Earlier this year, Australian skincare and beauty product subscription service Bellabox shut down after more than 10 years of operation. Bellabox cited the increasingly competitive retail environment and escalating operational costs as primary factors contributing to its inability to sustain the business. In a similar vein, US-based jewellery company Rocksbox discontinued its subscription rental service last month, rebranding it as an e-commerce site. The cases of Bellabox and Rocksbox are not isolated incidents but rather part of a broader trend. These companies exemplify a growing number of businesses reevaluating and ultimately moving away from the conventional subscription model.As consumers sought convenience and at-home solutions during the pandemic, subscription services across various sectors saw unprecedented growth. However, the post-pandemic retail climate has introduced new challenges and uncertainties. Potential decline in interest“During the rise of the subscription economy in Asia, some customers may feel subscription fatigue,” Erik Almadrones, EY Asia Pacific consulting customer and growth leader, told Inside Retail. He explained that the lack of perceived value, inflexible terms, and overwhelming choices contributed to this reaction. A survey from Bango found that 81 per cent of subscribers in India and Southeast Asia believe there are now “too many” subscription services available. However, the same percentage from this group responded that they would sign up for more subscriptions if consolidated through a centralised content hub.  “Consumers in the subscription economy are increasingly discerning, prioritising value in their purchasing decisions as costs of living remain a top concern,” Almadrones said. “Amid these challenges, they are increasingly expecting shopping experiences to be centred around flexibility and value – especially as AI-powered personalisation becomes available.”According to him, subscription models that deliver little to no value tend to fail, especially when they lack differentiation, offer poor customer experience, and have inflexible pricing structures.Rethink the model“Without a unique value proposition, it is challenging to stand out in a crowded market. The key to success is to design the right subscription offer,” Almadrones said. “Businesses must focus on delivering clear, differentiated value and enhancing the customer experience. This includes offering more flexible subscription options, ensuring transparency in pricing, and continually innovating to meet changing customer needs.”Subscription-based companies are looking into changing their models beyond traditional offerings to attract new customers while strengthening relationships with existing ones.According to Almadrones, offering customisable plans allows customers to adjust their subscriptions as their needs evolve while bundling complementary services adds value and encourages long-term commitment. Legal vigilance ensures compliance with changing regulations, and transparent disclosures build trust by clearly communicating billing cycles, cancellation policies, and data privacy practices. “Businesses should also consider offering incentives like guaranteed locked-in prices for long-term commitments and exclusive content, which enhances customer experience and retention,” she added. Meanwhile, advanced tech integration, such as AI and machine learning, can help personalise the subscription experience by analysing customer behaviour and preferences to offer tailored recommendations.Payment options and financial flexibility are crucial factors influencing consumer decisions regarding subscriptions.“These are critical factors that influence customer decisions, especially for high-ticket household durables. The recurring rent-to-own model, for example, is particularly attractive to lower-income consumers with inconsistent and limited incomes, as they can get access to products that they want to buy with gradual recurring payments,” Almadrones added. He said the latest trend in this model is the integration of Buy Now Pay Later as a financing option, further reducing the barrier to entry into ownership.Room for growth Despite economic uncertainty, the subscription model still has significant potential for growth and evolution in various industries.The Subscription Economy Index (SEI) demonstrates that subscription-based companies have outpaced traditional product-based businesses, achieving revenue growth 3.4 times faster than companies in the S&P since 2012.In Asia Pacific, SEI businesses reported revenue growth of 14.6 per cent last year, with a four-year compound annual growth rate (CAGR) of 22.3 per cent, surpassing the sales growth of major regional exchanges.“Asia Pacific consumers are gravitating towards subscriptions for their agility, affordability, and convenience. The subscription model offers significant advantages, such as minimising ownership risks and eliminating hefty upfront costs, making high-end products accessible to a broader audience,” Almadrones said. “This trend is driven by the desire for practicality, variety, and versatility, as consumers appreciate the flexibility to stay current with technological advancements without financial strain.”