Luxury Subscription Boxes in India: Price + Value = Commitment?Andi DeFonce |
“Channels aren’t buying anything; the consumer is,” Raja Rajamannar, MasterCard Worldwide CMO told Marketing Magazine UK. “And they’re not buying from just anywhere, they’re buying from retailers who show they’re committed to them. This new strategy of commitment marketing is meant to increase the intensity of relationships and revenue.”
Among the industries understanding these demands and providing solutions for them, subscription box services come to the forefront.
Forbes showcases Delhi-based My Envy Box, a jewelry subscription founded by Rishi Seth and Julie Rousselet. This duo is on path to reaching a milestone: From raising $100,000 in mid-2014 raising $1 million to $2 million in funding.
Seth and Rousselet first entered the “subscription box” market in August 2013 when they launched a luxury beauty subscription box service. This beauty subscription box service, modeled after Birchbox, offers sample-sized international products to Indian women, a market of 400 million aged 15 to 59. Each box costs $12 per month and contains four international brand sample products that due to customs and duties structures would be costly for the consumer to purchase in the full size. The beauty box is seasonally curated.
What jolted the jewelry box subscription into being? In India, the jewelry market was valued in 2013 at approximately $40.4 billion and is predicted to be worth $85 billion by 2018. There is a growing demand in India for semi-precious and fashion jewelry made by local merchants.
The My Envy Box will be priced between $30 and $35, giving consumers’ options to subscribe for one month, three months, six months or one year. The box is unique in the sense that it capitalizes on the “Made in India” concept that has gained acceptance amongst consumers there as long as the price is right and the quality is there. Local sourcing keeps the price down.
My Envy Box has plans to introduce special edition boxes that will cater to special demands such as a wedding, travel or corporate events. Advanced algorithms will be used to enable optimized curation of jewelry in the future. The founders also plan to donate one percent of revenues from the jewelry box to non-governmental organizations (NGOs) working with local artisans.