Subcom in a Box
Mail carriers across the globe are feeling the strain of increased package deliveries. If you’ve been keeping up to date on our blog posts, we’ve discussed this online retail boom. There are the obvious contributors such as Amazon.com, Wal-Mart, Apple and Staples, but a new category is making waves. It’s not the newest concept, but since 2010, this category has made a huge impact in how people shop. That category is subscription box services or “subcom” for short.
Birchbox. Dollar Shave Club. Plated. These subcom services differ in their products but offer a central idea. They deliver goods to millions of Americans alone on a weekly, bi-weekly or monthly basis. A customer simply enters their payment information, and like clockwork, boxes appear at the door. They only stop if the customer cancels or changes the subscription. It allows a “set and forget” type of shopping. Instead of going to the local drug store for razors, why not just pay a flat fee to have them delivered to your door once a month? And the category isn’t only limited to toiletries and food; if you can dream it, there’s a service for it.
Subcom Offers Life in a Box
Ranging from $10 and up, the subcom model was born out of convenience. No longer does one have to spend hours grocery shopping; just sign up for Blue Apron and have 3 meals delivered to your door once a week. Hate shopping for new clothes? Try Trunk Club, where clothing is handpicked by stylists for your size and tastes. Like what’s inside? They just charge your card for what you keep after mailing back the rest. No stores. No lines. No hassle.
So what does this mean for multifamily? We think the subcom model will only gain in popularity, meaning more deliveries to communities. Properties are already seeing 15% to 50% increases in deliveries with no signs of slowing down. Not all subscription box services will last but the idea is here to stay. The Blue Aprons (valued at $500 million) and Birchboxes ($96 million in sales) of the world aren’t going anywhere. Convenience is king and it doesn’t get any easier. A Millennial alone already gets 22 to 24 packages per year and being the most tech-savvy group the world has ever seen, subcom will continue to grow. If you haven’t future proofed your property yet, now might be the best time to do so.