If you’re thinking about your next business idea, a subscription business model may be the way to go.
Business startups are booming in Vietnam, and in the past decade, one of the most popular business models has been the subscription business model.
Since Vietnam’s first subscription box launch in 2016, the market has exploded with both local businesses adopting this approach and more international subscription companies like Netflix expanding their service to Vietnam. Yet the concept remains a novelty in places like Vietnam, which presents budding entrepreneurs with an opportunity to fulfill a growing need in the market and create a thriving business from doing so.
Include Product Pricing Variations In Your Market Research
A great subscription box offers variety, exclusivity and great quality products. The variation of your monthly boxes also comes with varying prices, which can easily erode profitability if not managed correctly. To combat this, establishing a strong supply chain and doing adequate research on your product pricing can help. While you still want toprice your product competitively, you may want to start with a range of pricing tiers for your launch.
After some time and data collection/analysis, you can then amend your pricing to a more appropriate amount. Remember that the market for each product you choose to include in your subscription box monthly can easily change and influence the overall cost of production for your business. Lastly, remember the golden rule: quality over quantity. Bumping up your box content with low priced and low-quality products to simply include the subscription box product quantity can easily backfire and damage your brand.
Get The Individuality Aspect Of Your Subscription Box Right
The individuality, uniqueness and variety that subscription boxes offer are some of the key attraction factors that draw customers to them. Whether it is a meal kit service offering a glimpse of global cuisine or a monthly beauty box filled with the latest skincare launches, customers love the convenience and increased access to the variety subscription boxes offer, all from the comfort of their homes. For this reason alone, it is important that you get your subscription box business to get this quality right, particularly since the Vietnamese market is now filled with subscription box alternatives.
The best way to address this is to build on your market research. Once you have identified the gap in the market your product is meant to fill, it is time to go a step further and think customization options. One option is tapping into the sustainability or organic market trend. For instance, offering an organic coffee taster subscription box or vegan global meal kit box. Another option for individuality is offering customers tester options or options for personalized recurring packages at different price options, allowing them to take personalization to another level. The key here is to stay abreast of thecurrent trends in the consumer market and incorporate them into the results of your market research.
Keep Things Simple From Your Initial Brand Launch, Including Your Customer Service And Feedback
Whether you opt to do a soft product launch or tease customers with brand adverts, the way you launch your subscription box should be completely aligned with the tone your product aims to portray. However, it is essential that you keep the signup, information and order process simple from the very first customer. Customers hate having to go through multiple and potentially confusing websites and signup pages before they are even aware of what your subscription box is offering. This is particularly pertinent when it comes to signing up as a subscriber, payment plans or withdrawal FAQs.
Keep your business website simple with clear headers and directions on common customer queries. Extend this to your social media (which plays a vital role in promoting and marketing new subscription boxes) and any company features you may secure on third party websites. Adding a short About Us description or video on social media platforms can also help. When it comes to customer service and queries, be sure to have a readily available list of FAQs on your website and dedicated customer service employees ready to answer questions.
There are also country-specific issues you will need to tackle before you launch your subscription box business, such as shipping logistics for irregularly numbered addresses in Vietnam or 4.1 percent credit card ownership rate. Because it’s a largely cash-based society, launching a subscription-based business in Vietnam will call for some innovation on the payment platform front. However, with the country’s startup scene booming, there has never been a better time to try.