As Priyanka Vasudev observed the other day, the online retail industry is at an all-time high and its impressive ascent is showing no signs of letting up. In particular, subscription services such as JustFab (which Vasudev refers to in her blog) are positively flourishing. This is discernible just by taking into account the sheer volume of subscription services available at the present moment. From Birchbox to Ipsy to JewelMint, clearly there is profit to be made from the subscription business model.
To standard onlookers, though, it may be perplexing as to how, myself included. When these subscription retailers first started showing up everywhere online, I was dubious as to how legitimate they were. Taking into consideration what we’ve been discussing in class, though, it now makes sense to me what has occurred.
The subscription business model is booming because it truly caters to the customer. At least in regards to these recent e-retailers, each of which proffer a initial sign-up questionnaire to determine your “style profile.” It is an ingenious model as it utilizes IT in order to accumulate vital information on customers which it then harnesses in order to provide a seemingly catered shopping experience, personalized to the last detail.
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