The Facts: Retail businesses such as Kate Hudson’s retail company are adapting subscription business models, such as one’s implementing in Amazon and Netflix. Even though the same business model is being implemented the results are completely different when looking at retail verses entertainment products.

The Interesting Part: So why is it that a “copy and paste” method doesn’t work when looking at subscription business models?

My Thoughts: I mean, just the idea of there being a subscription to clothes personally just seems a little silly to me. Hearing it first from  Rohin Buttar’s blog, I was confused by the concept. The whole concept of having a subscription based business model revolves completely around the value proposition of the product itself and the consumers needs. Rohin states in his post: “all though the business model is extremely efficient, it simply is not in touch with the needs of the consumers in the market.” I could not agree more. The subscription business plan is most useful when taking away pains for the consumers.  Services such as Netflix which have continuations to their products (monthly magazines, weekly uploads to new episodes) take away the “pains” for consumers to consistently buy/ find new episodes, while rewarding them with additional free movies, and episodes of several extra shows. When looking at clothes, the way consumers buy clothes is different than the way they would buy magazines, TV shows even products from say Amazon. Even though, yes some would say there is a constant unfulfilled need to buy new clothes, clothing is unique to the buyer, which is why receiving the same subscription would not be as appealing. The most important point to learn from this, is that just because a business plan is efficient for a certain type of company in no way means it will fit every other company.