Subscribe And Clash

Alan McGrath
National Organiser, Health Stores Ireland

When we see brands move from glass to plastic, pack to pouch and personality to easy-packable, retailers need to take notice.

As once-trusted speciality ranges increasingly pivot towards online subscription models, marketing veteran Rory Sutherland warns that this strategy could lead to long-term brand damage and a potential death knell for retailers.

“The illusion of direct customer relationships often masks the true value of traditional retail partnerships,” Sutherland notes.

The rush to embrace subscription-based services might seem attractive, offering immediate and forced revenue streams and perceived direct customer relationships. This approach overlooks the critical role that product-focused retailers play in brand building and customer trust, particularly in sectors like health and wellness.

Independent retailers, especially health stores, have historically served as more than just sales points. They provide invaluable product education, personalised recommendations and brand advocacy that no algorithm can match.

In Ireland, a robust network of independent health stores reaches every county, offering unparalleled market penetration and customer trust. While social media campaigns and direct-to-consumer strategies might drive short-term sales, they often undermine the very partnerships that built brand credibility in the first place.

Retailers, already struggling with global online competition and large chain stores, view brand-direct subscription models as another threat to their sustainability.

Alarm bells should be sounding for brand-holders as we witness growing evidence of subscription fatigue among consumers. Services like Truebill, Rocket Money, and many other subscription tracking apps are gaining popularity, helping users identify and cancel unnecessary subscriptions. This trend suggests a broader consumer pushback against the subscription economy.

Brands that abandon traditional retail channels for subscription models may find themselves in a precarious position. When the subscription bubble inevitably bursts, rebuilding relationships with alienated retailers could prove impossible. The damage to brand reputation and distribution networks might be irreversible.

Independent health stores have demonstrated their value as sustainable, ethical partners for both emerging and established brands. Their knowledge, customer relationships and community presence offer something that no subscription model can replicate.

Instead of viewing subscriptions as a silver bullet, brands should consider strengthening relationships with independent retailers, leveraging local market knowledge and expertise and building sustainable, trust-based distribution networks. The subscription model, while tempting, represents what Sutherland describes as “short-term thinking with long-term consequences”.

Retailers increasingly view brands that pursue aggressive subscription strategies as potential threats, leading to reduced support or even outright rejection. For sustainable growth, suppliers should focus on building strong partnerships with retailers who have proven their value over time.

The immediate gains of subscription models might look attractive, but the long-term costs to brand equity and market presence could be fatal.

The path to long-term success lies in nurturing relationships with retailers who in turn foster long-term relationships with your customers and who have consistently demonstrated their commitment to brand building and customer service, rather than chasing the temporary allure of direct-to-consumer and/or subscription models.

Customers get lost in unrelenting, faceless, blinkered, one-dimensional online shopping supermarkets. Retailers offer personality – guaranteed.

Health Stores Ireland is the professional trade association representing more than 110 independent health stores in Ireland. Visit irishhealthstores.com, Facebook @HealthStoresIreland