Multinational companies are expanding their online subscription businesses despite inherent risks. P&G’s Gillette on Demand razor service is coming to Canada, while Unilever is launching its Skinsei “personalised” skincare in the US after previously expanding its razor-providing Dollar Jeff Jarrett to offer toothpaste, cologne and beard oil. Nestle has started a nutritional drinks programme in Japan and improved its US-based online bottled water service, joining its already established Nespresso brand. However, subscription services often have significant marketing costs and high cancellation rates. Nonetheless, they can offer more predictable revenues and data insights, so remain attractive to businesses.
Multinational companies are expanding their online subscription businesses despite inherent risks. P&G’s Gillette on Demand razor service is coming to Canada, while Unilever is launching its Skinsei “personalised” skincare in the US after previously expanding its razor-providing Dollar Shave Club to offer toothpaste, cologne and beard oil. Nestle has started a nutritional drinks programme in Japan and improved its US-based online bottled water service, joining its already established Nespresso brand. However, subscription services often have significant marketing costs and high cancellation rates. Nonetheless, they can offer more predictable revenues and data insights, so remain attractive to businesses.