubinstitute.com/en /sections/hub-reports/
  30. 30. TOOLS TO HELP YOU DEVELOP Which mechanics ? Which platforms ? 930www.HUBinstitute.com
  31. 31. Value chain of the business model of “Subscription Commerce” A simplified and optimized process 331 BRANDING & BUSINESS MODEL 1 2 3 4 5 SUPPLY & MERCHANDISING LAYOUT & PRESENTATION ACQUISITION OF CONSUMER RETENTION OF CONSUMER www.HUBinstitute.com
  32. 32. SUBCOM Service Providers Platforms, presentation and analysis 2832www.HUBinstitute.com PLATEFORMS SELECTION www.hubinstitute.com/en /sections/hub-reports/
  33. 33. OUR PREDICTIONS 3rd GENERATION : SPREADING OF THE BUSINESS MODEL ! 9 • 33www.HUBinstitute.com
  34. 34. Consumption’s Future : Capitalize on service From the Purchase to the Subscription ? 934www.HUBinstitute.com IN-STORE PURCHASE ONLINE PURCHASE SUBSCRIPTION 1995 2015…
  35. 35. Which sectors will explode ? Focus on the future growth sectors 2935www.HUBinstitute.com OUR PREDICTIONS www.hubinstitute.com/en /sections/hub-reports/
  36. 36. THE QUESTION TO ASK YOURSELF… … So, are you ready? 936www.HUBinstitute.com
  37. 37. Dig deeper into Subscription-Based Commerce Contact us! www.HUBinstitute.com 37 SUBCOM SEMINAR (AT BUSINESSES AND SCHOOLS) WORKSHOP (SHARE THOUGHTS AND EXPERIMENT) CONSULTING (Audi, Brainstorming, insights…)
  38. 38. To go further: HUB Review by HUB Institute Our analysis and thoughts on innovation and marketing www.HUBinstitute.com 38 www.hubinstitute.com/review HUB REVIEW OUR MEDIA SPECIALIZED IN DIGITAL INNOVATION AND MARKETING
  39. 39. To go further: read our other HUB Reports One new in-depth study per month that explores a key trend www.HUBinstitute.com 39 HUB REPORTS OUR MONTHLY STUDIES OF DIGITAL TRENDS www.hubinstitute.com/reports
  40. 40. To go further: read our publications The “Influence Guide” and the “Risk-Free Communication Guide” www.HUBinstitute.com 40 HUB COLLECTION THE HUB INSTITUTE PUBLICATIONS http://www.hubinstitute.com/books
  41. 41. www.HUBinstitute.com 41 Subscribe for full version HUB Report Subscription-Based Commerce
  42. 42. www.HUBinstitute.com 42 ORDER YOUR HUB REPORT www.hubinstitute.com/en /sections/hub-reports/ SUJETS (EDITION 2014) Order the full version report HUB Report Subscription-Based Commerce Google Glass Subscription-Based Commerce Connected Display Bad & Good Buzz Futur du Retail 3D Printing
  43. 43. Contact us ! www.HUBinstitute.com 43 EMMANUEL VIVIER HUB Institute Co-Founder VINCENT PUREN HUB Institute Head of Content vincent.puren@hubinstitute.com @vincentpuren 51 rue François 1er, 75008 PARIS emmanuel.vivier@hubinstitute.com @emmanuelvivier 51 rue François 1er, 75008 PARIS
  44. 44. NEXT REPORT : CONNECTED DISPLAY www.HUBinstitute.com 44

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