It’s a Product World: The Evolution of the Subscription Economy

Published on January 19, 2023

Greg Harwood, Director at Simon-Kucher, interviews Board Member and Managing Partner UK & IR, Mark Billige about the changing nature of the subscription economy

 

GH: We hear a lot about the growth of subscription businesses, but are they the best approach in all cases?

MB: The future of subscription business models is currently quite polarised and the outlook depends on whether we consider ‘products’ or ‘services’.

The really new world of subscriptions has come about in products businesses and it is here that we find many examples of non-traditional subscriptions services: For products from razor blades and socks to food kits and alcohol!

Conversely, in many typical subscription dominated service businesses (e.g. gyms, mobile telephones etc.) the world is shifting away from subscriptions back to pay as you go – that’s why more than a third of us have ditched our gym memberships to join pay as you go…

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