Subscriptions have become commonplace. From digital content to home appliances and furniture, many companies in a wide variety of industries have entered the subscription business. The market value has also been rising steadily year by year, with the domestic market size expanding from approximately 562.7 billion yen in 2018 to approximately 943 billion yen as of 2023.
This trend is expected to continue in the future, and it is said that it is only a matter of time before the market size exceeds 1 trillion yen. The background to this enormous market size is the spread of smartphones and Wi-Fi, and the shift in consumer needs from ownership to usage, but at the same time, some companies that have entered the subscription market have failed in the subscription business.
In the automotive industry, GM (General Motors), a major American company famous for Buick and Cadillac, and BMW, a major German company, were the first in the industry to enter the subscription business and develop services.
In particular, GM launched a groundbreaking service that allowed customers to freely choose from up to 18 Cadillac models per year and use them as much as they wanted for $1,800 a month.Although this managed to secure some temporary users, the costs were higher than initially expected and the service was not profitable.
