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The eCommerce industry has witnessed a rapid rise in providing easy-to-use and accessible services. A surge in trends showcasing a greater focus on enhancing customer experiences has also thus emerged.
Subscription services have been part and parcel of the industry since its early days, but it is only recently that eCommerce companies have been leveraging subscription boxes to their fullest.
To know just how big the subscription box industry is, one needs to merely take a look at the survey conducted by WestMonroe titled ‘‘The State of Subscription Services Spending".
According to this survey, 84% of people underestimated how much they are spending on monthly subscriptions, with the average monthly spend on subscription services being $273.
In the UK, subscription boxes are pretty common, and research by Whistl showcases that it is more likely to be used by females (45%) than males (30%).
Younger audiences below the age of 30 are more likely to be using at least one subscription service, while the tendency is less common among those in the older age groups.
As competition in the eCommerce space increases, brands need to embrace offerings that allow customers to use their services while paying a small premium each month. This can not just help eCommerce companies promote their brand but also help generate additional leads.
To this end, let's explore the top Subscription Box companies in the UK by revenue.
Founder: Jeff Bezos
Year Founded: 1994
Location: London, United Kingdom
Amazon UK's Monthly unique visitors: 31,933,172
Amazon UK's Order volume: 50,000+
Amazon UK's Web sales: More than $5B
Amazon.co.uk is the UK subsidiary of the global technology giant.
In addition to its eCommerce business, the company also has a presence in the digital streaming, cloud computing, and artificial intelligence niches while having its own products like Kindle, Amazon Echo, etc., catered to specific consumer groups.
Source- Amazon's annual net sales in the United Kingdom (UK) from 2010 to 2021 (in million US dollars)
Amazon UK's sales leaped from £19.6B ($26.5B) in 2020 to £23.6B ($31.9B) in 2021.
Amazon offers several subscription box options involving its services and products, with the Prime subscription being the most popular.
Founder: Natalie Massenet
Year Founded: 2000
Location: London, United Kingdom
Net-a-Porter's Monthly unique visitors: 1,485,399
Net-a-Porter's Order volume: 50,000+
Net-a-Porter's Web sales: $500M - $1B
Net-a-Porter is one of the UK’s luxury fashion brands that offer over 800 designer brands on its platform.
The brand sells a curated set of products and content through its website and online app, including the popular Net-a-Porter Beauty Kits that are renowned for their product range.
In 2018, the brand became part of the luxury conglomerate Richemont, valuing Yoox Net-a-Porter at €5.3B.
Founder: Daniel Crown
Year Founded: 1978
Location: Northwich, Cheshire, United Kingdom
LookFantastic's Monthly unique visitors: 592,907
LookFantastic's Order volume: 10,000 - 50,000
LookFantastic's Web sales: $250M - $500M
One of Europe’s premium online beauty retailers, LookFantastic is a one-stop shop for all beauty needs and offers 22K+ products with complimentary worldwide shipping to 200+ countries.
The brand generated a revenue of $123.9M in 2021, growing by 40% year-on-year in the last four years.
The brand offers various gift and subscription boxes, including monthly subscriptions and limited-edition boxes that allow its customers to discover a range of premium products.
Founders: Simon Douglas and Steve Peckham
Year Founded: 2007
Location: Northwich, Cheshire, United Kingdom
Zavvi's Monthly unique visitors: 232,157
Zavvi's Web sales: $100M - $250M
Zavvi is an arts and entertainment retailer with a strong online presence that sells party and event-related products.
The brand was purchased by The Hut Group in 2009, and has since grown considerably, with its current revenue being $104M.
The brand offers multiple gift and mystery box options, with the most popular being the Mystery Box made for Geeks, which includes exclusive merchandise and products.
Founder: L Dan
Year Founded: 2010
Location: London, United Kingdom
Lovense's Monthly unique visitors: 283,924
Lovense's Web sales: $100M - $250M
Lovense is an adult and consumer electronics retailer with an online presence. The brand offers its customers multiple subscription boxes, which include unique products and refills that customers can opt for based on their usage and behavior.
Founders: Dominik Richter, Thomas Griesel, and Jessica Nilsson
Year Founded: 2011
Location: United Kingdom
Hello Fresh's Monthly unique visitors: 267,336
Hello Fresh's Order volume: 10,000 - 50,000
Hello Fresh's Web sales: $100M - $250M
Hello Fresh is an online food and beverages retailer renowned for its curated and healthy meals, which are budget-friendly, fresh, and tasty.
Hello Fresh revenue (Statista) - premium statistic
The brand delivered over 1B meals in 2021 and made a revenue of €6B in 2021. They offer curated boxes and meal plans that include multiple options such as meat, veggie, family-friendly, and calorie-smart meals.
Hotel Chocolat's Founders: Angus Thirlwell and Peter Harris
Year Founded: 2004
Hotel Chocolat's Location: Royston, Herefordshire, United Kingdom
Hotel Chocolat's Monthly unique visitors: 406,694
Hotel Chocolat's Web sales: $100M - $250M
Hotel Chocolat specializes in the online retailing of British chocolates through its 126+ stores around the world.
The brand has carved a special niche for its unique chocolates and patisserie products, generating £142.9M in revenue in 2021, a 40% year-on-year growth compared to 2020.
The brand offers multiple subscription options for its cafe, beverages and chocolates, which customers can choose based on their preferences and usage.
Founders: John Peake, Ian Livingstone, and Steve Jackson
Year Founded: 1975
Location: Nottinghamshire, United Kingdom
Games Workshop's monthly unique visitors: 1,311,364
Games Workshop's Order volume: 10,000 - 50,000
Games Workshop's Web sales: $50M - $100M
Games Workshop is a British manufacturer of miniature wargames, best known for its gaming products, Warhammer Age of Sigmar and Warhammer 40,000.
The brand estimates revenue of £385M in 2022 while including a wide range of products, gift boxes, and subscription boxes specifically designed for the gaming community.
Founder: Zak Edwards
Year Founded: 2000
Location: Austrey, Warwickshire, United Kingdom
Prezzybox's Monthly unique visitors: 110,339
Prezzybox's Order volume: 10,000 - 50,000
Prezzybox's Web sales: $50M - $100M
Prezzybox is a gifts and novelties retailer that sells gift-related products.
The company offers multiple curated gifting options and provides subscriptions for bespoke gifts tailored based on user preference and occasion.
Founder: Hideo Matsushita
Year Founded: 1962
Location: Leeds, West Yorkshire, United Kingdom
Audio-Technica's Monthly unique visitors: 64,571
Audio-Technica's Web sales: $50M - $100M
One of the world’s largest audio products consumer brands, Audio Technica sells headphones, microphones, turntables, and cartridges, all of which focus on providing premium audio quality.
The company is renowned for its audio products and offers subscription options for its personal and commercial audio products.
As the digital space gets crowded, brands need to offer more personalized experiences to both help garner new customers and create avenues for retaining existing customers.
Subscription boxes come in all shapes and sizes and can be tailored as per the needs of the customer. By offering customers the option to choose the plan of their choice, brands can provide optimal services to their customers for which they won't mind paying a premium.
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