john fetto, senior analyst, hitwise · audience profile: mindset subscription summit 2018 24 “all...
TRANSCRIPT
The rise of subscription boxes and the consumers behind themJohn Fetto, Senior Analyst, Hitwise
1Methodology
Industry trends
Audience profiles
Traffic sources
3
2
4
Wrap-up
5
1
Methodology
| 4
Unique data and consumer insightsPowerful combination of scale, depth and quality
Subscription Summit 2018
4 million mobile devices
20 M sites/500 M Searches
8.1 million panelists
60K consumer attributes
Unlimited
Audience
Possibilities &
Reporting
Combinations
|
Hitwise subscription box industry
300 leading sites
Subscription Summit 2018 5
2
Industry trends
|
US subscription box industry
Monthly visits
Subscription Summit 2018 7
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Surpassed 44 million visits in January and March
890%
increase
since 2014
Record: 45.6MM
in January 2017
|
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Surpassed 44 million visits in January and March
US subscription box industry
Monthly visits
Subscription Summit 2018 8
10%: Year-
over-year
growth 2017
vs 2016
3%: Year-
over-year
growth first 4
months of
2018
5%: Year-
over-year
growth Q4
2017
|
US subscription box industry
Quarterly visitors
Subscription Summit 2018 9
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Surpassed 18.5 million visitors in Q1 2018
Actual Projected
65%
increase
since 2016
|
Top subscription sites
Number of visits in April 2018
Subscription Summit 2018 10
1,272,975
1,565,124
1,875,711
1,895,338
2,583,352
2,819,863
3,072,563
3,176,367
3,316,500
4,040,757
GROVE COLLABORATIVE
LOOT CRATE
BIRCHBOX
FABFITFUN
HOME CHEF
DOLLAR SHAVE CLUB
STITCH FIX
HELLO FRESH
BLUE APRON
IPSY
2017
2018
+291%
+122%
+137%
+220%
|
Top subscription sites
Number of visitors in April 2018
Subscription Summit 2018 11
275,190
305,501
326,473
378,426
678,118
702,129
706,663
761,430
819,998
935,599
FABFITFUN
HARRY'S
LOOT CRATE
BIRCHBOX
IPSY
DOLLAR SHAVE CLUB
HOME CHEF
STITCH FIX
HELLO FRESH
BLUE APRON
|
Subscription Box vs Traditional Retail match up
Top subscription sites now on par with major brands (in visits)
Subscription Summit 2018 12
|
Category breakdown
Share of subscription box sites visits/visitors, April 2018
Subscription Summit 2018 13
34%
33%
17%
12%
2% 2%
Food
Beauty
Apparel
Lifestyle
Pets
Kids
25%
37%
20%
12%
3% 3%
Visits Visitors
| 14
Category breakdown
Monthly visits by sub-category, four year trend
Subscription Summit 2018
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
Pets Kids Lifestyle Apparel Beauty Food
4 year change:
• Pets: +3,533%
• Apparel: +1,137%
• Lifestyle: +1,116%
• Food: +952%
• Beauty: +519%
• Kids: +288%
1 year change:
• Kids: +24%
• Apparel: +20%
• Pets: +12%
• Lifestyle: +12%
• Food: +8%
• Beauty: -1%
|
825,848/6%
1,249,399/9%
2,583,352/19%
3,176,367/22%
3,316,500/23%
Sunbasket
Graze
Home
Chef
Hello Fresh
Blue Apron
Food box sites: 14.4 million monthly visits/4.3 visitors
Top food sites, April 2018
Subscription Summit 2018 15
+115%
-20%
+37%
-5%
+279%
|
977,970/7%
1,875,711/13%
1,895,338/13%
2,819,863/20%
4,040,757/29%
Harry's
Birchbox
FabFitFun
Dollar
Shave
IPSY
Beauty box sites: 14.1 million monthly visits/6.4 million visitors
Top beauty/grooming sites, April 2018
Subscription Summit 2018 16
-22%
-7%
+120%
-14%
-13%
|
Apparel box sites: 7.1 million monthly visits/3.4 million visitors
Top apparel/accessories sites, April 2018
Subscription Summit 2018 17
471,723 /7%
575,320 /8%
723,571 /10%
808,609 /11%
3,072,563 /43%
Le Tote
Gwynnie
Bee
Bespoke
Post
Dia
Stitch Fix +22%
+65%
+8%
+48%
+220%
|
139,085/3%
193,497 /4%
520,770 /10%
1,272,975 /24%
1,565,124 /29%
Battlbox
Care/of
Mystery Tackle Box
Grove Collaborative
Loot Crate
Lifestyle box sites: 5.3 million monthly visits/2.3 million visitors
Top lifestyle sites, April 2018
Subscription Summit 2018 18
-28%
+191%
+69%
NEW
+43%
|
27,629/3%
31,597 /3%
53,425 /6%
207,950 /22%
633,075 /66%
Meow Box
Kitnip Box
Cat Lady Box
Bully Make
Bark Box
Pet box sites: 960K monthly visits/551K visitors
Top pet sites, April 2018
Subscription Summit 2018 19
-5%
+258%
+7%
-29%
+34%
|
25,443 /3%
39,484 /4%
50,063 /6%
213,819 /24%
441,844 /50%
Owl Crate
The Nick Box
Raddish Kids
Little
Passports
Kiwi Co
Kids box sites: 886K monthly visits/530K visitors
Top kids sites, April 2018
Subscription Summit 2018 20
+258%
+63%
+16%
+236%
+70%
|
Overlap analysis
Where are the biggest cross-sell opportunities?
Subscription Summit 2018 21Icons created by: Marvdrock, Oliviu Stolan and Maria Kislitsina from Noun Project
+7X
+9X
+10X
+8X
+4X
+6X
+5X
Source: Hitwise Q1 2018
+6X
+6X+6X
+6X
+6X
+6X
+6X
+5X
+5X
+5X
+8X
+7X +7X +7X
+7X +7X
+7X
+7X
+4X
+9X
+9X
+9X +10X
3
Audience profiles
|
Who are America’s 18.5 MM subscription box shoppers?
Audience profile: Demographics
Subscription Summit 2018 23
Younger
Millennials
(116 index)
55% Female
(index 107)
College
towns/Hipster
enclaves
College
degree/student
(index 111/115 )
HHI $100K+
(index 108)
No kids
(index 105)
Source: Hitwise Q1 2018
|
“Upscale Clicks”
(index 113)
“I pay attention to
online ratings and
reviews” (index 118)
“Super
Democrats”/“Mild
Republican”
(index 111)
Who are America’s 18.5 MM subscription box shoppers?Audience profile: Mindset
Subscription Summit 2018 24
“All things being
equal, I’m more
likely to buy online
than in store”
(index 112)
“I like when websites
provide product
suggestions based on
what I’ve purchased in
the past” (index 108)
“I tend to spend
long periods of time
in a store browsing
(index 107)“I consider
myself
interested in
the arts” (index
110)
“I sometimes post
reviews online”
(index 117)
“True Foodies”
(index 111)
Source: Hitwise Q1 2018
|
Who are America’s 18.5 MM subscription box shoppers?Where else do they shop?
Subscription Summit 2018 25
Source: Hitwise Q1 2018
|
Who are America’s 18.5 MM subscription box shoppers?Where do they buy?
Subscription Summit 2018 26
58% bought from Amazon during Q1Source: Hitwise Q1 2018
|
Who are Blue Apron’s visitors
What lights their fire?
Subscription Summit 2018 27
Even Younger…
Millennials index:
132
Condo owners
(index 125)
No kids/Never
married
(index 107/112)
“I mostly
stream/download
my entertainment”
(index 122)“I enjoy eating
foreign food;” “I like
to try new drinks”
(index 110/109)
“Innovators”/
“Mavens” (index
110/106)
“Healthy Holistics”
and “Weight
Reformers” (index:
126/114)
Source: Hitwise Q1 2018
|
Blue Apron vs Hello Fresh
“Recipe” search “cookoff”
Subscription Summit 2018 28
Tofu (+234%)
Quiche (+129%)
Sous vide (+127%)
Whole 30 (+391%)
Risotto (+221%)
Easy vegetarian (+184%)
Source: Hitwise Q1 2018
|
2
Traffic sources
|
Traffic drivers: Social
Subscription boxes rely more heavily on social, but not as much as before
Subscription Summit 2018 30
14.0%
8.3%9.3%
7.5%
Subscription boxes Retail 500
2017 2018
|
Traffic drivers: Email
Email drives double share of traffic to subscription box sites
Subscription Summit 2018 31
9.1%
4.5%
9.6%
5.3%
Subscription boxes Retail 500
2017 2018
|
Traffic drivers: Affiliates
Sub-box sites get more traffic from affiliates
Subscription Summit 2018 32
1.6%1.7%
2.8%
1.5%
Subscription boxes Retail 500
2017 2018
|
Traffic drivers: Affiliates
My Subscription Addiction drives about 1/3 of affiliate traffic
Subscription Summit 2018 33
11%
2%
14%
30%
2%
5%
13%
13%
14%
31%
Groupon
My Points
Swagbucks
My Subscription
Addiction
Pinchme.com
2018 2017
|
Traffic drivers: Search
Search still the biggest driver of traffic but less than retail in general
Subscription Summit 2018 34
30.8%
46.0%
31.1%
42.4%
Subscription boxes Retail 500
|
Traffic drivers: Search
1 in every 50 searches to sub-box sites include the word “best” or “review”
Subscription Summit 2018 35
|
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Traffic drivers: Search
1 in every 50 searches to sub-box sites include the word “review” or “best”
Subscription Summit 2018 36
“Best beauty boxes”“Best meal delivery boxes”
Winter
Holidays
Fourth of
July
Back to
School
|
Traffic drivers: Search
1 in every 400 searches to sub-box sites include the word “cancel”
Subscription Summit 2018 37
|
Traffic drivers: Search
1 in every 400 searches to sub-box sites include the word “cancel”
Subscription Summit 2018 38
Kids Apparel Pets Beauty Lifestyle Food
|
Beauty: 72%
Food: 57%
Lifestyle: 68%
Apparel: 63%
47%
Mobile share of visits
Subscription boxes are ahead of the curve in the shift to mobile
Subscription Summit 2018 39
53%
All sites Sub-box sitesRetail 500
65%
|
2
Wrap up
41
5 Key takeaways
Subscription Summit 2018
1. Personalization is key. Don’t be afraid to ask for info
to help you deliver a more curated experience.
2. Keep things fresh, but offer replenishment sales and
“fan favorites.”
3. Know your audience and grow with them. Find a
niche, but don’t get stuck in it so that you can’t
expand.
4. Differentiate from Amazon!
5. Explore partnerships and affiliations to spread the
word.
6. Think mobile first.