Subscription models are emerging as the next big trend in the Indian consumer market, following global trends. Several startups have launched subscription services for daily use items like shaving products, juices, and milk. There is significant scope for growth in subscriptions according to experts, though some remain skeptical about models with unpredictable deliveries that could lead to subscription fatigue. Amazon Prime has been Amazon India's top-selling product, with one in three units sold being Prime memberships, showing promise for their upcoming video streaming service Prime Videos which current Prime subscribers will have access to. Consumer goods companies are looking to adopt direct-to-consumer business models like Dollar Shave Club to chase growth in personal care and milk products.

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Subscriptions may Soon Drive Consumer Market
Subscriptions could well be the next big thing in the Indian consumer market, closely trailing a
trend in developed markets. For instance, earlier this year, Unilever acquired US-based Dollar
Shave Club, an eCommerce startup that sells shaving products to subscribers.
eTailing India Thought Corner
A good number of startups have had ventured into subscription based business model. The
Moja Club, Bombay Shaving Company, Raw Pressery, LetsShave and Ustraa are some of them
selling daily use items ranging from socks, shaving and grooming products to cold pressed juices
and milk directly to subscribers.
“There is immense scope for the growth of the subscription model in the Indian consumer
market, “says Mihir Shah, vice president, Candid Marketing, India's leading brand activation
agency.
While, he remains skeptical about the disruptive factor in the business. He adds, “However, I
believe there is limited scope for growth of subscription models coming with surprise elements

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wherein the customer doesn't know what exactly she is going to receive as part of her
subscription (as) eventually subscription fatigue kicks in.“
Amazon Prime subscription
With the end of 5-day festive sale season for Amazon, Prime has emerged as the highest selling
product for the etailer claims Amazon. Amit Agarwal of Amazon said that one out of every three
unit sold was membership of Prime,
“Amazon Prime has been the highest selling product in terms of number of units sold in the
history of Amazon in India,” said Agarwal.
This means that the paid subscribers of Amazon Prime will be default users of the yet-to-be
launched video streaming service called Prime Videos. Amazon India is currently selling the
membership at a discounted rate of INR499 for a year, which otherwise costs at INR 999 for a
year.
Also, Amazon India offers a `subscribe and save' feature that allows customers to get regular
deliveries of items such as diapers, razors, liquid hand washes, tooth brushes and talcum
powder at a discount.
Next logical step
Firms look ahead to the business to consumer (B2C) segment for growth and sustainability. “We
believe adoption of the direct business to consumer (B2C) route is the next logical step for
Indian consumer goods companies in their quest to chase growth and could tempt them to
actively adopt the Dollar Shave Club type business model,” acknowledged Abneesh Roy,
research analyst at Edelweiss Securities. Personal care and milk products sees itself a potential
market to grow.
Analysis

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The subscription model of eCommerce for goods that are consumed on daily intervals looks
promising. Subscription is the start of a global trend where you can automate recurring sales in
the burgeoning eCommerce business.