Warehouse adds online subscription service

AUCKLAND: The Warehouse Group has launched a subscription service as part of its online shopping platform TheMarket, offering Amazon Primetype perks such as free trials to Sky Sports Now and Neon.

TheMarket’s subscription service is called TheMarket Club and was launched yesterday.

Subscription to TheMarket offers shoppers free delivery for orders over $45, exclusive deals and discounts, a ‘‘VIP customer service‘‘ and other perks such as one and three months’ access to Sky Sports Now and Neon, as well as other offers such as a $35 kickstart to investment scheme Hatch for $5.99 per month or $59 a year.

TheMarket’s move to a subscription model is similar to what ecommerce giant Amazon offers through its popular Amazon Prime membership.

Justus Wilde, chief executive of TheMarket, said the subscription model was the next step in the growth aspirations for the platform, which was launched three months ago.

‘‘We are anticipating significant growth this side of Christmas, particularly as we hit some key shopping events, such as Black Friday, where customers will be able to shop all the deals that matter with free shipping, then the preparation for Christmas Day itself,’’ Mr Wilde said.

‘‘TheMarket Club offering free shipping across the site will be a gamechanger for our customers.’’

Retail analyst Chris Wilkinson said TheMarket’s move to operate a subscription model like Amazon was a strategic attempt to snatch a dominant market share in the country’s growing ecommerce market.

However, the Amazonesque retail model would face some challenges in this market, he said.

‘‘There are some deals [to be had], but there are a multiplicity of deals in this space. If you’re with Vodafone, then you get this [streaming service] for free, or you get something else that you pay a bit extra for. It’s quite a complex market. Unless it is something unique [it will be hard to crack],’’ Mr Wilkinson said.

‘‘The difference with Amazon Prime is it is their own product. It’s completely different.’’

Amazon has its own production division and creates its own video and streaming content that it offers as part of Amazon Prime subscription, which in itself drives millions of memberships. The subscription aims to provide convenience and everything in one place.

‘‘What could be a gamechanger for [TheMarket] is if they were able to team with one of the big supermarkets.

‘‘This is one of the steep changes Amazon has done in the United States — owning and working with aspirational food brands . . . The Warehouse’s work is admirable, but it is really going to rely on a critical mass of consumers to embrace this,’’ he said.

‘‘The offers have to be compelling and the benefits have to ‘wow’ and customers have to be ordering enough with TheMarket to make this worthwhile.’’