From Amazon to MakeMyTrip, Indians are finally signing up for paid subscriptions

Fancy a daily peg? There’s a startup in Bengaluru that offers a free drink every day for an entire month. Or if you prefer, you can opt for unlimited drinks four times a month. All you need to do is subscribe and visit Foom’s partner pubs.

Sanchit Vir Gogia, founder and CEO of Greyhound Research, a technology, innovation research and consulting firm, feels the subscription model may be more suited for business-to-business (B2B) and corporate clients.

“For instance, an Amazon or MMT account operated by corporate clients, where predictability of ordering is more and usually regular as well,” he says.

Gogia reckons these subscription services will only have limited appeal and has doubts about scalability.

“Only 1% of your customer base will opt for it. It is not a strategy for new high-spending customer acquisition,” he says, “They have to be a loyalist already. It is unlikely that these loyalists will be visiting other competing platforms to compare prices. It does make a lot of sense to increase the wallet share of customers, but I’m not sure whether this will scale in India.”

[Source]

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.


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