Subscription usage in Japan - statistics & facts
Subscriptions as a business model are not new to Japanese consumers, since the idea of paying a recurring fee for access is the basis of established services like telecommunication contracts and newspaper deliveries. However, the widespread adoption in other sectors is a comparatively young development, which was further accelerated by the coronavirus pandemic. Subscription services represent the most distinguished segment, owing to the prominence of video and music streaming services like Netflix and Apple Music. Within the consumer goods sector, regular deliveries of non-durables with a predictable usage period have been established in segments like health and functional foods. Over the last decade, the subscription sales model has gradually diversified due to the varied nature of how different products are consumed.
In contrast, rental-type subscriptions have been established as a compromise for semi-durable and durable consumer goods requiring either high investments for purchase or high fees for short-term renting. In this model, subscribers can rent out a specified number of items according to their monthly plans for a recurring fee, with a buyout option to own a product at a reduced price. This model focuses on the experience and caters to the increasing preference for renting over buying among young consumer groups.
Subscription models: from flat-rate to rental
The flat-rate model is the most common and popular subscription model in Japan. This subscription type allows unlimited use of a service for a recurring fee and is the standard for digital services as well as subscriptions tied to facilities like beauty services. A common model for non-durables is subscription boxes that allow customers to discover new products while also receiving scheduled deliveries of items matching their preferences. Although still low in adoption, meal kits, snack boxes, and experts-curated cosmetics are just a few examples of the subscription box model.In contrast, rental-type subscriptions have been established as a compromise for semi-durable and durable consumer goods requiring either high investments for purchase or high fees for short-term renting. In this model, subscribers can rent out a specified number of items according to their monthly plans for a recurring fee, with a buyout option to own a product at a reduced price. This model focuses on the experience and caters to the increasing preference for renting over buying among young consumer groups.
