Tell me what you’re subscribed to, and I’ll tell you who you are! Subscription services have become an integral part of our daily lives, and it’s almost impossible to underestimate their omnipresence. Platforms like Netflix and Spotify have revolutionized the subscription model, providing a seamless and barrier-free experience for consumers. In fact, Gartner predicts that by 2023, 75% of companies will offer subscriptions to their customers, and 27% of consumers plan to increase their spending on these services.
While fashion rental services, car subscriptions, and at-home fitness services have embraced this trend, the luxury industry has been slower to adapt. However, there are some notable examples of luxury brands that have successfully embraced subscription-based models to enhance the customer experience.
Hermès, for instance, has introduced the “Hermès Ties Society” program, which offers personalized and ultra-premium services to its members in the world of ties. By eliminating the focus on price, Hermès can direct attention towards the products, craftsmanship, and brand commitments. The program offers maintenance, repairs, and customization of tie pieces, creating a sense of exclusivity and personalized service.
Chanel, on the other hand, has launched the Atelier Beauté, a subscription service that allows customers to access and test all the brand’s products at their convenience. With data collected from the membership, Chanel can curate personalized content and experiences for its customers, creating a stronger connection and aligning with their expectations.
Subscription-based models also allow luxury brands to cultivate a sense of belonging and offer tailored experiences to their most loyal and high-spending customers. Brands like CMG Sports Club and Chanel have created exclusive spaces and events for their VIP clients, providing a higher quality and personalized experience.
The advantages of subscription-based retail for luxury brands are numerous. Not only can it drive economic performance, with customers spending more money after subscribing, but it can also foster customer loyalty, reducing visits to competing brands. Furthermore, it allows luxury brands to innovate and improve the customer experience, staying ahead in the ever-evolving retail landscape.
As the notion of ownership evolves and younger generations prioritize sustainability and experiences over material possessions, subscription-based models are inspiring luxury brands to reinvent consumption and engage with their customers in new ways.
Rémi Le Druillenec, co-founder and CEO of Héroïne and co-author of the book “Is the Store Dead?”, recognizes the potential of subscriptions in the luxury industry.
Useful links:
1. Gartner: Why Subscription Models Will Dominate Customer Relations and Business Revenue
2. Deloitte: Demystifying the Hype of Subscription
