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What is market penetration?

The subscription business, the mode of buying products through a monthly box that comes to your home, continues to change and grow. Market Development While market penetration focuses on obtaining more customers from those seen as potential customers (often those who have expressed an interest in the product category but not necessarily the business's specific product market development focuses on increasing the number of potential customers.

One concerning factor for the beauty business is that while all categories of subscriptions are up year-over-year, beauty subscription customer visits are flat. It may also be that email is used by subscription box customers to adjust their accounts, update their selections or cancel their monthly box and subscription customers are more attuned to watching their email more regularly and responding. Most commonly, market penetration in this form is expressed as a percentage, calculated by multiplying the current sales volume by 100, and then dividing that amount by the total sales volume of all similar products, including those sold by competitors.

It seems likely that those categories will change over time. Subscription customers are much more likely than other retail customers to shop on mobile.