The Rs 36,000-crore opportunity: How marketers are cashing in on the subscription model

In a bid to move past one-off sales and fleeting consumer attention, brands are increasingly embracing subscription and membership-driven ecosystems that prioritise retention, exclusivity, and emotional engagement over mere transactions.

From personalised rewards and tiered benefits to early access and premium experiences, marketers are reimagining loyalty as a long-term relationship rather than a points-based exchange. The shift reflects a broader evolution in consumer expectations — today’s audiences seek belonging, consistency, and value that extends beyond discounts or one-time offers. According to experts, the subscription model is witnessing robust growth in India. Valued at around ₹1,200 crore in 2017, the market is projected to surge to nearly ₹36,000 crore by the end of 2025, underscoring its rapid adoption among Indian consumers.

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DreamFolks is witnessing this shift firsthand. What began as a travel-focused benefits model has evolved into a holistic lifestyle ecosystem with the launch of the DreamFolks Club Membership, available in three tiers - White (₹10,000), Orange (₹30,000), and Black (₹50,000). Each tier is designed to deliver curated experiences across travel and lifestyle, including exclusive lounges, social clubs, golf sessions, highway dining, and spa access. The focus extends beyond monetary value to create a sense of privilege, comfort, and everyday convenience for members.

Liberatha Kallat, Chairperson & Managing Director, DreamFolks Services Limited, stated, “Subscription and membership models have therefore evolved from being discount-driven propositions to ecosystems of belonging and exclusivity. The success of such models today lies in how seamlessly brands integrate personalization, premium access, and emotional engagement into the offering.”

At Zupee, the membership model goes beyond convenience, it serves as an extension of the brand’s entertainment ecosystem. Through the Zupee Plus Membership, the platform offers a seamless fusion of gaming and storytelling, giving players ad-free access to its most popular titles along with exclusive entry to Zupee Studio’s short-format dramas.

“For us, the real value lies in deepening the emotional connection with our community by making their engagement more personalized, immersive, and rewarding. Our communication focus has therefore shifted from pure acquisition to sustained relationships built through a mix of in-app experiences, CRM, and creator-led storytelling that keeps players entertained, valued, and part of a larger community,” said Govind Mittal, Chief Spokesperson at Zupee. 

Experts too agree that Indian audiences are gradually warming up to the subscription models. Keyur Dhami, VP – Center of Excellence at WebEngage, highlighted, “Indian consumers are steadily embracing subscription and membership models, particularly in categories with regular or predictable consumption needs.”

He explained that for instance, NetMeds has built a robust subscription model for medicines - ideal for chronic ailments like diabetes, where predictable monthly demand allows for automatic billing and timely delivery.

Beyond healthcare, categories such as skincare and beauty also lend themselves well to subscriptions due to consistent usage and replenishment cycles. On the membership front, brands are innovating rapidly, First Club is developing an online membership-first model inspired by Costco’s value proposition, while ZeptoPass, BBStar, and Zomato Gold are monetising loyal, high-frequency users through premium offerings.

According to Dhami, from Shoppers Stop to leading airlines, loyalty programs have long existed in India, but the willingness to pay for access and exclusivity marks a cultural shift. These models now offer consumers not just convenience and savings, but a deeper sense of belonging and value.

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Subscription models

Subscription models are transforming brand–consumer relationships by replacing one-time purchases with recurring, value-driven engagement. Offering convenience, consistency, and personalisation, they thrive in categories with regular usage and are fast gaining traction among Indian consumers seeking seamless, hassle-free experiences. 

Siddhartha Singh, Co-founder of Black Cab said, “Subscription-based models have a unique ability to build loyalty and foster emotional connections between brands and consumers. When consumers commit to a recurring payment for a service or product, they naturally become more invested in the brand. This not only strengthens brand identity but also reduces the likelihood of switching, resulting in deeper engagement and long-term loyalty.”

This was reflected by Sourabh Kumar, Founder and CEO of PunToon Kids, who said the brand’s subscription model extends its community experience rather than serving as a mere convenience. While the app offers free games and learning activities, subscriptions unlock advanced levels and exclusive content, ensuring engagement and safe, value-driven learning for families.

“While we still invest in acquisition campaigns to bring new users on board, a significant portion of our budget is now focused on retention and loyalty initiatives. This includes promoting new game levels, exclusive content, and interactive features to existing users, as well as reinforcing the educational and safe aspects of our app,” he added. 

According to Singh, brands are becoming more strategic with discounts, using them not just to drive sales but to build community and exclusivity. By linking savings to curated experiences or premium memberships, they create a sense of belonging where offers feel like privileges rather than promotions. The focus now lies less on the discount itself and more on who receives it, turning selective access into a powerful tool for loyalty and emotional engagement. 

Experts also explained that when it comes to driving subscriptions, different channels play different roles. Singh highlighted, “Performance marketing often drives conversions, influencer collaborations help amplify reach, and WhatsApp enables personalized communication. Ultimately, a robust CRM strategy is what retains customers and keeps them consistently connected to the brand over time.”

Dhami added that for subscription-led brands like Healthify, influencers play a smaller role initially. The focus is on trial packs of two or three months to help users see results and build habits that lead to paid conversions. Here, CRM and WhatsApp marketing prove most effective for nurturing engagement, with influencer or user-generated content integrated into these channels to reinforce behaviour and drive long-term subscriptions.

Also read: When feelings fuel loyalty: How emotional commerce is turning brands into bonds

The road ahead

Experts believe that with Gen Z and millennials now comprising over half of India’s population, subscription and membership models are poised for strong growth over the next few years. This generation’s preference for convenience, personalisation, and connection makes such models especially appealing. However, experts note that subscriptions will see the most success in categories with regular, ongoing consumption.

“Products like toothpaste, brushes, haircare, skincare, medicines, or nutraceuticals are things you use consistently and ideal for subscriptions. For these, brands can encourage users to subscribe after a few initial purchases or start with a small, freemium subscription and gradually move them to a larger plan,” Dhami said, and added that for other categories, like furniture or one-time purchases, subscription won’t be the default retention model. Instead, retention will rely on loyalty programs, exclusive drops, or special discounts to keep customers engaged. These strategies help maintain curiosity, encourage repeat purchases, and ensure long-term engagement, even in categories where subscription isn’t practical.

Meanwhile, Singh observed that adoption will continue to rise as brands leverage subscriptions to deepen engagement and loyalty. Digital-first platforms like Netflix, Amazon Prime, and Zomato Gold already demonstrate how recurring models drive repeat usage and emotional connection, a trend mirrored globally by platforms like ChatGPT, which are fostering similar consumer stickiness.

“As the market matures, we expect loyalty and membership programs to become an intrinsic part of brand identity in India, a default retention model where emotional equity will increasingly outweigh transactional appeal. In this landscape, data-driven personalization, direct digital channels such as CRM and WhatsApp, and trusted influencer voices will play a defining role in sustaining engagement and advocacy,” Kallat of DreamFolks concluded.