Why Subscription Boxes Succeed

“Consumers have accepted the model,” Elaguizy noted. “They accepted that curated personalized products being delivered to their door on a regular basis is high-value and they’re interested in it. Now it’s being integrated in all sorts of places.”

  • While big-box retailers cater to the interests of many, subscription box services can be niche and hyper-personalized.
  • “The engagement of social media has allowed people to develop much more nuanced interests, and that has created this market where people who understand those nuances … come together and say, ‘I can put together an experience that nobody else will.’”
  • Consumers are now more comfortable with putting a credit card on file for recurring payments, trusting that the value they receive in the long-term will be worth the payments, even if every box isn’t a hit.
  • Overall, Elaguizy noted that curated subscription boxes will continue to grow as long as businesses emphasize personalization.
  • “Subscription boxes are about the fact that somebody who understands me specifically took the time to sit down and put together a selection of products, physical and digital, and wrapped them in an experience that feels like a dear friend put it together,” Elaguizy said. “What we’re seeing is more and more folks realizing that curation and personalization are the future.”