Within weeks from launching, Loot Crate became extremely popular among geeks and gamers. A Lucrative Marketing Strategy That Made Millions The first box contained a greeting card, a Marvel action figure toy, a few energy snacks, a superhero-inspired cologne, and a key chain. The initial price of the Loot Crates was $13.37, an ironic gamer price denoting 'leet speak', which also gathered attention. The mystery box market was non-existent in 2012, so Chris and Matthew had to work out all the features and pricing of the boxes themselves. What subscribers also loved was the excitement of opening a box without knowing what was inside it. The boxes contained gamer toys, food, and other gaming-related products with the purpose of grabbing the attention of gamers and geeks.Ĭhris and Matthew called the subscribers 'Looters', and each box contained a unique 'Looter number' - something they knew geeks would love. The first month, they had more than 200 subscribers, so the duo packed 220 boxes in Matthew's back garden in just 8 hours, and shipped them all by standard UPS mail. They came up with the name and logo in the first 48 hours as well, and the first Loot Crate box was shipped in August 2012. No, this wasn't just a simple business exercise - Loot Crate was on! They created Loot Crate just a few days after a weekend business retreat, acquiring 50 subscribers just 48 hours after launching. When Matthew heard the idea, he was immediately in - and their journey began! 48 Hours For The First SubscriptionsĬhris had the business know-how, and Matthew knew how to maintain an online presence. The concept was straightforward - put Comic-Con in a box. Participants at the weekend event would pitch their ideas with new, out-of-the-box business models, and Chris' idea was a monthly subscription service for geeks and gamers. Matt and Chris met at a business seminar in Los Angeles in August 2012. He started a consulting agency focused on social media outreach, and worked with big companies during the late 2000s and early 2010s, helping them promote their brands through social media. He quit and decided to follow his own path in the corporate world. However, after leaving school, Matthew started working for big companies like Microsoft and Apple, but soon learned that working for a corporation bored him to death. He took up a job as an editor for his high school newspaper and became obsessed with creating new content. On the other hand, Matthew was interested in technology from a very young age, which led him to develop a passionate love of gaming and consoles. A Claremont McKenna College alum, Chris had participated in several hackathons following his graduation, which included developing a dating app called Box Office Buddies. Chris and Matthew's Ventures Before Loot CrateĬhris Davis is the son of tech-giant Qualcomm's CFO George Davis, so the idea of starting new businesses was innate in him. This is the story of how one man, supported by a fellow visionary, turned his geekdom into a $160 million dollar business, only to become a victim of his own success. The features of the boxes, or 'the loot', ranged from t-shirts and action figures, to snacks and badges - basically, geek heaven! The idea was for the most passionate comic book, movie, and video game fans to subscribe to the service and receive one box a month delivered to the door. The founders of Loot Crate, Chris Davis and Matthew Arevalo, didn't dive into an existing market - instead, they created a whole new market of subscription-based mystery box services. Loot Crate is the most popular subscription box service in the world and the idea behind it was very simple: Comic-Con in a box!
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