Subscription models in Belgium with focus on retail: Consumer Survey
Unlocking subscription growth with more offer, value and flexibility
Physical shopping is historically embedded in Belgian consumer culture. Yet a majority of Belgian shoppers sometimes avoid physical stores. It can be for a variety of reasons, including price, crowds, and inconvenience. This leaves space for new retail models, such as the subscription model.
To explore this space, in June 2024, Deloitte Belgium and Comeos (Belgium’s federation for commerce and services) collaborated on a consumer survey around this topic. Subscription models are where you pay a recurring fee for regular deliveries, such as meal boxes with a recipe and ingredients. Next to this are memberships, where a recurring fee gets you better shopping terms and conditions, such as free products, improved delivery options, or discounts.
Current situation and challenges
In 2023, the box subscription model market represented $31 billion revenue globally, and forecasts expect it to exceed $145 billion by 2032. This shows the high potential for subscription models in the coming years, an industry shift Belgian retailers need to understand.
Although these models have been gaining traction, in-store shopping is part of Belgian consumer culture. A previous Comeos study, “Convenience Survey 2023 – The Belgian consumer/shopper in search of affordable convenience”, revealed that 96% of respondents had shopped at traditional brick-and-mortar stores at least once in the previous six months. That said, 65% said they occasionally avoided physical shops. Why? Online products could be cheaper, shopping in crowded stores is unpleasant and takes too long, and opening hours are inconvenient.
Around the world retail subscription models are taking hold: more than 35% of global consumers have at least one active retail subscription. Yet compared to America, Europe lags behind, with different adoption rates among countries depending on retail category.
In Belgium, just 15% of the population subscribe to box services. However, memberships are more popular, with 46% having at least one. It’s highest among the younger generation in Brussels (with no significant differences across household income levels).
What do Belgians prefer?
Belgium differs from the rest of Europe in this regard. Food and clothing/personal care rank as the top categories, with preferences varying by household income. Lower-income households tend to subscribe to replenishment boxes for essential goods like food and beverages, while higher-income households are more likely to spend on discretionary items, such as pet care and leisure activities. Price, flexibility, and dietary considerations key factors across all ages, regions, and income levels.
Two big questions remain: What motivates Belgian consumers to subscribe? And what deters them from doing so? There are three main factors at play: convenience and sustainability considerations; hurdles like lack of transparency, limited flexibility, high prices, and no trial period; and good reasons to unsubscribe, such as opaque pricing, mismatch between expectations and service, and infrequent use of the products.
Act now and adapt
To succeed in the subscription and membership market and avoid losing out on this opportunity, retailers need a strategic approach.
- Start Small: with a limited product range or offer, to manage resources effectively and minimise risks.
- Start Learning: Continuously gather and analyse customer feedback and market data.
- Start Strategic: Focus on understanding and meeting customer needs.
- Start Now: The market is rapidly evolving, and early entry can provide a competitive edge.
A previous survey performed by Deloitte and Zuora in 2022 - Retail Report: Subscription business, present and future of subscription in the Retail sector also shows that subscribers would be willing to spend more on subscriptions overall if an all-in-one platform were available. Known as Super Bundling, this would be simpler and give subscribers more control over their spending. With such a platform, 46% of subscribers would spend more time engaging with their subscriptions and 40% would also sign up for more services.
In line with the US and Australia, European subscribers want telcos to offer these all-in-one content hubs: 38% would pay a higher mobile or internet bill for a package of popular subscriptions, with 35% willing to pay an extra 25% or more. This is where Super Bundling offers a clear path forward. It’s a win for all players, with nearly limitless possibilities
By following these steps, retailers can position themselves for long-term success in this rapidly growing market.
