Reggie Milligan, founder of Mantry, provides a veteran's perspective on the subscription box industry, detailing its boom and bust cycles. He emphasizes that focusing on profitability and direct customer relationships, rather than chasing unicorn status, is crucial for long-term survival in the DTC space. This episode offers essential lessons for any ecommerce operator building a sustainable brand.
Key takeaways
Understand that profitability from the outset is more vital for long-term survival than rapid, venture-backed growth, especially in volatile markets.
Prioritize building direct relationships with your customers to foster loyalty and gather feedback, which is key to adapting and thriving.
Recognize that niche markets and seasonal demand (like gifting) can be strong drivers for sustainable growth, distinguishing your brand from mass-market competitors.
Be prepared to bootstrap and maintain control, as acquisition offers may not align with your vision for enduring growth and profitability.
Learn from industry cycles; the subscription box "fall out" of 2017 highlights the importance of resilient business models over fleeting trends.
"I'm like a dinosaur," said Reggie Milligan.
While literally hyperbole, there is some truth to his claim. Milligan is the founder and CEO of Mantry, a male-targeted food subscription box. Mantry, which is available in the U.S. and features up-and-coming American brands, has been around since 2012 -- it experienced the precipitous rise of subscription boxes and its fast decline. But the company is still around, still seeing growth and has some plans for expansion.
Milligan, a Canadian entrepreneur, joined this week's Modern Retail Podcast and spoke about the rise and fall of the subscription box industry. He was one of the first in the space, and Mantry got prime media placements in magazines like GQ and shows like Good Morning America. But in 2017, he said, "the bottom fell out."
While Mantry has received acquisition offers over the years, he's focused on continuing to bootstrap the company and still sees growing demand -- especially during gift-giving seasons. And Milligan also believes that while his business won't become a billion-dollar unicorn, the subscription brands that focused on profitability and speaking directly to their customers are the ones that can be around for decades.
"A lot of the smaller bootstrapped ones that were always profitable along the way kind of stuck it out," he said.
Frequently asked about this episode
What does this episode say about dtc strategy?
Understand that profitability from the outset is more vital for long-term survival than rapid, venture-backed growth, especially in volatile markets.
What does this episode say about customer retention?
Prioritize building direct relationships with your customers to foster loyalty and gather feedback, which is key to adapting and thriving.
What does this episode say about finance & fundraising?
Recognize that niche markets and seasonal demand (like gifting) can be strong drivers for sustainable growth, distinguishing your brand from mass-market competitors.
What does this episode say about founder & leadership?
Be prepared to bootstrap and maintain control, as acquisition offers may not align with your vision for enduring growth and profitability.
What does this episode say about dtc strategy?
Learn from industry cycles; the subscription box "fall out" of 2017 highlights the importance of resilient business models over fleeting trends.
