FROM SUBSCRIPTION TO PRESCRIPTION

KANTAR RETAIL OMNISHOPPER FORUMMarch, 2016

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Subscriptions Today

Subscription-Changing Technologies

Subscriptions Tomorrow

AGENDA

SUBSCRIPTIONS TODAY

4

How many subscription categories exist?

POP QUIZ!

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POP QUIZ!Women

Men

Beauty

Fitness

Drinks

Kids

Babies

Moms

Food

ArtisanPets

Craft

Eco

Adult

Source: MySubscriptionAddiction

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What is the most expensive subscription service?

POP QUIZ!

7Source: MySubscriptionAddiction

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Which subscriptions are most popular, and why?

POP QUIZ!

9Source: MySubscriptionAddiction

WHY SUBSCRIPTIONS?

10Necessity

Indulgence

Value exchange

Convenience

Confidence

Customization

Connectivity

Savings Experience

• Subscription merchants experienced heavy shopping on Cyber Monday with same-store sales increasing by 83 percent on Cyber Monday 2015 compared to the previous year.

• Looking at the entire four-day period starting with Black Friday and ending on Cyber Monday 2015, same-store sales grew 70 percent from the previous year.

Source: Recurly

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WHO DOES IT WELL?

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WHO DOES IT WELL?

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WHO DOES IT WELL?

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WHERE’S THE GROWTH?

SUBSCRIPTION-CHANGING TECHNOLOGIES

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NEW USES OF DATA!

New Context• Personality• Current Emotion• Physical state /

health• Recently New

Habits / Behaviors

Emerging Channels – In-Home• In-home devices / IoT: Echo/Dash/New

Sensors (Light, Temperature, Chemicals, Movement)

• Delivery / retail commerce• Subscriptions / Auto-replenishment• Top Home Web Properties (Search /

Weather / Entertainment / Utilities)

Maturing Digital Shopper Channels• Email• Social placements and platforms• Influencer campaigns• Display• Paid search• Promotional microsites and brand

pages• Third-party deal and coupon sites• Retail media networks

Emerging Channels – In-Store• IR / smart cameras• Kiosk• Smart shelves• Self check-out / smart POS• Click-and-collect• In-store Mode

Emerging Channels – On-the-Go• Shopping List • Application In-store mode• M-wallet / M-payments• M-loyalty• Scanning / Identity Recognition• Micro-Geolocation• Product/Category Mobile Search• App Category Navigation• Wearables

Emerging Shopper Segments

• Hyper-Local• Shoppertainment• Ultra Cost-

Conscious• In-store/Pickup

Hybrid• Gen Z

Traditional Segments• Shopper Category• Lifestyle• Lifestage• Occupation• Affinity

SUBSCRIPTIONS TOMORROW

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• Increasingly viable option for brands and CRM programs• Agencies are waking up to the model as trial and relationship driver• Infrastructure services, DIY templates and vendor support make it easier

than ever. • Mobile-specific programs become the norm. • From sample sizes to larger items• More local items and services• “Surprise” shipments give way to multiple subscription choices • Beyond the Box: premium content and community• Premium boxes as brand extensions

SUBSCRIPTIONS IN 2016

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INTELLIGENT

+

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DYNAMIC

+

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COMMUNAL

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MULTI-LEVEL

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THANK YOU!

Q&A