The subscription economy, or direct-to-consumer economy, has been a boon for brands over the last five years. But not all subscription services are alike, with different verticals facing unique challenges to prove market value and achieve successful growth.
Jim Fosina, CEO of Fosina Marketing Group and founder of subscription-based brand Amora Coffee, weighs in on how digital streaming services and D2C subscription businesses remain successful, even in the face of tough competition, and heightened customer demand.
Check out some highlights from the interview below, or click on the media player to access the full interview.
DMN: Jim, you’ve worked in the business for quite a long time now. Working in the subscription economy, and in the subscription business – tell me a little bit about where things have started, and where they are today.
Fosina: Where we see the market going today is very different where the market was going yesterday. We see that the consumer purchase behavior for a subscribe, receive, and recur, is growing and a real exponential rate. Just today, if you look from a year ago, we probably have about twice the amount of subscription offerings out there whereas a year ago, and it continues to grow a very strong. It’s a consumer purchase behavior that we seem to see happening amongst our millennial group, and now our centennial group, where a point of convenience and receiving product directly to home that has real relevance to their wants, needs and desires is a service that they are looking for. So it’s certainly on an explosive growth track.
DMN: Can we talk a little bit about the early players in the game, and how they’ve kind of set the stage for the subscription economy as a whole?
Fosina: The marketplace has really moved towards not only just a subscription type of format, and the need, want and desire, but they’re [consumers are] shopping it, and it’s becoming competitive — and you’re probably starting to see lots of price pressure out there…Some of the early trendsetters were really looking to do a “land grab,” if you would, and pick up market share. Now, I think you have a competitive set that is a really going to provide consumers different options.
DMN: What are you most excited about for the future of the subscription economy, and where do you think things are going?
Fosina: We are definitely living in a time where we haven’t seen this kind of consumer purchase behavior, this type of excitement around this consumer purchase behavior, and this type of growth in consumer purchase behavior – we haven’t seen this in a very long time, and it’s being embraced
You’re going to see the players who are highly attentive to their consumers…they’re going to be the winners. And the players who are not highly attentive, they’re going to fall by the wayside and I think you’re going to start to see some consolidation. You’re going to start seeing some companies take a head and shoulders above others.
We’re living in an amazing time for marketing and media. And any company who has a product, good or service that is replenishable in any fashion, is a candidate for bringing a good subscription to a to market.