On August 12th we saw Nike launch its sneaker-as-a-service subscription shoe service, dubbed Nike Adventure Club, for kiddos with style. The following week, Banana Republic dropped into the space with Style Passport — a monthly service the company is counting on to appeal to younger female customers after seeing a tough first quarter with same-store sales falling three percent.
But will a rental subscription program lift Banana’s results? We’ve seen companies thrive exclusively off the model (think Trunk Club, Rent the Runway, and Athleta) with other classic brick and mortars like Macy’s and American Eagle following suit — which makes us wonder: are we in an era of “the end of ownership”?
The results of an international survey conducted by the Harris Poll on behalf of Zuora say it could be so. The study found that 57% of the people surveyed wished they could own less items, which means six out of every 10 people globally don’t want to own things anymore. The poll also found that 70% of people believe subscriptions free them from the burden of ownership.
We called in ProfitWell Subscription Retention Specialist Lauren Romanish to weigh in.
"These retailers have absolutely streamlined reducing friction like never before."
And as Zuora’s Founder Tien Tzuo preaches to his core — people want services over products — a statement you know we’re unapologetically on board with. And with this steady rise of subscription in retail, services they shall get.
And that’s a wrap for your August 26th subscription news. We’ll catch ya back here tomorrow, where we do it all again. To recruit your friends into the subscription know, send them to profitwell.com/recur/recurnow to sign up for episodes on the daily.