Here is a really interesting story on how a very successful subscription box is rebranding and changing direction.
The Chicago Tribune reports on the re-branding of Mystery Tackle Box.
Mystery Tackle Box, based in Chicago, has built a growing business out of sending subscribers fishing tackle for $15 to $25 a month. Revenue will top $11 million this year, up from $5 million a year ago, said CEO and founder Ross Gordon.
But with doubts about subscription boxes’ long-term profitability, the four-year-old company is planning to change its name and expand its mission. Next month, Gordon plans to rebrand as The Catch Company.
Mystery Tackle Box will remain a product, and Gordon will also introduce an e-commerce site where customers can buy tackle the company makes itself as well as other fishing gear. He hopes the brand change will keep the company going for 50 or 60 years, longer than a subscription box service might survive.
Today, the company is up to 20 employees and looking to double in the next two years. In late 2015, it raised $1.3 million led by Chicago-based Guild Capital. In June, it moved into a 3,500-square-foot office in the West Loop that features a Great Wall of Tackle.
“Our core customer is addicted to excitement — that’s one of the reasons why they fish,” said Gordon, a serial entrepreneur who previously founded two companies and sold one of them. “The monthly suprise element is very exciting to them.”
Although business is good, Mystery Tackle Box continues to face competition from major retailers focused on outdoorsy customers. Earlier this month, outdoor gear retailer Bass Pro acquired competitor Cabela’s for $4.5 billion. Brick-and-mortar shops such as these dominate the $47 billion sporting goods industry.
Read more about the re-branding of Mystery Tackle Box into The Catch Company