App subscriptions are all the rage these days. Try an app and if you like it then you pay for it by the month, or, in many cases with an annual payment. App subscriptions are purely a rental situation, but the subscription model just jumped to a new species.
Subscriptions have jumped from applications to wearables and other products. How so? Eric Abent explains:
A huge number of companies out there are now offering monthly subscriptions, covering everything from streaming to food and even dog toys.
Food I can understand. Dog toys?
My iPhone XS Max is on the iPhone Upgrade Program and it’s likely I’ll bite the monthly bullet and get the new iPhone X Pro when it launches in a month or two. That means even iPhone is a rental, or, put another way, an iPhone subscription.
Pay to use.
Nike has announced it’s getting in on the subscription frenzy, but what it’s offering isn’t as crazy as it sounds at first blush.
Uh oh. Shoes?
Nike is positioning its new subscription service as the perfect solution for parents with growing children. Officially called the Nike Adventure Club, the service allows parents to swap out shoes on a regular basis to keep up with their child’s growing feet (and, presumably, changing tastes).
Good God. A subscription service for shoes and it actually makes sense.
An app subscription is a monthly payment to use an app. Rent is a monthly payment to live in a house or apartment. A car lease is a monthly payment to use a car for a few years.
There are more than 100 different shoe styles and designs to pick from as well. When you’re sent a pair that you like, you can keep it, but when your kid outgrows it or decides they don’t like it, you can send it back to be recycled or donated and receive a new pair.
Now, on the surface this makes absolute sense. I have nieces and nephews and I know they go through shoes like scrolling through warm butter.
Nike seems to think that kids can go through shoes in months and priced the shoe subscription accordingly. Think shoe subscription tiers.
The first tier gets you a new pair of shoes every 90 days – so four pairs a year – for $20 a month. The second tier tuns $30 per month and grants six pairs per year. The final tier is a not-inexpensive $50 per month, but it nets you a new pair of shoes every month. Nike says that you’ll save $10 per pair on that highest tier, but any way you want to frame it, that’s a lot of shoes.
Shoe subscriptions. Good grief. What’s next? A monthly subscription for Starbucks?