Birchbox, Stitch Fix and Amazon Dash buttons all show the potential of leveraging mobile technology for new merchandising and distribution strategies that are finding passionate customers. Consumers clearly want easier, more convenient and entertaining ways to shop, with subscription boxes the latest attempt by CPG brands to understand and meet shoppers? evolving needs in a digital world.  

?CPG marketers and other traditional retailers have taken note of the incredible rise in popularity of subscription boxes,? said John Fetto, senior analyst for research and marketing at Connexity. ?In the US, visits have increased more than 14 times during the last three years with visits to leading subscription box sites reaching 22.4 million in June. 

?Consumers are attracted to some of the leading brands in this space because they offer prices that are highly competitive with existing CPG offerings, but with the added convenience of being delivered to their door,? he said. 

CPG marketers such as P&G, which owns Tide, and Unilever have tried repeatedly to build a direct sales business for their commodity prices so they can learn more about their customers, information that is typically jealously controlled by retailers. However, several previous attempts, such as P&G?s Reflect.com, never caught on with consumers in a big way. 

Mobile is helping startups unlock exciting new ways to shop. For example, Stitch Fix offers an online service that sends five handpicked fashion items personalized to each user via data. Birchbox offers a subscription service to trial new beauty items. 

Now that Amazon?s Dash buttons ? which are offered for a number of CPG brands ? are gaining a lot of attention, the pressure is growing for CPG marketers to find meaningful direct sales strategies while shopping habits are still evolving and before new habits take hold. 

P&G is beta testing Tide Wash Club in Atlanta. The subscription service for the company?s dissolvable Tide Pods capsules offers free shipping for regular deliveries. 

Rather than building a new service from the ground up, Unilever is laying out $1 billion to acquire Dollar Shave Club, which has grown quickly over the past few years by offering grooming products to men on a subscription basis. 

CPG marketers hope that mobile technology paired with a subscription model can bring enough sizzle to direct sales to attract a large number of consumers. 

Once the relationships are established, P&G and Unilever are likely to try to try to trial and cross-sell products with members. 

?Once a company has a shipment going into a home on a regular basis, they can use that box to include other products ? often samples ? of things they think their customers may enjoy, hopefully resulting in a larger basket of goods,? Mr. Fetto said. 

?Consumers like the element of surprise and curated nature of subscription boxes, which can turn normally mundane purchases, like razors or snack food, into exciting experiences that leave them wanting more,? he said. 

Mobile is an important part of most successful subscription services because the technology brings added ease and convenience. For example, Dollar Shave Club offers a popular app that can be used to join, manage and track orders as well as purchase additional items. 

The mobile Web is also important for subscription services. 

?Mobile devices drive a greater share of visits to subscription box sites,? Mr. Fetto said. ?One of the reasons for this is because many of these companies keep their customers up-to-date with their product selections as well as the status of each delivery. 

?As consumers are increasingly accessing email via a mobile device, mobile browsers are normally the access point with subscription box brands,? he said. ?It?s unlikely that mobile apps will be that important for all but the biggest subscription box players as consumers are generally less likely to download retail apps, unless they?re tied to discounts. 

?So mobile optimized sites is where these companies should focus the bulk of their efforts. There is an opportunity, however, for SMS to play a role, especially in the notification of shipping status.?