Have you heard of services like Nature Box or Blue Apron? Ipsy? Loot Crate? Birch Box? All of these are part of a hot new trend: subscription box services. These are services that promise "curated boxes" of whatever genre of products the consumer is interested in. Like make-up? Try ipsy. Like geek gear? Try Loot Crate. There are so many of the services now, and they are relatively cheap to subscribe to, ranging from $10 to $40 per month. So what makes these so appealing to customers? Is this just a fad or a real business venture?
You might be surprised to find out these business are actually quite lucrative. One entrepreneur made a subscription box service that earned $50,000 in 6 months. And the overheard for these businesses is pretty low. Finding products to put in the boxes, hosting a website, and covering shipping costs are the main costs these business face.
These businesses are popular with the younger generations who like the mystery of whats in every box. The boxes are a good example of what it means to know your customers. People want these boxes and the experiences they provide. Many of these boxes have received capital investment and it has quickly become a multi-mullion dollar industry.
These subscription services have somehow managed to market a box without telling you exactly whats in it. This teaches us that strong marketing can be more important than the product itself. Understanding what your customers need, seeing the costs of a businesses, and making relationships with other companies can make a business successful. I think what we have learned in this class, most of all, is that how you market your company is how successful it will be. So put in the research, the time, and the money to develop your brand.
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