Subscription marketing?

TheFancyAnybody recognise the white popsicle on the blue background? Yes, it’s Fancy! As some of you may have heard, it’s Pinterest’s rival, and often called as Pinterest for shopping.

So what is Fancy box subscription? Well, it’s a box that we pay monthly as the subscribers at $39 per month, excluding the shipping cost. Fancy inform that the value of the content in the box will approximately be $65 and above. There are many different famous people endorsed boxes available, such as by Pink, Jennifer Love Hewitt, Ashton Kutcher, Coco Rocha, and many more. The named celebrities will then choose the content of each monthly boxes, including cards that explain why they choose those items. Plus, we can customize the categories of items that we’d like to receive. For example, I ticked ‘fashion’, ‘homes’ and ‘gadget’ as my preferred categories.

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I received my first subscription box last week, some items I loved, and some items I wasn’t so happy with. But the excitement sort of eliminate the disliked part, interesting huh?

As human beings, we tend to collect random items that we see (impulse purchase), so why not getting them from our favorite celebs, models or even chefs?!

Well, what is it with subscription marketing that Fancy does?! Is it just another way to generate revenue? Not so sure about that. Imagine the cost of getting the celebrity endorsements that Fancy will have to pay, as well as the cost of the items. Some economies of scale might be achieved by the large amount of subscribers, but generating direct revenue out of these boxes isn’t the main purpose I suppose. From my marketing perspective, I reckon Fancy is trying to engage emotionally with its users (customers). By enabling some vague relationship to exist between the chosen celebrities/chefs/models and ourselves, we can gain value out of the box, aside from the items we receive monthly. Go check this blog called mysubscriptionaddiction, and see how addicted people can get to these boxes of surprises.

In addition, loyalty towards Fancy is also built, as customers becoming more loyal by the month. They wait with excitement for their box (some may subscribe to more than 1 box), hence their excitement in hearing from Fancy. Going further, imagine the amount of awareness those brands will gain by being in the subscription boxes. These brand awareness are enhanced by the celebrities’ explanation that is printed on cards (included in the box), about why they chose those products, i.e. showing the celebrities’ point of views towards the products. Overall, win-win for the customers, firms, celebrities, and Fancy as well!!

BUT, can Fancy keep this up int he long term? What’s the rate of people that discontinue from the subscription? Well, we’ll just have to keep an eye, and see whether this is a trending approach in building brand loyalty.

Here’s just some snapshots of my subscription box. Can’t wait for next month’s one!!

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See you on my next post! Have a great week 🙂

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11 thoughts on “Subscription marketing?

    • This strategy is sort of similar with Japanese’s traditional gift bags, with contents unknown to the buyers. Probably what make it different with Fancy is the different boxes available based on our favorite person, or perhaps our interests (e.g. food). This is a personalisation that’s done through believing that the chosen celeb will be representing the box. I just checked Bellabox, it seems that the target market is much narrower than Fancy, and the product categories are limited under women products. As with Fancy, it pretty much include every categories 🙂

    • It is a bit different, much more expensive to start with! Also Bellabox is beauty only, whereas this box seems to have more customised theme. I’d be curious to know though how much you’d actually ‘save’ after adding in the shipping costs.

      • I tried to calculate, and end up with much more costly if we’re abroad. Aside from the higher shipping fee, exchange rates highly affect this. My second month subscription ended up with much higher than last month’s, because AUD dropped last week. Now it has become way too expensive.

  1. I would be excited to think i was getting a parcel from one of my favourite celebrities! I might have to check this out.. I dont know if i’d want to part with my money every month if I didnt love and use everything in the box though. However, I do think this is a clever idea for celebrities to endorse their sponsored brands or own products!

    • If we live in the States, we might be more willing to subscribe continuously ($39 + low shipping cost domestically). I did think of this before, and perhaps the first couple of boxes will determine whether we’ll continue to subscribe for the following month. I want to see next month’s contents, and if I like them, I’ll continue. And if I dislike the contents, I might discontinue. So, there’s some trial period occurring here :).
      From your perspective of not knowing this type of subscription box marketing, what do you think about this technique in relation to Fancy’s brand?

    • Well it depends though. I subscribed to the categories that I liked, and I’m loving the mustache bag clipper and t-shirt. Other items I give them to others as gifts or just some giveaways.$39 is actually not a bad price. I liked how Fancy make this value seems to be relatively low with their explanation in their website. This indirect engagement with the celebs somehow make the cost much less in comparison to the benefits (including the items we receive).
      So for now, I’ll still be continuing my subscription, and if I dislike next week’s box contents, I might unsubscribe.
      Btw, were you not so attracted to this box solely because of the price? Or there’s some other factors that drives you away from this?

      • Hmm yea maybe because the price and another factor is the goodie itself.
        Sometimes the fact that not being able to choose my own thing to purchase makes me not trusting this kind of online shop.

        But who knows someday I might be attracted to this? 😀

      • But the thing about surprises is the excitement and curiosity attached to it. Plus, we tend to easily get bored to choose the items ourselves, plus the effort needed monthly. That’s what I think. But ppl do have different thoughts about this.
        Do try for a month if you’d like 🙂

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