Back in January we made our #9 Top Trend Predictions for 2020.
Prediction #2 was Retail Becomes Subscription.
Our observation was that sustainability-focused consumers are increasingly preferring to rent or swap items, rather than buying them outright.
Our evidence was that brands like H&M is trialling the rental of clothes in its flagship store in Stockholm and Ikea is rumoured to be considering a trial for furniture. AO already renting out washing machines and Adidas is asking consumers to return worn-out trainers for upgrade to the newest model.
Our conclusion was that the future of retail for products may be to become a lot more like services!
CB Insights have just published a report that suggests this was just the tip of the iceberg …
- The car industry is being reinvented by brands like Audi, BMW, Cadillac, Jaguar Land Rover, Mercedes-Benz, and Volvo have all introduced subscription-based models
- The airline industry is being disrupted by carriers like Surf Air and Flyline
- In-home fitness brands like Peloton, Mirror and Tonal
- Health and Wellness by FitBit, Sleep Cycle, Headspace and Happify
CB Insights identify 7 categories where subscription models are already having an impact
Implication: Can you create a service line from your portfolio? The key advantages will be retaining customers’ loyalty and product relevance.