IKEA is Venturing into Subscription Models
Wednesday, February 27th, 2019
IKEA has started renting business furniture out to Swiss companies in a first trial of their new subscription model. If proven successful, IKEA will expand this service into home furniture, making it the first mass-market household brand to offer a subscription for furniture. This will help the brand deliver on its ambitious goals to become more sustainable and green.
Today, over a quarter UK shoppers are signed up to a subscription box, spending more on them than ever before (from £18.49 in 2016 to £56 in 2017).
IKEA’s move would fit right into the changing mindset and expectations of young, urban shoppers, who are using platforms like Netflix or Spotify to gain exclusive access to content and services like Glossybox or Whisky-me to discover and trial new products. Ultimately, the service would satisfy shopper’s needs for convenience, offering them what we have called fluid commerce.
As subscription services are all about personalization and convenience, brands need to focus in on the shopper experience, ensuring long-term customer retention and, thus, profitability.
Contributed By: Lukas Quittan, Integer London