Subscription box boom beating the pandemic blues
16 Dec 2021 --- “During the height of COVID, the beauty industry faced many challenges,” says Rich Quelch, Global Head of Marketing at Lifestyle Packaging. ”With the government making face masks mandatory, nowhere to go and limited places to buy non-essential grooming products, consumers made fewer makeup purchases throughout 2020.”
That said, the landscape seemingly told a different story depending on the beauty and personal care segment concerned. “While cosmetics sales dwindled, skin care products boomed,” adds Quelch, “thanks largely to the increased time spent at home as well as growing concerns over personal hygiene.”
Click to EnlargeSubscriptions offer a gift that keeps giving and a way to try something new.Skin care rituals and pampering became an important part of maintaining positive mental health, with Google searches for ‘self-care’ jumping 250% throughout 2020 compared to the previous year. “As non-essential brick and mortar shops shut, many turned to online subscription delivery services as a way of treating themselves,” shares Quelch.
In 2020, the surge in sought-after subscriptions in BPC saw 88 million subscription boxes delivered to UK doorsteps. “As a result, many beauty brands have jumped on the subscription box trend to meet shifting consumer behaviors,” Quelch continues. Subscriptions have become an important part of our purchasing lives, providing us with a variety of indulgences from TV shows and films, collectibles, food and alcohol, pet supplies and, of course, beauty products.
The rise of subscription boxes has “largely been driven by startups,” notes Quelch. “But such success is now being shared by bigger brands across verticals as they look to get a slice of the lucrative pie.”
Although there were early fears that the initial surge wouldn’t last, the subscription box market was estimated to be worth £1.4bn in 2020, soaring 135% since 2017. Its growth shows no signs of slowing down. Experts expect this figure to climb to an anticipated £1.8bn by 2025.
“Despite some commentators warning of ‘subscription fatigue’ as long ago as 2018, there are no signs of subscription culture subsiding anytime soon,” details Quelch. “COVID-19 has certainly accelerated consumer adoption of subscription services, which are fast becoming a key sales channel to promote brand discovery opportunities and grow revenues. But retaining customers in the long-term is one of the biggest challenges brands face.”
What makes a good subscription box?
With so much opportunity for startups and established brands in the BPC sector to enter the subscription segment, Quelch outlines several factors to consider when adding this popular method to one’s business model and launching a subscription box that appeals to beauty consumers. He talks us through six leading trends in the subscription box space that we can expect to see as we head into 2022:
- Personalization: Where consumers can choose the theme of their box or get tailored products based on their unique skin care needs or preferences.
- Celebrity collaborations: Where a brand promotes its box with the idea that an influential figure has curated the subscription box and decides what products are included. This becoming a more common method to attract new signups and promote brand loyalty.
- Complimentary extra: Offering bonus freebies on top of the standard selection for new orders or at particular times of year can also increase interest among subscribers.
- Discounts: Some brands add extra value to their subscription boxes by including exclusive discounts at other retailers that appeal to their target audience, or a glossy magazine for members to enjoy and learn more about topics of interest.
- Prioritizing consumer convenience: Introducing greater flexibility into subscription memberships can also increase signups, allowing consumers to pick how often they want to receive a box, or put their subscription on hold if they are going on holiday or want to save money.
- Sustainability: As beauty lovers become increasingly aware of how their purchasing decisions support the sustainability effort, brands must think about how sustainability affects consumer sentiment and loyalty.
And as always there is the environment. Driven by consumers and their changing preferences for eco-friendly products and services, a green category of beauty subscription boxes is emerging. “Zero-waste offerings are surging in popularity, featuring all-natural beauty and plastic-free lifestyle products,” Quelch reveals. “These are helping to fuel demand for sustainable options and introduce consumers to new products to support a greener beauty regimen while enjoying the benefits of a subscription.”
By Natasha Spencer-Jolliffe, BPC Insights Senior Journalist
