Subscription services have now become an indispensable part of everyday life. No longer confined to milk delivery and newspaper orders, they are ubiquitous in nearly every industry. The prevalence of such a trend has given rise to the term “subscription economy.”
A subscription economy is a market economy where consumers use services regularly after paying a fee. We can attribute the growth of the subscription economy to its widespread acceptance and popularity, as well as efforts made by corporations to dominate the subscription market. For corporations, subscriptions are appealing because they offer a steady source of revenue from a fixed consumer base.
The size of Korea’s subscription economy exceeded W40 trillion in 2020. Experts estimate it to reach W100 trillion by 2025. Corporations are preparing for such a boom by offering even more “subscription services.”
For one, delivery service firm “Yogiyo,” has become the first in the industry to introduce “delivery fee subscriptions.” The service allows people to get unlimited free deliveries when they order over a minimum price and pay a monthly fee of W9,900.
The pet industry has begun offering subscription services for selling pet goods. One highly sought-after service is “BACONBOX,” which delivers handmade snacks, toys, and other pet supplies in a box every month.
It’s not just pets, however, that receive monthly boxes. SONOKONG has released a “level-up box,” which provides customized recreational products for children every three months. SONOKONG put together the products with children’s development in mind.
Serena Park Staff Reporter
1. What is the definition of a subscription economy?
2. Why are subscriptions appealing to corporations?
3. What are some reasons behind the growth of the subscription economy?
1. What factors have contributed to the rise of the subscription economy in various industries?
2. What strategies can companies employ to successfully dominate the subscription market?
3. What are the advantages and disadvantages of the subscription economy for consumers?
4. In what ways can the subscription economy impact consumer behavior and purchasing habits?
Subscription services have now become an indispensable part of everyday life. No longer confined to milk delivery and newspaper orders, they are ubiquitous in nearly every industry. The prevalence of such a trend has given rise to the term “subscription economy.”
