The German online pet supply store Zooplus is launching a subscription program in Belgium and the Netherlands. In total, the Zooplus subscription model will now be available in 8 different countries. 

Zooplus aims to gradually expand this model to all the remaining markets in which it currently operates.  According to the retailer, it has online stores in 30 different European countries. In 2023, it launched a flexible subscription program in Germany and Austria.

Now, the subscription program is also available to customers in the Netherlands and Belgium. With the subscription, customers select their favorite pet products from a large selection of items. They can indicate their preferred shipping frequency, after which the product will be automatically and regularly delivered to them, in a way similar to what Amazon offers. 

This is especially useful for products such as pet food or litter, as owners need to order these frequently. The program can be adjusted or paused at any time.

“The launch of our subscription model in the Netherlands marks a new milestone in delivering on our ambition to become the ultimate destination for pet parents across Europe. By offering the best choice and most convenient service, we aim to elevate our customers’ experience and drive further loyalty”, said Geoffrey Lefebvre, CEO of Zooplus.

The booming pet market 

According to market research by Businesswire, the global pet care e-commerce market is expected to reach a value of $87.43 billion by 2027, growing at a CAGR of 12.49% from 2020 to 2027. And it is assumed that nearly one-third of global pet care sales will be made through e-commerce by 2026.

Another report by Statista shows that the global pet care e-commerce market size was valued at USD 20.75 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.3% from 2020 to 2027. 

Technological advancements coupled with rising pet adoption are primary growth drivers for this market. For instance, mobile adaptivity allows better customer experience and single-touch purchase options. Increasing internet penetration is bolstering the smartphone-using population across the world. Rising mobile adaptivity, incorporation of single-touch purchase options, and user-friendly web pages have increased the popularity of e-commerce websites.

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Spotify VS. Apple Music

Due to their free version, Spotify will likely be able to top Apple Music in overall users (both in the US and worldwide). Spotify already has far more international subscribers and active users worldwide than Apple Music. This is probably caused by Spotify's free, ad-supported tier. In the last quarter of 2018, Spotify reported 207 million active users worldwide, 96 million of which are paid subscriptions.

Meanwhile, Apple Music, which doesn't offer an ad-supported option, only has about 50 million subscribers worldwide. Spotify's free tier is likely key to converting users abroad. It provides an indefinite and low-risk way for users to test the app's interface and features before financially committing. Apple's chief advantage is its addressable base of iPhone users for whom the Apple Music app is pre-installed. Apple estimates there to be 101 million active iPhones in the US and nearly one billion worldwide. Apple may not offer a free version but they do offer a free three-month trial. The app is pre-installed on iPhones, which reduces friction and encourages sign-ups. Apple may also stand to lure more subscribers to its service through features like lyric-based song search and exclusive content launches.

Apple's Focus

Apple has been focused on increasing its services revenue as iPhone sales are not as promising as they once were. iPhone sales were 15% lower in 2018 than in 2017, while Services revenue (including Apple Music) increased by 87% to $37.2 billion in the same year.

Apple could bundle together some of its services like Apple Music, Apple News+, Apple TV+ and Apple Arcade to boost its recurring revenue and drive sales. Given Apple's approach with other services — which are largely subscription-based — it is unlikely that Apple will create an ad-supported option for its Music app. A services bundle, on the other hand, seems logical.

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