Breakfast Club was especially tasty on Monday when adHOMErs got to sample some delicious snacks from popular subscription boxes.
We explored the latest retail craze: monthly subscription boxes.
You can now choose from hundreds of boxes filled with premium samples from major brands that get delivered right to your door each month for as low as $10.
The first subscription box on the market was Birchbox back in 2010. Each month, Birchbox subscribers receive a box containing in-demand beauty products from reputable cosmetics companies, which provide the products at no cost to Birchbox. The company has grown tremendously since its inception and is now worth an estimated $485 million. Birchbox’s success is due in part to the value it brings to customers. Most boxes have values that are double and triple what they actually cost.
Naturally, competitors started to put their own boxes on the market and, by 2012, new boxes were launching every week.
Birchbox and other subscription boxes like Barkbox, which features toys and treats for dogs, are growing in popularity partly because of the “surprise” factor. You never know exactly what you’re going to receive, but you know you’re going to get a present each and every month. Plus some of the products may not be readily available in retailers, so their exclusivity adds to the appeal.
There is now a box for every interest you can imagine. Whether you like snacks, cats, dogs, cars, sports, beauty, crafts or more – THERE’S A BOX FOR THAT!
Marketing
Now let’s get down to the marketing. Many of these subscription companies have commercials that are going viral on Youtube.Here are some of our favourites.
Dollar Shave Club:
and who could forget the hilarious yet cringeworthy HelloFlo box commercial:
It’s become difficult to find these ads through searches on Youtube because the consumers have uploaded so many videos showing themselves unboxing, reviewing and comparing boxes.
These subscription companies essentially get major views on free glowing testimonials without even having to ask. It’s brilliant.
Key take away
Subscription boxes are a win-win-win. The consumer wins because they get tremendous value, convenience and mystery. The subscription box companies win because their production costs are low and they get tons of free promotion through reviews on Youtube. The companies whose products are featured in the monthly boxes win because their products don’t have to compete for shelf space in big stores and get major exposure from being delivered directly to excited consumers across the globe and also from box reviews on Youtube.
subscription boxes – a better kind of monthly gift