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Subscription Box Retailing: Expansion Path or Bound for Bust?

A look at this emerging industry reveals rising popularity, new player launches, established retailer buy-in, and keen investor interest. Signs, however, point both to growth and consolidation ahead.

Source: Bigstock

The "subscription box" retail model, in which customers commit to a regular delivery of product, is nothing new. Pre-Internet examples include magazine and newspaper subscriptions, book and record clubs, and a range of food subscriptions services, including Harry and David's 1937 "Box of the Month" service. (source: Wikipedia) However, interest has boomed since 2013, with over 2,000 subscription box start-ups launching with more than $1 billion in venture capital funding. (sou...

 

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