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RedBalloon Launches Online Subscription Model

Online retailer RedBalloon launches MarketPlace - a subscription model to deliver on aggressive growth targets

November 6, 2013: Australian online experience retailer RedBalloon.com.au has today taken another step in their growth story, rolling out a retail subscription model for leading local and international brands.

RedBalloon MarketPlace is part of the brand’s product diversification strategy that taps into the highly coveted recurring revenue subscription commerce model.

CEO Kristie Buchanan is confident there is an appetite for subscription commerce in Australia, labelling the launch as a new chapter in RedBalloon’s innovation story.

The 12-year-old business is aiming for upwards of 20 per cent growth this financial year, and recently hit the milestone of two million experiences sold since launching in 2001. It took a decade to sell the first million, and only two years to sell the second million – and this Australian ecommerce success story has.an appetite for even more growth.

“Key to our ongoing growth and success is never standing still or resting on our laurels,” Ms Buchanan said.

“Subscription commerce has risen as a major retail trend, gaining particular strength and traction across the US and UK markets. But Australia remains fragmented and dominated by many small players, so we saw this as a great opportunity to become a leader in the local market.

“This new offering is all about creating and fostering an ongoing relationship with our customers – surprising and delighting them with a new product each month.

“We have reset our BHAG (Big Hairy Audacious Goal) and are now aiming to deliver five million ‘good times’ by 2020. That’s five million customers rating us a nine or 10 out of 10 – we don’t want just customers, we want happy customers and raving fans.”

RedBalloon MarketPlace will provide customers with access to new and gourmet brands and products that are not readily available elsewhere, across two major categories: Gourmet Food/Wine and Lifestyle (health, beauty, apparel and accessories).

Products are available as a one off gift, or as three, six or twelve month subscription, and unlike many other subscription offers in market, will contain full sized products – this is not a sampling opportunity but a beautifully packaged experience in a box each month. All with the convenience of online shopping.

The company’s “Happiness Guarantee” enables customers to switch between subscriptions or exchange for RedBalloon credit if they are not happy – no other subscription model in market provides such assurance or flexibility to customers.

The 60-strong product range represents a number of high profile and desirable brands, including Maggie Beer, Simon Johnson, Ghermez Cupcakes, Max Brenner, Hank’s Jams, Bitton, Pukara, Toby’s Estate, Republica Coffee, Spotted Cow Cookies, as well as a huge range of wine and beer products hand selected by the team at Shortys Liquor.

Prices will start at $29 a month, including delivery and transaction fees – so there are no hidden costs to customers. See more at http://www.redballoon.com.au/subscriptions

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For more information, images or to arrange a sample, please contact: Lauren Ashton, PR Manager, RedBalloon – lauren@redballoon.com.au / 02 8755 0034 / 0404 136 765

About RedBalloon

RedBalloonhas started a happiness revolution - one amazing experience at a time! We believe everyone deserves to have fun, feel good and be happy. We believe happiness starts with a drop, becomes a ripple and creates a wave. And we believe happiness is amplified when shared. Put simply, we are in the business of fun and are passionate about giving people more good times. RedBalloon Experience Vouchers, Gift Certificates and Gift Boxes can be purchased online or in selected retail outlets