Inside Outdoor Magazine

SPRING 2018 | Inside Outdoor 37 models or are there simply limitations to the overall concept? Currently, McKinsey & Company estimates that about 15 percent of on- line shoppers subscribe to some type of box-delivered service. These sub- scribers tend to be younger urbanites with money. “Compared with the gen- eral U.S. population, they are more likely to be 25 to 44 years old, to have incomes from $50,000 to $100,000, and to live in urban environments in the Northeastern United States,” the report stated. A 2016 study from so- cial listening research firm Crimson Hexagon, it should be noted, found subscribers to be overwhelmingly 35-years-old and above. In both the studies, the subscrip- tion box model was particularly ap- pealing to women, who accounted for 60 percent of subscribers in the McKinsey & Company survey, and who generated three-quarters of the online conversations surround- ing subscription boxes as tracked by Crimson Hexagon. Interestingly enough, however, male subscribers might be more enthusiastic about this type of automated purchasing. While the median number of subscriptions an active subscriber holds is two, with nearly 35 percent having three or more, male shoppers are more likely than women to have three or more active subscriptions – 42 per- cent versus 28 percent, respectively. Overall, McKinsey & Company identifies three broad types of sub- scription services. “Replenishment” subscriptions automate the purchase of everyday, commodity items, such as razors or diapers. “Curation” sub- scriptions, meanwhile, seek to “sur- prise and delight” through “personal- ized experiences” in segments such as apparel, cosmetics, jewelry and food. Finally, “access” subscribers pay the monthly fee to access lower prices or members-only perks – again appar- el and food are big categories here. Curation services are by far the most popular, accounting for 55 per- cent of total subscriptions, “suggest- ing a strong desire for personalized services,” say McKinsey & Company researchers. Replenishment accounts for 32 percent of subscriptions and access subscriptions for 13 percent. In early 2014, the outdoor industry got its own version with Cairn, targeted to outdoor recreationist. Cairn could be categorized under curation: open a box of recreational goodies tailored to your favorite type of outing, and get them at a good price. During the past five years, the in- dustry in whole has exploded, growing by as much as 200 percent a year, according to Harvard Business Re- view . The largest of such retailers on Internet Retailer ’s list of the top 500 web merchants generated more than $2.6 billion in sales in 2016, up from a mere $57.0 million in 2011. By the end 2017, there were some 11 million box subscribers, says HBR, and more than two thousand business-to-con- sumer subscription brands capitalizing on customers’ diverse tastes. Largely fueled by venture-capital investments, start-ups have launched these e-commerce subscription busi- nesses in a wide range of categories, very from large to niche, includ- ing pet food, vitamins, apparel and footwear, beer and wine, children Where Do You Stand with Your Omni-channel Efforts? Omnicha nel Capabilities that Retallers Worldwide Currently Have vs. Plan to Implement, by Timeframe, Sep 2017 Currently have Plan to Implement within 6 months Plan to Implement withn 12 moths Plan to implement later than 12 months No plans to implements Cross-channel returns or exchanges 38% 14% 10% 5% 33% Personalized customer communications 37% 16% 19% 14% 14% Unified customer account and order history across channels 33% 12% 24% 14% 17% Making in-store inventory visible online 28% 16% 14% 12% 30% In-store digital receipts 27% 10% 17% 12% 34% ‘Click & Collect’ or similar 26% 14 % 19% 9% 33% Inventory as fully available to all channel from one location 26% 14% 21% 14% 26% Delivering a seamless and 25% 30% 23% 11% 11% 1 1 2 3 4 5 2 3 4 5 APPAREL SOURCING & PRODUCTION INDIA VIETNAM CHINA HONG KONG USA Quickfeat produces sweaters, knits, wovens outerwear, activewear, leather, swim and organics. Our Services - Fabric Sourcing - Trim Sourcing - Garment Development - Factory Sourcing - Production - Quality Control - Packing & Logistics 541 350 1615 Marketing O ice Bend, Oregon USA info@quickfeat.com | www.quickfeat.com