What: An unique Formula One experiential retail space inside Selfridges to draw in fans, collectors, and visitors.

Why it is important: Selfridges will be the first to have a location of this kind. The space will include a real F1 car that will be available for purchase, a distinguishing attraction for high-paying customers. Selfridges plans to tap into Formula One’s growing audience which has increased 13% since 2020 to a global TV audience totaling 445 million people.

Following the British Grand Prix in Silverstone, Selfridges unveils a Formula One experience to tap into the F1 frenzy. The permanent retail experience is meant to be a destination for fans, collectors, and visitors. Smarttech Retail Group and The Memento Group have linked together to include a 2022 season F1 show car with unique memorabilia and collectibles to draw interest and visitors to the Selfridges London flagship. There will also be a virtual F1 driving experience in-store.

Selfridges’ Formula One experience in London flagship

What: Ulta is bringing a curated selection of products to Allure’s in-person and online beauty stores.

Why it is important: The importance of immersive and experiential retail is demonstrated by this partnership between two beauty industry leaders, Condé Nast’s Allure magazine and Ulta Beauty.

The Ulta shop-in-shop will be open from July to September in Allure’s New York bricks-and-mortar store. This partnership will be the first time Allure has partnered with a retailer, however, they have already hosted 500 in-store events like masterclasses and panels. Along with a curation of products that change month to month, Ulta will host and plan events to generate consumer visitation.

Allure’s move to retail is representative of an increasing trend among media outlets focusing on converting readers into customers. While Ulta’s strategy is to meet customers across channels beyond traditional retail. This has been demonstrated since August 2021 as they began a rollout of Ulta shop-in-shops in Target stores across the U.S.

This partnership will expand Allure’s retail selection while widening Ulta’s audience.

Partnership between Ulta Beauty and Allure magazine’s retail store

What: Jeff Gennette on the future of stores, the point of omnichannel and what is takes to be a great leader.

Why it is important: For him, stores will never be irrelevant, however retailers need to find the method to bring the brick & mortar business to a “healthy” level.

Macy’s CEO Jeff Gennette has given a lengthy interview to Time.com in which he details his views on the future of work in department stores, the shift in consumption and the role stores will play in the future.

For him, omnichannel is of course here to stay, however stores remain a significant part of the picture: online will allow to deliver a tailor-made experience, while stores will be providing services impossible to have online (size fitting), or experiences (which explains for instance the implementation of 400 Toys “R” Us). E-commerce (35% of Macy’s business, or USD 8,6 bn in 2021) is going to continue growing, but never to the point of making stores irrelevant: he expects the share of e-commerce to top 40% by 2027.

When it comes to leadership, he advocates leaders to bring their “authentic self”, which in turn will allow their teams to do so and achieve a higher performance.

Macy’s CEO’s interview on authenticity and the future of stores 

What: Walmart is integrating its subscription services to increase the rollout of its in-home delivery.

Why it is important: As a response to Amazon Prime and its expansion into restaurant delivery subscriptions, Walmart is increasing its Walmart+ subscription service to include in-home delivery options.

Walmart+ subscribers who opt for the InHome service allow a Walmart driver to access their home while they are out with a single-use code to put their purchases inside the customer’s home. Workers record the delivery process with a vest-mounted camera, and customers can access the footage for up to a week.

Walmart has also teamed up with tech startup HomeValet to offer an alternative in-home delivery by selling temperature-controlled storage units that can be placed outside a customer’s home. This will allow delivery workers to leave groceries securely without entering the premises.

Walmart merges in-home grocery delivery service with Walmart+

What: Harrods has delayed its famed summer sale as the new season’s goods have been caught up in global supply-chain snags, according to the London luxury emporium’s managing director.

Why it is important: Harrods’ supply chain is running two to three weeks behind where it should be and a example of that is they’ve just delayed the summer sale for two weeks because they require another 10% of new-season stock to be able to function into the new year.

Harrods delays summer sale as new season’s goods slow to arrive

What: The store's largest collection of exclusive designer collaborations will central to the celebration.

Why is it important: Bloomingdale’s team is organizing new kinds of shopping experiences, exclusive luxury product collaborations, pop-ups and special events revolving around its milestone, beginning in September and running through the 2022 holiday season.

With the 150th campaign, Bloomingdale’s aims to sustain its momentum of the last several seasons.

Among the upcoming components of the 150th anniversary campaign:

• A Bloomingdale’s 150th anniversary collection of limited-edition designer collaborations, its biggest to-date, including more than 300 exclusive products and styles developed in partnership with top brands and designers, including special luxury selections, across women’s and men’s fashion, accessories, beauty, home, fine jewelry and other categories.
• A series of private and public events, pop-ups and original shopping experiences at locations across the country.
• Dedicated 150th anniversary branding integrated into consumer experiences including limited-edition anniversary merchandise collections, and a digital experience.
• Partnerships with organizations, landmarks and institutions to give back and support communities.

Bloomingdale’s celebrates 150 years with a birthday blowout

What:  Stockmann celebrates its 160th birthday with a nationwide exhibition.

Why it is important: The company has undergone some serious issues in 2019 – 2021, with a bankruptcy process and the sale of almost all its real estate, in addition to the war in Ukraine which has had some consequences on its partnership with the Stockmann Russian operator. It is therefore key to relay positive messages.

Stockmann, which celebrates its 160th birthday, has opened an exhibition showing the history of the company (which has become a stapple for all Finns) in the Helsinki department store. The exhibition will then be touring Finland in 5 other company’s stores.

The exhibition features memorabilia as well as historical pictures.

Stockmann opens a touring history exhibition in its department stores 

What: GMG has launched a new Nike concept store in Hong Kong as part of its plans to ramp up its investment in Asia.

Why it is important: This investment comes at a time when the business is especially difficult in Hong Kong. This could explain why Nike is not operating directly according to its global DTC startegy.

The store, which spans over 2171sqft in the East Point City shopping mall in Hang Tau district, sells sportswear for men and women in various categories including running, training and basketball.

GMG has partnered with Nike since 1982 in other markets. The company entered Asia in 2020 after buying Royal Sporting House, a leading multi-sports retailer and recently bought Nike retail stores from SUTL Corporation, expanding its presence in Singapore and Malaysia. The group currently operates more than 25 Nike stores in Asia, including 11 stores in Hong Kong, and represents 120 brands across the Middle East, North Africa, and Asia, including Under Armour and Timberland.

GMG sees Asia as a significant potential market, with Hong Kong’s sports and outdoor category predicted to reach 2.3 million consumers during the next three years.

Deputy chairman and CEO at GMC explains that “Asia is propelling the retail industry forward, generating a substantial portion of global growth in the sector and offering immense potential and expansion opportunities for GMC.”

“The opening of our new Nike store in a key market such as Hong Kong, the first in two years, further signifies the recovery of a post-pandemic economy while allowing us to strengthen our physical retail presence in Asia and empower even more people to embrace an active and healthy lifestyle.”

Nike concept store opens in Hong Kong 

What: South Korea’s duty-free shops are starting to see their long-awaited business recovery with a growing number of group tours.

Why it is important: According to a Lotte Duty Free official, some 150 tourists from Malaysia shopped at the Myeongdong branch for an hour on Tuesday before returning to their country.

Some 170 Thai tourists flew in on Monday to Jeju Island and shopped at Lotte and Shilla Duty Free shops. Jeju and Yangyang International Airports have resumed the visa-waiver program that has been suspended for over two years due to the COVID-19 outbreak.

Shinsegae Duty Free said approximately 30 tourists from Vietnam visited its Myeongdong branch on May 27.

Amid growing expectations for a revitalization of the group tour business, which accounts for 80% percent of total duty-free sales, stores are rushing to make renovations.

Lotte Duty Free Myeongdong recently installed three additional elevators exclusively for duty-free customers. Shinsegae Duty Free Myeongdong has completed renovation work of stores that sell electronic appliances and food products.

The South Korean government will lift a seven-day quarantine mandate for unvaccinated arrivals from overseas. It will also normalize the number of international flights and scrap the curfew for late night and early morning flights at Incheon International Airport.

Tourism: group tours to resume?

What: The new 12,000 sqm store in Liverpool will open on June 23.

Why it is important: This unit, which bears the name of a retailer but is operated by an hospitality operator, will be as much about retail than leisure and entertainment.

The new Flannels store in Liverpool is scheduled to open on June 23. We already reported the partnership with Barry’s here, on a total surface of 700 sqm, out of a total 12,000 sqm surface for the entire store.

More partnerships are announced, with the opening of a series of restaurants, which makes sense as the operations are held by Zanna Hospitality Group, which owns a dozen or so of F&B concepts.

The new Flannels Liverpool store has an opening date 

What:  GDR pays a visit to the newly opened Wow Concept store in Madrid.

Why it is important:  Experience and visual impact are supposed to be the magic key to attracting millennials… but spectacular stores also have to be profitable, which is another story.

GDR paid a visit to the new WOW Concept store which former El Corte Inglés CEO Dimas Gimeno just opened in Madrid in March over 5,500 sqm. Interestingly, they draw some conclusions that are not in line with the promises made in the press release of the company.

The reporter mentioned that the visual aspect of the store was astonishing, with a strong and impactful visual merchandising. For him, this is the proof that stores, if inspiring, are here to stay, but between the lines he also wonders if many of the visitors were really buying something or taking pictures.

The omnichannel approach is at the heart of this concept, by asking customers to buy on digital screens (there are no checkouts). This allows to present more brands online 250 than actually physically displayed (150). One may wonder however the efficiency of this setup knowing that it is difficult to sell something that is only presented online (as the article suggests that different products are presented online, not just simple color variations of products on display).

Finally, to keep the buzz, the store has also been designed to be always exciting through a permanent popup approach (just like Showfields), the possibility to also navigate in the metaverse, and the opening of a social space dedicated to local communities in order to foster conversations. Since the store is not fully functional yet, the reporter did not have the possibility to make himself an opinion.

A visit at Wow Concept store in Madrid 

What: Bernstein expects luxury demand to go back to an even keel and growth trajectory in China.

Why is it important: China’s strict COVID-19 restrictions led to a 6.7% year-over-year decline in retail sales of consumer goods in May, to 3.35 trillion renminbi.

The contraction in May was better than in April, which logged an 11.1% dip from the prior year. In the period between January and May, China’s retail sales of consumer goods were 17.17 trillion renminbi, down 1.5% from the same period in 2021, when the country enjoyed relatively robust growth while other economies struggled due to COVID-19 outbreaks.

In the past month, the Chinese government has been adjusting its dynamic-zero COVD-19 policy and announced a broad package of economic support measures to stimulate the economy.

A Bernstein report published Thursday predicts that the luxury and beauty industry will bounce back quicker than those catering to the mass market in China. Chanel, Louis Vuitton, Hermès and Dior were among the first to recover. Local media reported that long lines formed outside their stores in Shanghai’s luxury shopping mall Plaza 66 on the first day they reopened on May 29, after the city came out of the lockdown.

It’s also been reported in the local media that luxury brands in Shanghai were coming up with creative ways to entice high-spending customers during the lockdown, such as sending fancy takeaway meals and putting rare bags worth more than 100,000 renminbi on delivery platforms.

Companies with robust China supply chains like L’Oréal and Proya are gaining share during disruptions, while companies with supply chains disrupted by Shanghai lockdowns, including Estée Lauder and Shiseido, may see slow shipment recovery in the second quarter, despite strong online sell-through.

With regard to the broader apparel and footwear sectors, Bernstein suggests there will be a bounceback as restrictions ease, led by e-commerce, as China distribution centers and last-mile delivery are back on track, while in-store recovery will be slower as people remain nervous about going back to stores until mass testing eases.

China’s demand for luxury is back 

What: Cognac brand Hennessy will launch a permanent retail shop in London department store Harrods next week, with an exclusive ‘one-of-a-kind’ bottling up for grabs.

Why it is important: The brand’s first standalone Hennessy Boutique will open in early June 2022 on the lower ground floor of the department store in London’s Knightsbridge.

The boutique will feature the brand’s entire collection, including rare Cognac blend Hennessy Paradis.

Hennessy will also unveil a new expression, crafted exclusively for Harrods using some of its rarest eaux-de-vie. It will be presented in a limited edition dame jeanne bottle, created in collaboration with artist Nelly Saunier.

The boutique will also provide an exclusive personalisation service, called Hennessy Hands. The service will offer leather bottle tags that can be added to the neck of a bottle, and a collection of personalised and handmade options and colours, including embossed gold or silver initials.

Harrods to open Hennessy boutique

What: Zalando is looking to go bigger in streetwear and has bought a majority stake in Highsnobiety, the media brand at the crossroads of streetwear and luxury.

What it is important: Highsnobiety will act as a strategic and creative consultant to Zalando, but also “retain its editorial independence, with creative agency work remaining fully autonomous and management structure unchanged.”

Highsnobiety’s art of turning stories into products and products into stories, will bring Zalando these capabilities to their commitment toward fashion inspiration, and together they can reimagine the future of content and commerce. Zalando’s unrivaled expertise in scaling e-commerce platforms will bring Highsnobiety to the next level.

For the deal between Highsnobiety and Zalando, Highsnobiety was advised by Liontree, V14 – Vogel, Heerma & Waitz, and Taxess. Zalando was advised by White&Case, PwC, and McKinsey.

Zalando buys control of Highsnobiety 

What: Major retailers may be on an Amazon-like path when it comes to returns, allowing customers to keep refunded merchandise.

Why it is important: With fuel prices at record highs and ongoing supply chain turmoil, retailers are struggling to adapt and are doing whatever they can to lessen the pressure on themselves.

Retailers are struggling with excess inventory, and sorting it all comes at a high price. Returns add a significant burden to that storage challenge. According to a survey by the National Retail Federation and Appriss Retail, retail returns hit an average of 16.6% in 2021 — up from 10.6% the year prior — adding up to more than $761 billion of merchandise that's likely to end up back in stores and warehouses.

Target, Walmart, Gap, and American Eagle Outfitters are among the retailers that are toying with the idea of letting customers keep refunded merchandise, following Amazon’s ‘returnless retuen’ policy for cheaper items years ago.

Target and Walmart are considering dramatic return-policy changes

What: Browns focus continues to support London’s new and emerging designers

Why is it important: The boutique “Browns Focus: Series Two” will spotlight seven fashion designers. Each designer has curated an exclusive capsule collection for the brand that’s available from Thursday online and in-store at Browns East.

The London boutique has partnered with Black-owned art space Home by Ronan Mckenzie and R.O.T.A., a Browns-created community with a mission to achieve diversity and representation across the business.

Browns Focus made a comeback last year, where designers were given creative control to produce small collections and visual imagery that best represented them and their community.

Browns has been instrumental in underpinning the future brands of tomorrow by mentoring talent with substantial sustainable and inclusive credentials. They were one of the early stockists to take Bethanny Williams under their wing.

Browns continue to support young fashion designers

What: Neiman Marcus says innovative immersive store experiences are planned for over the next 18 months.

Why is it important: While many retailers embrace a digital-first identity, Neiman Marcus is touting its blueprint for “retail-tainment.” It is about “reimagining” store experiences, and it entails working with brands and designers to come up with more imaginative and often complex experiences and presentations for shoppers that go beyond the usual retail theater.

The onset of the strategy started with the three-week Prada Coast installation at the Neiman Marcus store in the NorthPark Center in Dallas in June 2021. The setup was elaborate, recreating an Italian beach, with LED walls with live crashing ocean waves, sand, lifeguards, gelato and Prada’s summer collection set in a 2,200-square-foot installation on the main floor.

On Thursday, Neiman’s unveils a Burberry takeover at its store in the Lenox Square mall in Atlanta. The exterior has been wrapped with Burberry’s TB monogram print and more than 50 styles in men’s, women’s and accessories, all exclusive to Neiman’s, are displayed inside.

Neiman’s retail-tainment strategy has been resonating with shoppers and benefited from consumers’ renewed interest in shopping stores. Whether that endures or is just a short-term reaction by consumers after being cooped up at home during COVID-19 remains to be seen.

Neiman Marcus’ latest calling: ‘Retail-tainment’ 

Neiman Marcus welcomes Burberry's summer takeover

What: Inflation is affecting the purchase of sustainable goods but luxury continues to grow.

Why it is important: Financial anxiety is a top concern in updated data released from Deloitte’s Global State of the Consumer Tracker project that explores consumer priorities on a monthly basis. Concerns about high prices were expressed by over 80% of respondents in both the US and the UK as of May.

Consumers skipped sustainable options as 41% deemed them too costly, 24% responded that sustainable products were not a priority, and 13% cited unwillingness to wait longer to obtain such products.

Even though inflated prices are a top concern worldwide, the luxury sector appears immune. American consulting firm Bain released that global luxury goods sales are set to rise at least 5% this year to 320 billion dollars in the conservative version of their estimation.

Luxury sales have remained strong during the pandemic recovery due to demand in Europe and the US. In 2021, the US was the single largest national luxury market, even as Forbes noted that luxury fashion brands like Louis Vuitton, Hermès, and Chanel raised prices substantially, without much consumer resistance thus far.

There are thousands of independent brands and emerging designers around the world operating more and more sustainably from inception: they source locally while supporting regional ecosystems, upcycle materials, use dyes with natural ingredients, produce less waste due to their size, represent a more diverse range of creators and workers, and yes, their items typically cost more than similar alternatives.

During the height of the pandemic in 2020, all businesses suffered setbacks as entire economies shut down, the independent brands, even faced bankruptcy. 40% of the members of the Council of Fashion Designers of America (CFDA) were brands worth under USD 1 million. In contrast, a brand like Chanel had an operating profit of USD 2.05 billion that year, even after a 41% decline from suspended operations.

If the world economy shrinks, it will likely be the less recognizable independent brands, the emerging talents of the industry who take the largest hit again, especially those, as indicated in the Global State of the Consumer Tracker, who use responsibly made materials with fewer environmental impacts that cost more, as all brands large and small are implored to do to reduce emissions.

Quality and sustainability have taken a backseat to the desirability of high price just for the sake of it. A study that focused on consumer motivations for accepting high luxury brand prices in both Western and Eastern cultures explained “Unexpectedly, the pursuit of high quality is not a driver. Instead, obtaining status and exclusivity is what moves buyers to justify the expense, not anything about the environment.“Price functions as a fee for the right to exhibit the logo of a well-known brand and co-brand oneself.”

Sustainable goods see decline due to high cost, yet luxury sales grow

What: Due to an aggressively large over stock of retail inventories, Target is cancelling orders with suppliers and slashing prices on merchandise in store.

Why it is important: In an attempt to clear out the large inventory, the company is slashing its prices ahead of the critical upcoming fall and holiday shopping seasons.

It seems that there is a shift emerging amongst Americans as they are no longer spending on home renovations or home decor they are now shifting towards travel, night outs, etc. The shift that has emerged in Americans pivoting away from pandemic spending was laid bare in the most recent quarterly financial filings from several major retailers.

Target reported last month that its profit for the first quarter compared to the same time last year dropped by 52%.

With the decision to cut prices Target is looking to clear out the unwanted merchandise to make more room for in-demand products like groceries and makeup products.

Target is working with their suppliers to cover costs for those vendors whose orders are being cancelled.

Target is looking to clear out overstock of merchandise from shelves

What: Levi Strauss & Co and H&M Group ranked highly inThe BoF Sustainability Index 2022.

Why is it important: Every year, BoF Insights benchmarks the sustainability efforts of fashion’s biggest companies within the luxury, high street (or mass market) and sportswear segments. The index was designed to assess the fashion companies’ progress towards ambitious environmental and social targets across six impact categories, designed to align with the UN’s Sustainable Development Goals.

The 2022 edition of the Index analyses the sustainability performance at 30 of fashion’s largest public companies, addressing the 10 biggest by 2020 revenue in each of the three segments. It assesses performance across six impact categories: Emissions, Transparency, Water & Chemicals, Waste, Materials and Workers’ rights.

The high street segment was one category to note with the overall average score for the segment comes in at 27 points out of 100, Within the individual impact categories, the segment performs on par with the overall Index average in Emissions and Materials, but slightly underperforms in the four other impact categories assessed. It also contains the only company (Chinese retailer HLA Group) in the Index to score no points at all, making it one of two in this group of companies to score less than 10 points overall.

Levi Strauss & Co. tops the high street segment’s rankings with an overall score of 44 points out of 100, closely followed by H&M Group with an overall score of 42. Both companies place in the top five when ranked against all 30 companies assessed in this year’s Index.

Are mass-market fashion companies the industry’s worst sustainability performers?

What: Department stores are fewer in number, still downsizing, but not extinct.

Why it is important: Coming off recent restructurings, heady digital growth, channel integrations and a lot of introspection, the sector has turned a corner, and around the world department stores are in varying degrees of transformation.

A retail sector that’s resilient and getting progressive came across at the Global Department Store Summit, organized by the Intercontinental Group of Department Stores, this month, where presentations and conversations centered on ESG, redefining the workplace, reinvention, and renewal, not recession. Retailers’ unwavering optimism was evident, leaving looming uncertainties for the near term more on the sidelines than center stage.

The event, held June 9 and 10, was themed “Retailing From the Outside-In” and drew some 250 leaders and senior officials from department stores, brands, suppliers and service companies.

Among the key takeaways from the event:

• Department stores have a future; perceptions of being “dinosaurs” are passé.
• Environmental, social and governance is good for business; retailers and brands must simplify the language of ESG so it’s less technical and consumers can readily understand goals and accomplishments.
• In a data and digitally driven world, retail is still about providing experiences.
• Companies are grappling with how to remake the workplace with a balance of office and remote situations to attract and retain talent and get the most productivity out of the workforce.

Sizing up department stores and the survival instinct

What: ‘Buy now, pay later’ services that allow consumers to pay for purchases in installments have driven higher spending at apparel retailers in recent years, and investors worry higher interest rates and a slower economy will spell trouble for the model.

Why is it important: Concerns are growing that the boom in short-term financing that has fueled apparel sales is saddling a growing number of vulnerable shoppers with debt they can’t pay. But the concept can still benefit brands, lenders, and consumers, with a few key changes.

Despite its recent problems, the category looks set to keep growing. Earlier this week, Apple announced it was launching a BNPL service. If deployed responsibly, buy now, pay later can benefit lenders, retailers, and consumers. But changes are needed: BNPL firms can reposition their installment plans as a way for young and low-income consumers to build credit and do a better job screening out those who are most likely to fall behind on their loans. Retailers can do more than add a button from Klarna or Affirm alongside the credit and debit card options on the checkout page; they can educate consumers about how installment payments work and be as transparent about the terms of these loans as they are about shipping.

Linking BNPL with credit agencies could allow a wider group of consumers to build credit histories, which are necessary to gain access to many benefits of the financial system.

Retailers should roll out financial literacy tools to help young shoppers navigate BNPL platforms and monitor their spending, with branded education materials and budgeting tips that can be shared via their influencer partners.

At Afterpay, customers can set up budget trackers to help manage when installments are due and set up reminders ahead of their scheduled payments.

Education can be difficult when brands see BNPL primarily to nudge consumers to spend more. The wide array of plans, each with its own schedule of payments and interest rates, can also be confusing. BNPL lenders typically don’t charge interest for smaller payments made over a few weeks, but annualized rates can be as high as 30% for big-ticket items financed over months.

A Better Approach to ‘Buy Now, Pay Later’

What: Amazon will soon offer some of its first U.S. Prime Air drone deliveries to customers in Lockeford, California.

Why it is important: Prime Air will deliver packages weighing up to five pounds in less than an hour via drones, according to Amazon spokesperson Av Zammit. Once an order is placed, Amazon’s new MK27-2 drone will fly to the location, descend to the customer’s backyard, and hover at a “safe” height before releasing the package.

Benefits to Amazon delivering to a smaller community via drone. Yard space is readily available, providing a spacious drop-off point for packages. The efficiency of traditional van delivery, currently challenged by steep gas prices and a competitive labor market, is also limited in communities with low population density.

Regulatory clearance will be critical for Amazon’s drone delivery ambitions as it ramps up its operations in Lockeford and, eventually, to other areas of the country.

Amazon said it is working with the Federal Aviation Administration and local officials to obtain the necessary permissions to conduct deliveries in Lockeford. The FAA will review the plans to confirm operations abide by the National Environmental Policy Act, a regular procedure for advanced drone operations.

Amazon to start drone delivery in California

What: Report reveals a surge in the direct-to-consumer subscriptions market during the pandemic-induced e-commerce boom.

Why it is important: There are a total of 225 million subscriptions in the U.S. from USD 61 million consumers, which is 3.7 subscriptions per person. The total annual revenue of the d-to-c subscription market is now USD 27.6 billion.

The direct-to-consumer subscription model has been around since 2004 with smaller businesses using this as an opportunity to test the model out, but no massive story or success came from it. The next noticeable subscription was the launch Birchbox in 2010 which allegedly put subscription boxes on the map.

The report revealed that between 2010 and 2012, similar companies emerged, which included Ipsy, Blue Apron and Dollar Shave Club. From 2011 to 2015, d-to-c subscription companies experienced a 4,461 percent increase in revenue.

The report also analyzed the current composition of d-to-c subscriptions in the market and classified it into three segments:

• Replenishment services: (32% of the market) grocery, grooming, toiletries and pet supplies. Ex: Dollar Shave Club, Olipop, Quip
• Membership subscriptions: (13% of the market) subscription to a product plus access to membership perks. Ex: Peloton, Thrive Market, NatureBox
• Curation-type subscriptions: (55% of the market) curated monthly boxes of apparel, accessories, snacks and cosmetics. Ex: FabFitFun, Birchbox and Cratejoy

The report also provides some insight on the triggers for consumers to subscribe, to continue to pay, or unsubscribe. The triggers for remaining involved in the subscription model are mainly experience-based and financial incentives. Triggers for cancellations include a preference for buying the product on a need basis, finding a better subscription, and dissatisfaction with the product or service.

The impact of the D-to-C Subscription Market