The subscription box market - France

1.2 The global market's rapid growth

Source: ****

In ****, the market size for subscription boxes was $*.* billion. Most of this value is concentrated in the United States. Indeed, in ****, there were *,*** subscription box publishers worldwide; of these, nearly **% were based in the United States. [***] Western Europe is the second largest market.

The market size figure represents an incredibly strong growth at a CAGR of **.*% per year between **** an ****. Many factors contribute to this growth such as the personlization it brings, the fact that customers receive many products but do not have to choose themselves, and the element of unpredicatbility. [***] Keeping these factors in mind, the outlook for the market remains strongly positive as well.

Nevertheless, the figures are too low according to McKinsey. Due to the fact that certain retailers don’t disclose sales information on boxes, the market is difficult to estimate. For instance, subscription sales for companies such as Amazon, Walmart, and Sephora is hard to isolate. Hence, when attempting to factor these sales in, the aggregate market size was closer to $** to $** billion in ****.

According to the same source, in **** the largest companies based on sales were (***): HelloFresh, Stitch Fix, TechStyle, Blue Apron, Dollar Shave Club, and Ipsy. Hello Fresh jumped three spots between **** and ...

1.3 A domestic market in early stages

Touteslesbox.fr is a website which gathers all subscription box offers in France. Although it does not count as an official site of statistics, it provides a reliable proxy to the growth of the supply of boxes. Indeed, from this we can see that France is encompassed in the global market's rapid growth; in ****, the website had around *** boxes. In **** this number had grown to ***, and in **** there were more than *** boxes on offer. [***] Today, the website includes a portfolio of more than *** boxes. Below, the evolution of the subscriptions on the website is depicted. Figures for ****, ****, and **** have been calculated by taking the CAGR growth between **** and ****, equivalent to **.*%. **** is not completed, hence the figure for this year is an approximation. 

Source: ****

To estimate France's market size, we use figures from Le Figaro. From this, we learn that in **** the number of monthly subscribers were ***,*** in France, and that the average price per box hoovered around €**. To compute a market size for the year of ****, we simply multiply €** by *,***,*** (***) to obtain a market size of €***.* million in ****. However, this figure must be analysed with cautioned; first of all, the number of subscribers is rising at such a rapid pace that ...

1.4 L'impact du Covid-19

Vue d'ensemble

Dans l'ensemble, le marché des box a été peu touché par la crise mondiale liée à la pandémie. Selon certaines sources, comme Digitalmediasolutions, cette industrie est même favorisée par le contexte actuel. Cette source indique ainsi que "tout au long de cette période très incertaine pour les consommateurs, les abonnements ont pu offrir prévisibilité et commodité". De plus, cette période a permis aux entreprises de box d'innover, de s'adapter et de lancer de nouveaux produits, alors que les consommateurs ont été sensibles à ces services.

Néanmoins, les mesures sanitaires ont eu un impact négatif sur le délai de livraison ; par exemple, BirchBox (***) donne un aperçu du retard prévu dans le délai de livraison sur leur site web.

Dans l'ensemble, toutes les box ont vécu différemment la crise sanitaire, la structure de ces entreprises, les difficultés plus ou moins grandes pour réaliser la logistique propre à leurs activités (***) mais également de tension dans les chaînes de production de certains produits de beauté jugés comme "non-essentiel". À l'inverse, les box alimentaires ont pu mieux tirer leur épingle du jeu. 

Un intérêt accru ...

1.5 Entretien avec Michael Maarek, fondateur de Grenadia

Cantiane : Bonjour et bienvenue dans Vue d'Ensemble, le podcast qui vous permet de décrypter en ** minutes les enjeux d'un marché. Je m'appelle Cantiane et je suis analyste chez Businesscoot, une startup spécialisée dans les études de marché Pour ce nouvel épisode, on s'intéresse au marché des box livrés à domicile. Et pour cela, on reçoit Michaël Maarek, fondateur de Grenadia. Michaël, pour commencer, je te laisse te présenter et nous expliquer comment tu en est arrivé à travailler pour le marché des box à domicile.

Michaël : Alors, salut Cantiane ! Je suis ravi d'échanger avec toi sur le marché des box mensuelles. Je suis comme ça, a dit Michel Maarek, le fondateur de la société Grenadia. Donc, c'est un média qui comprend quatre sites Internet, deux basés en France, un au Royaume-Uni et un aux Etats-Unis. Ce sont des sites qui sont dédiés au concept des box mensuelles. Les box mensuelles dont on va parler, ce sont ces entreprises qui envoient chaque mois des produits à leurs abonnés. Et l'objectif de nos sites Internet, c'est de permettre aux internautes, aux consommateurs, de comparer les différentes offres pour choisir ...

2.1 Profile Analysis: The French Consumer

Preferences

Source: ****

In France in ****, the distribution share measured through annual sales was devoted **% to subscription boxes which included beauty products, **.*% to food, and *.*% to alcohol. In other words, consumers in France look to products which they believe will enhance their physicl appearance, such as make up or shaving kits.

According to touteslesbox.fr, the categories with the largest supply of boxes today include (***). It is pausible to assume that a larger supply of a certain category implies that demand for this category is indeed high.

Demographics

Source: ****

In ****, the largest age category of subscription box users were ** to ** year olds, who accounted for one fifth (***), these ages dominate the demand for subscription boxes. 

Moreover, from this graph we can see that there is no clear age group which stands out; between ** to ** and ** to ** usage is high. However, there seems to be a gap in France for people aged between ** and **, who only accounted for *% of users in ****. 

Finally, according to the same source, in **** women accounted for **% of purchases, whilst men only held **%. In other words, the market is heavily skewed towards women, whilst in respect to age, there are less evident patterns.

E-commerce 

Source: ****

Finally, the graph above ...

2.2 Demand Trends

Demand cyclicality is high

Source: ****

The graph above represents the proportion of searches for a given term in a given region during a specified amount of time, compared to when it was the most searched (***). Thus, a value of ** means that the keyword has been used less often in the region concerned, and a value of * means that there is insufficient data for this keyword.

From the graph above, we can see that the search interest for subscription boxes has increased slightly over the past five years. Moreover, we can see a clear cyclical trends with large spikes and drastic decreases in interest around Christmas time. Most likely, consumers purchase subscription boxes as gifts for relatives around these periods, which is why we see this increase. This being said, the search interest is not only a positive upward trend, but also the spikes around Chirstmas are relatively larger than earlier years, which supports the fact that interest regarding subscription boxes has increased.

Short product lifespan

According to Le Figaro, the lifespan for a subscription of a box in France is relatively low. The source indicates that the the average duration is *** days, or close to * months. The main reasons for unsubscribing ...

2.3 Les habitudes d'abonnement des Français

Sur le marché des box, fidéliser ses consommateurs est compliqué pour les marques : près des deux tiers des consommateurs restent abonnés moins de * mois, et ils sont moins de **% à le rester plus d'* an. La durée moyenne d'abonnement serait de *** jours. 

Durée moyenne d'abonnement sur le marché des box France, ****, en % Source: ****

En effet, les principales raisons de désabonnement sont la qualité des produits, les délais de livraison, ainsi qu'un élément d'ennui chez les clients, qui sont extrêmement exigeants en ce qui concerne les produits inclus. Il est donc essentiel pour les entreprises de veiller à ce que le client ne se lasse pas de la box en actualisant constamment son offre par l'innovation et une expérience client dynamique.

En ce qui concerne la fréquence d'utilisation des services d'abonnement par les consommateurs français, tels que les beauty box, ce taux reste relativement faible ; en ****, **.*% des répondants ont utilisé ces services moins d'une fois par an. Les abonnements sont donc souvent effectués dans des cycles de vie courts. [***]

Afin de fidéliser des clients, une étude Sia Partners de **** relève plusieurs facteurs clés : 

faciliter l'expérience d'achat, ...

3.1 Market Overview

The market for subscription boxes in France traditionally includes small niched players. Indeed, when examining toutelesboxes.fr's supply of boxes we find that smaller brands are in top of demand. Apart from the internationally renowned BirchBox, we find that the most popular boxes often include smaller players such as AuFeminin, Le Petit Ballon, La Thé Box, etc.

Nevertheless, as the market is growing, an increasing number of players want to benefit from this leverage. Larger brands such as Nespresso and Respire are appealed by the subscription model, and are entering the market at great speed. [***]

In other words, supply saturation is threatening the sector's incumbents. Consequently, this will put downward pressure on prices as more players compete for market share. 

Entry barriers to the subscription box market in France is low in light of the high levels of competition. [***] 

To be able to differentiatie a brand and its' products, it is crucial for players to position themselves in niche segments in order to target certain consumers in particular. Companies which fail to do so, have had short lifespans in this market. [***] For instance, a start-up labelled Big Moustache experienced financial difficulties in October **** due to an insufficient number of orders per ...

3.2 Production

The production of subsription boxes are subject to ever-increasing consumer requirements on innovation and product differentiation. Due to the relatively short lifespan of a subscription box consumer (***), it is important for firms to ensure that their products ignite an urge for long-term subscriptions amongst consumers. 

Globally and in France, one way to reap market share and increase sales has been to look internationally for inspiration. In particular, many subscription companies offer products which come from abroad. For instace, in the US, the idea of consuming French food is appealing, which is why several subscription boxes have launched to deliver just that. This includes for example OuiPlease.

Moreover, some box brands look to other strategies to ensure growth; co-operation with well-known brands is a hit in France. For instance, Kitchen Trotter gourmet box has made boxes with Cuisine Actuelle, Elle à Table, Madame Figaro, Geo, and Marmiton. The startup up has also worked with Monoprix, La Grande Epicerie, Lafayette Gourmet, and Alice Délice to offer a range of mini-kits sold in the various brands. This co-operation, particularly in the food industry, is crucial as a marketing strategy which enhance growth as consumers look to originality and credibility in products. [***]

Another trend in ...

3.3 Distribution

Today, companies in the subscription box industry have a wide array of customer bases; for instance, these can range between **,*** to ***,***, but also between ** and **. Meanwhile, the majority of producers have a customer base of around **,***. [***]

The intrinsic feature with subscription boxes is that they are delivered to the consumer's home. Consequently, e-commerce is the dominating distribution channel where almost all sales occur. Most companies offer monthly distributions, such as GlossyBox, JolieBox, Mylittlebox, Foodizbox, Le Petit Ballon, La Petite Boîte Française, etc. Other boxes, such as the Dandy Box, are delivered once every two months, and some, such as the Captain's Box, are delivered quarterly.

One parametre which is crucial to take into consideration is shipping costs; these vary with each company and most importantly based on the weight of the package. Generally, shipping prices in France range between €* to €** per delivery. A comprehensive list of prices can be found here.

The market has a strong element of external platforms, such as touteslesbox.fr, shopify, Ziqy, Boxraiser, etc. where consumers get an overview of the entire product offering of the market.

Box companies, and in particular beauty boxes, publish a lot of content on social networks (***), and thus use ...

3.4 Les principales box par catégorie

Une étude réalisée par le site "Toutes les box" en **** nous indique les marques de box ayant généré le plus de trafic sur le site agrégateur d'offres de box. Ces acteurs sont encore en **** des acteurs très présents sur le marché français :  

Source: ****

Plus récemment, les sites Box AZ et Shop Ta Box, deux sites comparateurs de box mensuelles, ont réalisé un Top ** des box les plus populaires en **** :

Blissim : Box beauté de produits internationaux Biotyfull Box : Box beauté ***% bio/naturelle et made in France Gambettes Box : Box de collants éthiques Outfittery : Box de vêtements pour homme  Kube : Box de lecture personnalisée Le Closet : Box de location de vêtements pour femme Woufbox & Miaoubox : Box cadeau pour chien et chat La Box Fromage : Des fromages sélectionnés par un meilleur ouvrier de France Athletes Running Club : Box de course à pied  Emma et Chloé : Box bijoux de créateurs

Nous pouvons remarquer que plusieurs catégories composent ce classement : beauté, mode, culture, animaux, gastronomie, sport, etc.

4.1 Product Analysis

There are around *** boxes available in France today, a number which is rapidly increasing. If we use the classification of the page toutelesboxes.fr, the following product categories can be included in the product offering:

Gastronomy: grocery products, handicrafts, meal kits to be prepared, vegetarian products etc.); Lifestyle: accessories, jewellery, design, etc.; Beauty and cosmetics; Children: children's clothing, games, etc.; Alcohol: wine or beer boxes, etc.; Fashion; Creative leisure activities; Bio: organic products; Books and culture; Computer culture and video games: goodies around different video games, films or series; Love and sexy: sexual games, perfumes, lingerie, candles, etc.; Flowers and gardening; Sports; Animals: hygiene products, sweets and toys adapted to pets; Everyday products; Razors.

According to a study by Louraco in ****, **% of the boxes on the French market were beauty boxes followed by food boxes (***). In other words, French consumers look for beauty products when they look to buy subscription boxes.

Typically, consumers that subscribe to boxes do not know of the contents until the final moment of unboxing. Indeed, this surprise effect and the impatience that reigns a few days before the reception of the box contributes to why consumers increasingly seek to purchase them. Psychologically, it gives the impression ...

4.2 Price Analysis

In ****, the average price per box was €**. The cheapest box today costs around €* and the most expensive can amount to €***. [***]

According to Le Figaro price is an integral aspect when launching a box on the market. The price must be competitive and allow the customer to have access to products at a lower price via the box than via any other distribution channel. 

The same source explains that the monthly subscription rate is generally between €** and €** depending on the type of products in the box. For example, Le Petit Ballon offers a subscription priced at €**.** per month, which includes the monthly delivery of two bottles of wine selected by a renowned sommelier. The Bonne Box, on the other hand, costs €** euros and contains between five and seven high-end delicacy products selected from French and foreign producers.

Moreover, as we stated before, France's most popular boxes are beauty related; for these, the price range falls between between €** and €** on average. For these boxes, Les Echos indicates that prices are below average because they have a dual source of income. Indeed, customers pay per box, and on top of this, various brands offer samples or even pay a certain amount for their products ...

4.3 Supply Trends

Innovative marketing strategies

Michaël Maarek, founder of touteslesbox.fr, states that beauty related subscription boxes distinguish themselves from the rest because these boxes often offer products for free. In this way, companies can engage in aggressive marketing and brand exposure. Moreover, such items often belong to new product lines which, as Maarek states, "… allow brands to directly reach a certain number of customers",

Another vital element in the subscription box industry are margins. David Azoulay, founder of Ziqy which is a technology managing payments and subscriptions, states that "without a minimum **% margin on the box we're going to ship, it's hard to survive." For him, the essential components of a subscription box include "a good purchase price for the product, a good communication strategy, and good customer service. And a cool product, with a good positioning”.

A successful box meets various criteria. "You can't just send a box with products in it. There has to be consistency in the theme, an explanation of the products sent in and the box has to look nice. "Michaël Maarek continues. In any case, the customer must not get bored, otherwise they risk unsubscribing. The selection of products, but also the management of ...

5.1 Regulation

The subscription box industry encompasses a large amount of products, which makes it difficult to boil regulation down to one coherent legislative framework. For instance, literature products are affected by copy right legislation, whilst food products need to adhere to strict rules around food safety and packaging. 

Nevertheless, the size of the expected business that a box will generate dictates the conditions to which one will proceed in a legislative context. For example, when creating a company, this structure will range from a micro-enterprise (***). [***]

Finally, aspects such as terms of condition, responsability, marketing, etc. have to be followed and implemented accordingly. Maillecouture's general conditions serve as a good indicator of which measures that should be respected for any firm operating in the subscription box industry.

6.1 Segmentation

6.2 Etude des sites internet des entreprises

Trafic web des principaux sites de box livrées à domicile en France France, ****-****, en milliers de visites Source: ****

    Trafic web des autres principaux sites de box livrées à domicile en France France, ****-****, en milliers de visites Source: SEMRUSH   

• HelloFresh
• Blissim
• Dollar Shave Club
• Unify Groupe (Au Feminin)
• Le Petit Ballon
• Seazon - FoodChéri
• Glossybox France (The Hut Box)
• My Little Paris (Au Feminin.com)
• Gourmibox
• DandyBox
• My Captain Box
• Made In France Box
• Rutabago
• Trois Fois Vin
• Genadia
• The Magic Box
• La KUBE
• Reworld Media
• Nuoo (Haco)
• Little Cigogne
• QuiToque
• Foodette
• Les Commis
• Cook Angels
• La Boite du Fromager
• La Box Fromage
• Permacool
• My little Box
• Emma et Chloé
• Envouthé
• Touteslesbox.fr
• Beautiful Box by Aufeminin
• La Gourmet box
• La Thé box
• Une Petite Mousse
• La Boit'Apéro
• Pandacraft
• Designer Box
• Gambettes box (Au féminin)
• Gretel (Au féminin)
• Holidog Happybox
• Happy Baby Box
• Biotyfull Box
• Woufbox
• Box Healthy
• Masterbox
• Tick & Box
• Naturabox
• Wonderbox
• Smartbox Group