The kitchen industry is evolving at lightning speed. Therefore, it is always good to take a look at the latest trends and innovations. One topic generating increasing attention recently is the rise of kitchen subscriptions. This concept, in which consumers lease rather than buy a kitchen and associated appliances, could define the future of the industry. For this edition of Kitchen Construction, we consider the potential impact on the business model of kitchen specialty stores.
Subscription forms have actually - without us perhaps realizing it properly - already become more or less the norm. Think of listening to music (Spotify) or watching movies (Netflix). They are successful business models. Therefore, it is actually not so surprising that the kitchen industry is also exploring this concept of subscriptions. Basically, the idea is actually quite simple: instead of buying a kitchen, you subscribe to a kitchen. For a monthly fee, you get access to the latest kitchen appliances and designs, including maintenance and upgrades.
Consumers can easily upgrade to the latest technology without making a large one-time investment. This is especially attractive to young professionals and urbanites who are not fundamentally as brand loyal and who just want flexibility.
Subscriptions often offer full maintenance services, meaning consumers don't have to worry about repairs or replacements. Just like that leased car: is there a scratch on it? Does it need a repair? It gets fixed right away for the consumer!
Manufacturers and kitchen specialists will not escape adapting their business models in the coming years. One-time sales transactions ("Please - here's your kitchen") will see us shift to a subscription system, which therefore, within kitchen specialty stores, will require an overhaul of finance, customer service and logistics. And, for a different mindset!
To ensure subscriber satisfaction, companies must ensure constant quality control and prompt service. This can be a challenge, especially as the number of subscribers grows. On the other hand, the (commercial) danger lurks: a subscription is cancelled in a flash. Consumers are quick to make their judgments and are not afraid to share them publicly on social media. That's something you have to deal with as a kitchen manufacturer or specialist.
Technology obviously plays a crucial role in the successful implementation of kitchen subscriptions. Smart kitchens equipped with Internet of Things (IoT) devices can provide real-time updates on equipment status and even predict when maintenance is needed. This increases efficiency and provides a seamless user experience.
But also: a smart refrigerator that automatically orders groceries when supplies are low, or an oven that suggests recipes based on the ingredients you have on hand. These technologies, coupled with a subscription, make life not only easier but also more interactive and personal.
We can conclude that the steady rise of kitchen subscriptions presents opportunities and challenges for kitchen specialists. To be successful in this new market, companies must be flexible and willing to invest in technology and customer service. By working with technology partners and responding to the needs of the modern consumer, kitchen specialists can not only survive, but thrive in this changing landscape.
One thing is certain: the kitchen industry is on the brink of an exciting transformation. It is up to companies to seize this opportunity and reinvent themselves in an era of subscription and continuous innovation.
Everything gets used! So even the (always spoiled) consumer will eventually be enthusiastic about this. One drawback: if, unexpectedly, you haven't paid off your monthly subscription, they can put your kitchen on hold from the outside. Just as an Internet provider will immediately turn off your Internet at home, the kitchen manufacturer will be able to put the oven in the dark. Well, at that point you'd better hope you're not cooking that tasty chicken. It will just be a cheese sandwich at that moment anyway.
Sources: KitchenAid, Shopify, 15 Kitchen Appliances & Design Trends for 2024 and Later