Subscription Box - Apparel
Three companies of apparel subscription boxes in the United States are Le Tote, Stitch Fix, and Trunk Club. Additionally, we calculated that the average price per subscription box is $68.40, and the average churn rate is 36.6%.
1. Le Tote
- Le Tote offers a monthly subscription box of rental apparel for women in the US that contains between eight and 15 clothing pieces and accessories they can wear for the entire month, and then return the items for free to Le Tote. They can also choose to keep the items they want with a discount on the cost of the item.
- The price per subscription is $79 per month for boxes with eight items, $99 per month for boxes with ten items, and $119 per month for boxes with 15 items. Additionally, if the subscriber chooses not to receive accessories, they can get a lower price.
- Le Tote's retention rate is 94% or a churn rate of 6%.
2. Stitch Fix
- Stitch Fix is the most popular apparel subscription box in the US, offering clothes based on the person's style preferences, budget, size, maternity clothing, and apparel for men, women, and kids. The subscription process includes a detailed survey to determine a person's preferences.
- In each box, the person receives five clothing items and accessories selected by a stylist. The person can then decide which items to keep and which ones to send back.
- The price is $20 per box, and the client can choose to have automatic deliveries every two to three weeks, monthly, every other month, every three months, or manually without a subscription.
- The retention rate was 86% in 2017 or a 14% churn rate.
3. Trunk Club
- Trunk Club is a subscription box in the US by the Nordstrom company, that requires the user to complete a survey so the stylists can match the apparel items to each person's size, budget, style, etc. They even offer the option to review the trunk before it ships and to contact the stylist for special needs selections.
- The price per box is $25, which is applied as a credit if the client chooses to keep an item.
- The subscription box can be received whenever the client chooses or scheduled for automatic delivery every month, quarter, or any interval the client prefers.
- The six-months retention rate is under 10% at approximately 8%.
- The median churn rate of subscription boxes is 10.54%.
To calculate the churn rate of the companies, we looked for the official data presented by the company, and if not available, the retention rate, which is the direct opposite of this value.
For example, for Le Tote, the retention rate is 94% which means, the churn rate is 6% (100 – 94 =6%), for Stitch Fix the retention rate is 86%, which means the churn rate is 14%, and for Trunk Club that has a retention rate under 10%, the churn rate would be a little over 90%.
We calculated the average price of the subscription boxes in the US from the prices of the brands identified:
Stitch fix: $20 per box.
Trunk Club: $25 per box.
Average price: ($79+$99+$119+$20+$25)/5 = $68.40
The churn rate was calculated from the rate per brand identified above: (Le Tote 6% + Stitch Fix 14% + Trunk Club 90%)/3 = 36.6%.