The list of retail companies in danger of bankruptcy is growing fast, according to Forbes, and Neil Saunders of GlobalData Retail estimates that nearly 50% of retail square footage in the U.S. has closed as a result of COVID-19. Savvy entrepreneurs and startup founders are always on the pulse of new demands, and they, like other business owners, are already considering other models of sale — such as subscription box businesses — as an alternative to in-store shopping experiences.
The truth is that COVID-19 is just the tip of the iceberg for this niche market. In just four years, the subscription box industry grew by an impressive 890%. There are many reasons for this. including the bonus/discount/surprise aspects of mystery boxes and the pleasure of receiving regular items at one’s home.
If you are thinking of starting your own subscription company, now is arguably the ideal time to research, plan, and launch your company. By tuning in to the most coveted items — even during a time in which overall spending may be lower owing to job uncertainty — you can fill a void but also start a business that has what it takes to stand the test of time. You can start by considering how a subscription box business differs from your current model (e.g. timely and regular deliveries will need to be made). You will also need to ensure you have all the value-added elements that make subscription boxes so successful in the first place. Getting your costs, pricing and profit margins in line are important, as is ticking all the legal boxes and creating a sound marketing strategy.
Before you make your first shipment, you will also need to test-run your concept. To find out all the detailed steps involved in launching a subscription company, check out this foolproof guide.