What Happened
Leading shaving razor brand Gillette is expanding its subscription service to the U.K. as it looks to foster long-term customer loyalty with its subscription business. Gillette first launched the service in June 2014 in the U.S. as a response to the market disruption caused by the likes of Dollar Shave Club and Harry’s. The Gillette Shave Club offers free shipping and includes a loyalty program that rewards consumers for purchases.
What Brands Need To Do
In recent years, selling subscription-based access to content, products, or services has quickly become an even more popular business model adopted by a number of brands in various industries. Gillette is just one of the CPG brands that has embraced this type of direct selling model, cultivating a more direct relationship with their customers. As consumers’ shopping habits evolve, more retail and CPG brands should consider trying out the subscription model to cultivate customer loyalty.
For more on how brands can better build relationships with consumers through multiple touchpoints and channels, check out the Boundless Retail section in our Outlook 2016.
Source: Brand Channel
