What: Subscription-based businesses face challenges as consumer fatigue grows and market competition intensifies.

Why it is important: It highlights the need for businesses to adapt their subscription models to changing consumer expectations and market conditions.

Recent closures of subscription services like Bellabox and Rocksbox highlight challenges facing the subscription economy. Factors include increasing competition, operational costs, and consumer fatigue. A survey found that 81% of subscribers in India and Southeast Asia believe there are "too many" subscription services available.

Despite these challenges, the subscription model shows potential for growth. The Subscription Economy Index (SEI) reports that subscription-based companies have outpaced traditional businesses, with revenue growth 3.4 times faster than S&P companies since 2012. In Asia Pacific, SEI businesses reported 14.6% revenue growth last year.

To succeed, businesses must focus on delivering clear value, enhancing customer experience, and offering flexible options. Strategies include customizable plans, bundling complementary services, and integrating advanced technologies like AI for personalization. Payment flexibility, including rent-to-own models and Buy Now Pay Later options, is increasingly important.

The subscription model remains attractive in Asia Pacific for its agility, affordability, and convenience, particularly in making high-end products more accessible to a broader audience.

Is the subscription economy still relevant?