Trend course lesson 3: SUBSCRIPTION TREND CASE STUDY
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Transcript of Trend course lesson 3: SUBSCRIPTION TREND CASE STUDY
INNOVATION LANDSCAPE
MACRO-DIMENSIONS
FUNDAMENTAL LEVEL
Innovation landscape encompasses business and organizational innovations that can appear in the form of start-ups, new features, models of operations or value creation
the dimensions that have influence on our everyday lives: culture, lifestyle, consumption, environment, governance, organization, technology, community, demographics or education
behaviors and needsbeliefs and values
the underlying ideological system/s where every phenomenon is marked by evaluation
the expression of the underlying ideological system – through stories, conversations, actions, choices and needs
-content-
-sampling and curation-
-product supply-
MODELS
The oldest form of subscriptions – content.
Now this is not only news media, but also books,
music, video games and video content.
Subscription for a consumable or short-life product that needs to be replenished pretty often
Subscription as a curated range of products or
samples distributed to subscribers
-content-
-sampling and curation-
-product supply-
MODELS
The oldest form of subscriptions – content.
Now this is not only news media, but also books,
music, video games and video content.
Subscription for a consumable or short-life product that needs to be replenished pretty often
Subscription as a curated range of products or
samples distributed to subscribers
-product as service-
With most software providers moving onto subscription models,
other unrelated categories will also turn their
offerings into service
SOFTWARE SERVICES
CONTENT SERVICES
OTHERCATEGORIES
The default state of the subscription model
The mainstream thinking behind new application and
software development
Traditional categories entering the subscription
business
AREAS OF APPLICATION
SOFTWARE SERVICES
CONTENT SERVICES
OTHERCATEGORIES
The default state of the subscription model
The mainstream thinking behind new application and
software development
Traditional categories entering the subscription
business
AREAS OF APPLICATION
This is the area where interesting things are happening and one that
is worth exploring further
https://www.birchbox.com/
https://barkbox.com/
https://clubw.com/
Some of the categories (like food and healthy living) are becoming more sophisticated with subscription service coming as a means to achieving specific goals, i.e. losing weight.
HYBRID SERVICE
https://www.dietchef.co.uk/
The subscription services are expanding even to the categories that were once considered infrequent purchase destinations. The product is de-emphasized – combination of products is stressed.
TRADITIONAL CATEGORIES, NEW WAYS OF DELIVERY
https://one.mistobox.com/
https://clubw.com/
https://www.carnivoreclub.co/
The subscription services rely on the ability of the provider to select, try out, suggest and deliver new and exciting products. Trust in the curator results in a business result.
SERVICE SUCCESS EQUALS CURATORS REPUTATION
http://www.teabox.com http://justtherightbook.com/ https://www.bombfell.com/
The other emergent factor for subscription model is the level and accuracy of personalization. The main pay-off for the consumer is „the number of new things I can discover that will adhere to my taste and preferences“.
SUBSCRIPTION SERVICE IS ABOUT ME
-cheap delivery infrastructure
-internet usage
-cloud services
Deliveries and logistics have evolved in giant leaps – everything can be delivered to most places within realistic time-scales and without breaking a sweat. Delivery infrastructure becomes available even to small business owners.
Internet and mobile usage is peaking, the scale of e-service is increasing even in countries where the number of internet user has already reached it peak. DATA is the most essential metric.
We are relying more and more on cloud services and they are becoming both the storage points and service/application points for most of the things we do.
RELATEDTRENDS
NOMADIC LIFESTYLES
DECLUTTERED LIVING
We tend to surround ourselves with abundance of stuff and things. But eventually they pile-up, require additional attention and slow us down. The declutter trend is about simplifying our lives by getting rid of the unnecessary and unessential things; it manifests itself in interior design, consumption and organizational habits and ideologies.
We are leading nomadic lifestyles in terms of where we live, where we work and where we
socialize. These places are no longer tied together and we are not stuck with them for such
long periods of time as we used to be.
-organizational needs
-innovation needs
-discovery needs
people are constantly short on time, so it is only natural that they require brands and businesses to help with the following aspects: save time, develop good habits and help organize everyday life.
we get bored quickly - discovering new things keeps us engaged. It is also about things that matter specifically to us.
people evaluate brands and businesses by how much those brands and businesses are able to improve, innovate and move forward. We pay more attention to things that evolve and quickly forget the ones that don’t.
-organizational needs-innovation needs-discovery needs
THE MATCHIt is evident that most of the subscription services serve basic
consumer needs – there is a direct match between the offerings and underlying consumer needs.
-service-curation and
personalization
ATTITUDE TOWARDS CONSUMPTION
PRODUCT AS EXPERIENCE
PRODUCT AS OWNERSHIP
product that holds symbolic value and has value in itself and in prolonged ownership. The tie that we have with it is important.
product is disposable and continuous – only this
continuity helps to establish a particular experience
-singular -maintained-claimed and owned
-continuous-disposable-experiential
if products have always had symbolic value, only subscription services will
truly be a part of a lifestyle status
VALUE MODEL #1
the proliferation of subscription services
the saturationof subscriptionservices
CRITICAL MOMENTSIN TREND DEVELOPMENT
subscription services becoming acceptably mainstream
the proliferation of subscription services
THE PRODUCT-SERVICE SYNTHESIS
This phase means that even categories that have no relation to traditional subscription categories
will move into the same model, e. g. think of restaurants, barber shops, education services offering subscription model for their product
the proliferation of subscription services
LONG-TAIL SUBSCRIPTIONS
MASS BRANDSUBSCRIPTIONS
Even though subscription services have been about long-tail subscriptions (products and services that cater for niche needs and audiences), big brands are going to move there as well to
leverage their existing touch-points, brand presence and infrastructure
subscription services becoming acceptably mainstream
the proliferation of subscription services
subscription services becoming acceptably mainstream
the saturationof subscriptionservices
Transition from mainstream to saturation is going to pick up a few innovations as well –
and this is mostly going to be about evolution of subscription formats
ON THE WAY
the proliferation of subscription services
subscription services becoming acceptably mainstream
the saturationof subscriptionservices
1.MICRO-SUBSCRIPTIONSSubscriptions will move into micro-
subscription field – just like MEDIA OUTLETS are asking you to pay 1 $ per week to view the site without ads. This will spread with
small subscription services emerging everywhere and even accompanying
traditional paid products as an additional value tier.
2. SMART SUBSCRIPTIONSSubscription services will gather more and more data about the consumer – but this
time around this data will have to be used for direct consumer’s benefit: better product development, better selection and range.
This evolutionary factor will determine dead-end services and the ones that are worth
long-term investment.
the proliferation of subscription services
the saturationof subscriptionservices
subscription services becoming acceptably mainstream
This is where it will get the most interesting as people will start noticing that they have
too many subscriptions at the same time and they are starting to weigh down on their finances. This is going to be the sobering
moment for the whole subscription industry. It is also going to be a serious incentive for
further developments
BREAK-DOWN POINT
the proliferation of subscription services
the saturationof subscriptionservices
subscription services becoming acceptably mainstream
1. FLEXIBLE SUBSCRIPTIONSThe providers will have to realize that in
order to get their customers back they need to provide simple options for suspending and
activating accounts.
2. SUBSCRIPTION SHARINGFinancial situation will finally spawn this
monster – by sharing we will be able to get the most out of joint accounts and spend less
on everything.
3. MINDFUL SUBSCRIBINGAt some point we will start looking over our
shoulder and wondering whether actually owning something wasn’t such a bad idea
after all and how to get rid of this constant access to everything.
FLEXIBLE SUBSCRIPTIONSThe providers will have to realize that in
order to get their customers back they need to provide simple options for suspending and
activating accounts.
SUBSCRIPTION SHARINGFinancial situation will finally spawn this
monster – by sharing we will be able to get the most out of joint accounts and spend less
on everything.
MINDFUL SUBSCRIBINGAt some point we will start looking over our
shoulder and wondering whether actually owning something wasn’t such a bad idea
after all and how to get rid of this constant access to everything.
These trends will disrupt the subscription market and place value on traditional buying and owning (again)