and the consumers behind them

Transcription

1 The rise of subscription boxes and the consumers behind them John Fetto, Senior Analyst, Hitwise

2 1 Methodology 2 Industry trends 3 4 Traffic sources 5 Wrap-up Audience profiles

3 1 Methodology

4 Unique data and consumer insights Powerful combination of scale, depth and quality 8.1 million panelists 20 M sites/500 M Searches 60K consumer attributes Unlimited Audience Possibilities & Reporting Combinations 4 million mobile devices Subscription Summit

5 Hitwise subscription box industry 300 leading sites Subscription Summit

6 2 Industry trends

7 US subscription box industry Monthly visits 50,000,000 45,000,000 40,000,000 Surpassed 44 million visits in January and March Record: 45.6MM in January ,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000, % increase since ,000,000 0 Subscription Summit

8 US subscription box industry Monthly visits 50,000,000 Surpassed 44 million visits in January and March 45,000,000 10%: Yearover-year growth 2017 vs ,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, %: Yearover-year growth Q %: Yearover-year growth first 4 months of 2018 Subscription Summit

9 US subscription box industry Quarterly visitors 25,000,000 Surpassed 18.5 million visitors in Q Actual Projected 20,000,000 15,000,000 10,000,000 5,000,000 65% increase since Subscription Summit

10 Top subscription sites Number of visits in April 2018 IPSY BLUE APRON 3,316,500 4,040,757 HELLO FRESH STITCH FIX DOLLAR SHAVE CLUB 3,176,367 3,072,563 2,819, % +122% HOME CHEF FABFITFUN BIRCHBOX LOOT CRATE 2,583,352 1,895, % 1,875,711 1,565, GROVE COLLABORATIVE 1,272, % Subscription Summit

11 Top subscription sites Number of visitors in April 2018 BLUE APRON 935,599 HELLO FRESH STITCH FIX HOME CHEF DOLLAR SHAVE CLUB IPSY 819, , , , ,118 BIRCHBOX LOOT CRATE HARRY'S FABFITFUN 378, , , ,190 Subscription Summit

12 Subscription Box vs Traditional Retail match up Top subscription sites now on par with major brands (in visits) Subscription Summit

13 Category breakdown Share of subscription box sites visits/visitors, April % Visits 2% Visitors 3% 3% 17% 12% 33% 34% Food Beauty Apparel Lifestyle Pets Kids 20% 12% 37% 25% Subscription Summit

14 Category breakdown Monthly visits by sub-category, four year trend Pets Kids Lifestyle Apparel Beauty Food 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, 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% Subscription Summit

15 Food box sites: 14.4 million monthly visits/4.3 visitors Top food sites, April 2018 Blue Apron 3,316,500/23% -20% Hello Fresh 3,176,367/22% +37% Home Chef 2,583,352/19% -5% Graze 1,249,399/9% +115% Sunbasket 825,848/6% +279% Subscription Summit

16 Beauty box sites: 14.1 million monthly visits/6.4 million visitors Top beauty/grooming sites, April 2018 IPSY 4,040,757/29% -22% Dollar Shave 2,819,863/20% -7% FabFitFun 1,895,338/13% +120% Birchbox 1,875,711/13% -14% Harry's 977,970/7% -13% Subscription Summit

17 Apparel box sites: 7.1 million monthly visits/3.4 million visitors Top apparel/accessories sites, April 2018 Stitch Fix +22% 3,072,563 /43% Dia 808,609 /11% +65% Bespoke Post 723,571 /10% +8% Gwynnie Bee 575,320 /8% +48% Le Tote 471,723 /7% +220% Subscription Summit

18 Lifestyle box sites: 5.3 million monthly visits/2.3 million visitors Top lifestyle sites, April 2018 Loot Crate 1,565,124 /29% -28% Grove Collaborative 1,272,975 /24% +191% Mystery Tackle Box 520,770 /10% +69% Care/of 193,497 /4% NEW Battlbox 139,085/3% +43% Subscription Summit

19 Pet box sites: 960K monthly visits/551k visitors Top pet sites, April 2018 Bark Box 633,075 /66% -5% Bully Make 207,950 /22% +258% Cat Lady Box 53,425 /6% +7% Kitnip Box 31,597 /3% -29% Meow Box 27,629/3% +34% Subscription Summit

20 Kids box sites: 886K monthly visits/530k visitors Top kids sites, April 2018 Kiwi Co 441,844 /50% +16% Little Passports 213,819 /24% +63% Raddish Kids 50,063 /6% +258% The Nick Box 39,484 /4% +236% Owl Crate 25,443 /3% +70% Subscription Summit

21 Overlap analysis Where are the biggest cross-sell opportunities? +5X +7X +7X +8X +5X +5X +6X +7X +6X +4X +7X +6X +7X +9X +6X +7X +7X +7X +9X +10X +8X +6X +9X +9X +6X +5X +4X +6X +10X +6X Source: Hitwise Q Icons created by: Marvdrock, Oliviu Stolan and Maria Kislitsina from Noun Project Subscription Summit

22 3 Audience profiles

23 Who are America s 18.5 MM subscription box shoppers? Audience profile: Demographics Younger Millennials (116 index) 55% Female (index 107) College degree/student (index 111/115 ) HHI $100K+ (index 108) College towns/hipster enclaves No kids (index 105) Source: Hitwise Q Subscription Summit

24 Who are America s 18.5 MM subscription box shoppers? Audience profile: Mindset I consider myself interested in the arts (index 110) I sometimes post reviews online (index 117) I tend to spend long periods of time in a store browsing (index 107) 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 pay attention to online ratings and reviews (index 118) Source: Hitwise Q Super Democrats / Mild Republican (index 111) True Foodies (index 111) Upscale Clicks (index 113) Subscription Summit

25 Who are America s 18.5 MM subscription box shoppers? Where else do they shop? Source: Hitwise Q Subscription Summit

26 Who are America s 18.5 MM subscription box shoppers? Where do they buy? 58% bought from Amazon during Q1 Source: Hitwise Q Subscription Summit

27 Who are Blue Apron s visitors What lights their fire? Even Younger Millennials index: 132 No kids/never married (index 107/112) Condo owners (index 125) 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 Q Subscription Summit

28 Blue Apron vs Hello Fresh Recipe search cookoff Whole 30 (+391%) Risotto (+221%) Easy vegetarian (+184%) Tofu (+234%) Quiche (+129%) Sous vide (+127%) Source: Hitwise Q Subscription Summit

29 2 Traffic sources

30 Traffic drivers: Social Subscription boxes rely more heavily on social, but not as much as before 14.0% % 8.3% 7.5% Subscription boxes Retail 500 Subscription Summit

31 Traffic drivers: drives double share of traffic to subscription box sites % 9.6% 4.5% 5.3% Subscription boxes Retail 500 Subscription Summit

32 Traffic drivers: Affiliates Sub-box sites get more traffic from affiliates 2.8% % 1.7% 1.5% Subscription boxes Retail 500 Subscription Summit

33 Traffic drivers: Affiliates My Subscription Addiction drives about 1/3 of affiliate traffic Pinchme.com 2% 31% My Subscription Addiction 14% 30% Swagbucks 13% 14% My Points 2% 13% Groupon 5% 11% Subscription Summit

34 Traffic drivers: Search Search still the biggest driver of traffic but less than retail in general 46.0% 42.4% 30.8% 31.1% Subscription boxes Retail 500 Subscription Summit

35 Traffic drivers: Search 1 in every 50 searches to sub-box sites include the word best or review Subscription Summit

36 Traffic drivers: Search 1 in every 50 searches to sub-box sites include the word review or best 0.00% Best meal delivery boxes Best beauty boxes 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% Fourth of July Back to School Winter Holidays 0.00% Subscription Summit

37 Traffic drivers: Search 1 in every 400 searches to sub-box sites include the word cancel Subscription Summit

38 Traffic drivers: Search 1 in every 400 searches to sub-box sites include the word cancel Kids Apparel Pets Beauty Lifestyle Food Subscription Summit

39 Mobile share of visits Subscription boxes are ahead of the curve in the shift to mobile All sites Retail 500 Sub-box sites 47% 53% 65% Beauty: 72% Lifestyle: 68% Food: 57% Apparel: 63% Subscription Summit

40 2 Wrap up

41 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. 5 Key takeaways 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. Subscription Summit

42 Thank you! John Fetto