There are now according to my own count (not comprehensive) about 141 subscription eCommerce companies in the US that send you a package of “stuff” every month – from food to cosmetics, and toys for kids to cigars.
Subscription eCommerce is the fastest growing category of eCommerce according to Internet Retailer magazine.
So will this come to India soon?
There are a couple here already, but none that can solve the logistics problems with any amount of significance.
Which sub categories are ripe for subscription commerce in India?
I think subscription commerce in apparel, books and electronics are fairly niche markets. Whereas food and snacks, daily personal needs and music might be more suited for it.
Who are the likely players? New ones or the existing players?
Given the problems of managing subscription payments monthly (some may take the entire money of the 12 month subscription upfront) I suspect most existing vendors will start to offer this as a service to their partners. Which means new providers in these categories will work with Infibeam, Flipkart, Snapdeal to fulfill their customer’s request. I think there’s room for 1 or 2 good new providers, but the markets they will target will be fairly niche.
How will the new providers manage logistics?
I think there will be a smart local+central logistics player in eCommerce who will start to work this model well and deliver the goods from a local vendor.
What do you think? Any good subscription eCommerce companies in India that you are using? Are they delivering? Are they good? Am I missing any categories?