Los Angeles-based company Loot Crate has come up with a unique business model to tap into the passions of gamers and self-described “geeky” consumers. The company offers a subscription service whereby customers receive “crates” (actually small boxes) of six to eight items selected to fit within a unique theme such as “villains” or “transform.”
For niche customers, there is surely a motivating allure in the idea of the company packing supplies in Los Angeles for distribution to a unique community of subscribers across the US and in nine other countries. Whether the customer is on the other side of the world or just around the corner in Los Angeles, this shipping service provides him with a sense of convenience, exclusivity, and mystery, while also serving as promotion for the brands packed into each crate.
If Loot Crate continues to be successful, it may serve as an example for other companies who serve niche markets. By partnering with good crate shipping companies, similar such start-ups can keep their costs low while enticing both customers and vendors by promising that tailor-made gifts will be delivered every month to the very consumers who want them most.