Distribution brands are banking on subscriptions to get back on their feet

Have a water leak in your bathroom plugged by Fnac Darty? Repair your dishwasher using the assistance system subscribed to E.Leclerc? Faced with consumers keen to make their products last, whether for ecological reasons or to limit their spending, retail brands are all developing activities to sell services around the products they offer on their shelves. Since 2019, the Fnac Darty group has already been offering Darty Max, a subscription allowing unlimited maintenance and repair of household appliances, whether they were purchased from Darty or not.

Insurance also available from its competitor Boulanger, for a price range between 9.99 euros and 19.99 euros per month. But Fnac Darty recently went a step further. On November 7, he launched Maison Relax, another unlimited subscription “for procedures and small jobs around the house”which allows the individual to“be put in contact seven days a week with a plumbing and electrical expert” from an approved network of 4,000 professionals in France. Far from his usual activity.

In DIY, Leroy-Merlin renovates apartments and houses with Leroy-Merlin Studio, while Castorama rents drills, sanders and other tools, in partnership with Loxam. In sport, Decathlon repairs bicycles, scooters, treadmills, golf clubs and rents, throughout France since autumn 2021 in the form of a monthly subscription, sports equipment accompanied by its associated services (breakage insurance, flight, annual interview, coaching, etc.). In 2022, 21,600 subscriptions have been taken out, specifies the brand.

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Even supermarkets are expanding their scope: since November 9, E.Leclerc has been offering the sale of spare parts for household and multimedia appliances and video repair assistance, in partnership with SOS Accessoire, a European specialist in self-repair. Since mid-November, Franprix has been testing the rental of raclette machines, drills and even video projectors in Paris and Lyon.

Convince of the merits

The shift between commerce and service is “obvious to usconfirms Enrique Martinez, general manager of Fnac Darty. We transformed a model that was essentially based on the act of purchasing into an economic plan based on subscription to limit our dependence on the sale of products”. Eleven million customers have a subscription (loyalty program, service program, warranty, repair, etc.), of which 1 million have subscribed to Darty Max. The group’s objective: to double this figure in 2025, thanks in particular to the recent launch of a multimedia security pack. “Services represent around 15% of our activity and add profitability, their margin increasing, when product turnover is generally stable”explains Mr. Martinez.

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