Are Australian Brands Missing A Subscription Opportunity?

Are Australian Brands Missing A Subscription Opportunity?

US retailer Walmart surprised many when it launched Walmart Plus last month, a premium subscription service that gives members access to unlimited delivery and special deals.

The move puts Walmart directly against Amazon, which has enjoyed enormous success through its Amazon Prime initiative in recent years.

And while the US retail subscription market might be starting to look a little overcrowded, in Australia, it is anything but.

Amazon, eBay and Catch all currently offer subscription services in Austalia, however, these marketplaces are yet to enjoy the same uptake as they have had in the US.

According to Criteo’s commercial director Colin Barnard, it is some of Australia’s more established brands that are best placed to embrace this opportunity.

“In theory, a retailer who has a large range of products that are bought reasonably frequently and cater to mainstream Aussies could have a subscription model at scale and this may reduce or eliminate the largest barrier to online purchases: delivery costs,” he told B&T.

“This applies to marketplaces who already offer these services such as Amazon, eBay and as well as multi-brand retailers like Woolworths, Big W, Target, Kmart and Bunnings.

“The genius of Amazon Prime is that as a consumer, each time you have the choice of Amazon or another retailer you will want to extract as much value as possible out of the subscription to justify the cost, therefore most of the time you will opt to purchase via Amazon.”

While discounts are a major selling point for these services, it is the perceived ‘perks’ that are most inviting to customers.

Barnard pointed to recent Criteo data, which shows 57 per cent of Australians would sign up to a loyalty program and subscription-based pricing model because of the free perks, such as free shipping.

And while a like-for-like service to Walmart Plus might not be feasible in the Australian market, Barnard still urged local brands to be brave when it comes to engaging with customers across multiple touchpoints.

“Aussie brands must be bold and strive to offer the most valuable customer experience possible, even when they think the competition may be insurmountable,” he said.

“A full-funnel marketing solution that supports every stage of the customer journey is a crucial piece of ensuring they understand their consumer and can cater to their needs.”

He highlighted the work of and the collaboration between and Target as great examples of Australian brands engaging with customers in new ways.


Please login with linkedin to comment

Amazon Criteo

Latest News

QUT Business School Launches “Make it Real” Via BCM Group
  • Campaigns

QUT Business School Launches “Make it Real” Via BCM Group

Queensland University of Technology (QUT) Business School has launched a new brand platform, developed by BCM Group, built to encourage prospective students to upskill, invest in themselves, and nurture their inner entrepreneur.

Making A Name For Your Brand In A New Market: Tips For Launching A Campaign Globally
  • Opinion

Making A Name For Your Brand In A New Market: Tips For Launching A Campaign Globally

Jacqueline Gonzales [featured image] is the Head of Global Marketing at Squarespace. In this piece, she shares her best pieces of advice for launching a campaign globally. It’s estimated that we see between 6,000 to 10,000 ads every single day. In today’s digital landscape we’re constantly bombarded by so many different brand messages from every […]


by B&T Magazine

B&T Magazine
Acast Announces New Podcast ‘The Elements’
  • Media

Acast Announces New Podcast ‘The Elements’

From the audio producer of The Teacher’s Pet comes The Elements, a new Acast Creator Network podcast hosted by Thredbo survivor Stuart Diver. The Elements is a  podcast that journeys into the heart of surviving a natural disaster and will be hosted and distributed by the creator-first podcast company Acast as part of the Acast Creator […]