Baby And Children's Goods Industry

Illustration of launching a rental business as a pilot

Pilot Project.

Launch your subscription model detached from your everyday business and learn about the demand, product quality and user behaviour with your products. Ready to go live in 3-5 months.

Illustration of launching a subscription business with existing tools

Fully Intergrated Rollout.

Integrate the subscription model directly into your existing commerce world (online shop, ERP, Logistics, accounting, etc.). circuly helps you scale your product subscription model.

Success Stories That Inspire.

Learn how companies are innovating their business models to become more circular while participating in the concept of access over ownership.

Short Answer.

Many companies have been offering alternative solutions to traditional ownership or purchasing models. While this trend has primarily existed in the industrial sector in the past, it is now becoming increasingly popular in the consumer sector as well.

Examples such as car subscriptions, solar panel subscriptions, heat pump subscriptions, and consumer electronics subscriptions highlight this shift.

If you see your competitors already providing flexible alternatives to ownership or purchase, it indicates a growing demand for such solutions. It is in your best interest to offer a similar solution to stay in line with industry and consumer trends. Failing to do so could mean falling out of sync with the evolving market landscape and risking the longevity of the business.

Detailed Answer.

The Situation:

‍Consumers today are increasingly seeking flexible solutions, driven by economic uncertainties that make them cautious about purchasing expensive products outright. Many companies have responded to this demand by offering alternatives to traditional ownership models, often aiming to create more attractive offers for customers.

Examples such as car subscriptions, solar panel subscriptions, heat pump subscriptions, and consumer electronics subscriptions highlight this shift. The market is evolving towards more flexible and sustainable ways of accessing products, driven by consumer demand for convenience and environmental consciousness.

The Problem

For companies not adapting to this trend, there lies a risk of falling behind in an ever-changing market landscape. If you see your competitors already providing flexible alternatives to ownership or purchase, it indicates a growing demand for such solutions. This presents a challenge for businesses that continue to rely solely on traditional sales models. Failing to offer subscription-based options may result in losing market share, customer loyalty, and revenue opportunities. This lack of adaptability to changing consumer preferences could jeopardise the longevity and competitiveness of the business.

The Solution

Rethinking the business model is no longer just an option but a necessity to remain relevant in the competitive landscape. Offering alternatives to purchasing, such as subscription models or rent-to-own options, has emerged as an attractive strategy. These models not only cater to consumer preferences for flexibility but also come with added advantages and benefits, making them a win-win for both businesses and consumers. This shift towards innovative business models is essential for companies aiming to stay ahead of the curve and maintain a strong foothold in the market.

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Short Answer.

Manufacturers and retailers often find their products being sold on second-hand marketplaces without gaining any benefit from these sales. This means they miss out on potential revenue from subsequent sales and additionally loose control over their brand image and product quality.

What's interesting is that manufacturers such as Dyson are now actively selling refurbished products on platforms like eBay. This strategic move indicates their awareness of the significant market for second-hand purchases of their products.

By establishing themselves as the primary providers of second-hand and refurbished goods, they solidify their position in the market and maintain control over their brand image and product quality.

Detailed Answer.

Presence on second-hand marketplaces indicates potential demand for pre-owned goods, suggesting opportunities for extending product lifecycles through resale or rental services. For example, if your business deals with baby goods, furniture, home appliances, or consumer electronics, seeing your products on second-hand marketplaces can signify a thriving market for gently used items. This presence on recommence platforms not only suggests sustainability by reducing waste but also presents opportunities for additional revenue streams through resale or rental services.

The Situation

Many manufacturers and retailers have noticed their products appearing on second-hand marketplaces, yet they often do not benefit from these sales. This means they miss out on potential revenue from the second or third sales of their products.

The Problem

This situation not only represents a loss of revenue but also raises concerns about brand control and product quality. Not only are businesses unable to capitalise on the market for their used products, resulting in missed revenue opportunities, this situation also leads to uncertainties about the control of their brand image and the quality of their products in the secondary market.

The solution

Launching a subscription-based business model presents a viable solution to the challenges posed by second-hand sales. By offering products through a subscription service, manufacturers and retailers can regain control over the lifecycle of their products. This enables them to capture revenue from each use of the product, whether it is the first, second, or third time it is sold. Moreover, subscription models allow companies to maintain a direct relationship with customers, ensuring consistent brand representation and product quality.
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Many circuly customers have pointed to this as a key reason for choosing a subscription-based business model, as it offers a solution to this challenge.

‍Example: Dyson now sell refurbished items on platforms such as eBay. This strategic move recognises the demand for second-hand purchases and establishes a strong market presence.

Short Answer.

Tech products which can quickly become outdated or products that quickly evolve due to technological advancements are perfect for subscription models. Not only do tech enthusiasts get access to the latest technology without the burden for frequent purchases, businesses providing such a service benefit from steady flow of revenue and a loyal customer base.

Detailed Answer.

The Situation

Many products, such as consumer electronics, bikes, and hobby items, quickly become outdated due to the rapid changes driven by evolving technologies and shifting consumer preferences. This constant evolution often leaves individuals feeling overwhelmed as they struggle to keep up with the latest trends. Additionally, companies invest heavily in research and development, contributing to the continuous cycle of product obsolescence.

The Problem

The fast pace of technological advancement poses a challenge for both consumers and businesses. Consumers find it difficult to keep up with the latest innovations, leading to frustration and the burden of frequently updating their products. Meanwhile, businesses face the risk of losing customers who are hesitant to invest in products that might become outdated quickly. This cycle not only impacts customer satisfaction but also hinders revenue growth for businesses.

The solution

Subscription models emerge as a practical solution to this challenge. By offering updated products or services through subscriptions, businesses enable customers to access the latest innovations without the need for constant purchases. For instance, a smartphone subscription service could provide regular upgrades to the latest models, ensuring customers always have cutting-edge technology at their fingertips. This approach not only relieves consumers of the pressure to keep up with the latest trends but also provides them with a more affordable and convenient way to enjoy new technologies.

The Benefit

The benefits of subscription models extend to both customers and businesses. Customers enjoy the convenience of receiving updated products regularly, eliminating the hassle of constantly purchasing new items. This leads to increased customer satisfaction, loyalty, and overall value. For businesses, subscription models create a steady stream of revenue and help establish a loyal customer base. Additionally, the circular nature of subscription services allows businesses to retrieve products at the end of their lifecycle. These products can then be repaired, rented to other users, or sold on second-hand marketplaces, reducing waste and environmental impact while extracting value from used items. This sustainable approach not only benefits the environment but also enhances the overall value proposition for customers.

Short Answer.

Products that require setup assistance, ongoing maintenance and frequent repairs are particularly well-suited for subscription offerings specially now because more and more consumers are prioritising hassle-free consumption where they don't have to worry about things like repairs and maintenance. Companies that recognize this and implement solutions will be rewarded with a loyal customer base, increased customer satisfaction, and long-term revenue stability.

Detailed Answer.

Post-sale support and maintenance play a crucial role in ensuring product longevity and customer satisfaction. Products that require setup assistance and ongoing maintenance are particularly well-suited for subscription offerings.

In an era where consumers increasingly prioritise hassle-free consumption, subscription models provide an attractive solution. Take Swapfiets, for example, a bike subscription company based in the Netherlands. Their success stems from offering hassle-free bike ownership—customers never have to worry about bike repairs, making it a popular choice across various customer segments.This trend extends beyond bikes; consumers often prefer the convenience of having the company that manufactured the product, handle repairs and maintenance. Many people find dealing with repairs cumbersome and struggle to find reliable local solutions. In industries where post-sales support and maintenance are essential, a subscription model offers an all-inclusive service, enhancing customer satisfaction and loyalty.

As a result, many companies are integrating a servitisation aspect into their business models to have additional touchpoints with their target customers. By offering post-sale support and maintenance as part of a subscription package, businesses not only ensure product longevity but also foster circularity by extending product lifecycles through repair and maintenance services. This approach not only enhances customer satisfaction but also contributes to a more sustainable consumption model.

Examples
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Swapfiets - The bike subscription company based in the Netherlands has gained significant popularity, particularly among university students, thanks to its compelling value proposition: "An always reliable bike." Subscribers emphasise the convenience of accessing a bike for their daily commute without the hassle of repairs, knowing that expert assistance is readily available when needed.
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Bundles by Miele - Miele offers its washing machine in a leasing model for a very attractive price of €13 to €15 a month. To make the offer attractive and unique they offer post-sales support and take care of maintenance, repair and even pickup of the washing machine.

www.tier.app/en/long-term-rental-2

Launch of long-term e-scooter rental by TIER Mobility.

Micro-mobility company TIER shifted from selling their refurbished e-scooter to a rent-to-own model. circuly helped them launch in Europe.

Sweet! Enjoy reading the TIER Success Story.

Oops! Something went wrong. Never mind, here's the TIER Success Story. Enjoy reading.

www.tier.app/en/long-term-rental-2

Launch of long-term e-scooter rental by TIER Mobility.

Micro-mobility company TIER shifted from selling their refurbished e-scooter to a rent-to-own model. circuly helped them launch in Europe.

Sweet! Enjoy reading the TIER Success Story.

Oops! Something went wrong. Never mind, here's the TIER Success Story. Enjoy reading.

www.lease.bugaboo.com

Bugaboo's subscription pilot enables them to advance their growth goals.

Micro-mobility company TIER shifted from selling their refurbished e-scooter to a rent-to-own model. circuly helped them launch in Europe.

Sweet! Enjoy reading the Bugaboo Success Story.

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www.strollme.de

StrollMe is creating a new way for parents to access kids products.

Micro-mobility company TIER shifted from selling their refurbished e-scooter to a rent-to-own model. circuly helped them launch in Europe.

Read the success story

The Rise of Subscriptions In The Baby Goods & Parenting Industry.

Subscription Models are Transforming the Industry.

Kids frequently need new things....

But new products are expensive €€€..

Parents want quality...

And are tired of storing unused baby gear...

They are unsure about needs & functionality...

But want to be responsible parents...

That’s Why “As-A-Service Models” Have Become a Popular Choice.

Flexibility to adapt to growing & changing needs.

Try-before-buy to facilitate decision making.

Reduced financial burden.

Reduced clutter and unnecessary storing of goods.

Access to high-quality products.

Sustainability & waste reduction.

Already Operating A Subscription Model?

Experience Subscription Management with circuly.

Nearly All Categories of Kids' Products Are Available as Subscriptions.

Are You Leading the Way or Watching From the Sidelines?

50K subscribers & 5.8 million pounds in revenue - BikeClub shows that profitability & circularity can go hand in hand.

Sector.

Location.

Product.

Subscribers.

StrollMe - Pioneered a baby goods subscription service in Germany and has become industry inspiration.

Sector.

Location.

Product.

Subscribers.

Swing2Sleep's subscription service reduces parent hesitation and increases retention by enabling parents to "try-before-buy".

Sector.

Location.

Product.

Known for.

Tribu - A subscription box for kids toys.

Sector.

Location.

Product.

Subscribers.

What Is The Subscription Model?

Common Business Models.

Product-as-a-service.

Subscription Box.

Consumable Subscription.

Try Before Buy.

Rent & Sell Combo.

Exponential Growth Of Existing Players Showcases The Potential of The Baby Goods Subscription Industry.

+426%

+301%

+327%

$4.5 trillion

$1.5 trillion

$71 billion

How To Get Started?

Pilot Project.

Fully Intergrated Rollout.

Success Stories That Inspire.

Launch of long-term e-scooter rental by TIER Mobility.

Launch of long-term e-scooter rental by TIER Mobility.

Bugaboo's subscription pilot enables them to advance their growth goals.

StrollMe is creating a new way for parents to access kids products.

Future-Proof Your Business by Adding Subscriptions It.

Earn Recurring Revenue.

Make Your Company Sustainable & Circular.

Multiply Product Profitability.

Discover Recommerce Opportunities.

Get Ahead of Resource Scarcity.

Enhance Customer Relarionship.

Reach New Customer Segments.

Enable “end-of-life” Product Use.

The Rise of Subscriptions
In The Baby Goods & Parenting Industry.