The continued growth of subscriptions demonstrates a broader change in the consumer mindset, says Stripe’s Sarita Singh.
From Netflix and Spotify to mobile phones and even furniture and home appliances, it seems like almost everything can be accessed on a subscription basis today. for that. How about tailored meal kits for yourself - and your dog? You guessed it, there’s a subscription for those too.
However, as the subscription economy gains traction, this traditional view of ownership is being challenged. According to FT Strategies, a specialist media consultancy owned by the Financial Times, half of consumers say that subscriptions enable them to access products, services and a lifestyle that they otherwise would not have.While subscriptions may have transformed the typical shopping experience, the concept is not new.
This is fuelling the trend of “everything-as-a-service” where consumers and businesses can subscribe to services in all aspects of their lives, without huge upfront payments. But how far will this shift take us, and what could hold it back? In a rapidly changing world where lifestyles and preferences evolve, consumers appreciate the ability to switch between different products or services without long-term commitment. By lowering barriers to entry, particularly for expensive items like electronics or luxury goods, subscriptions also help democratise access to goods and services across socioeconomic groups.
Subscribers also need to feel they’re getting their money’s worth on a regular basis, or they’ll stop paying.
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