Kiwi Crate was a successful subscription box company sending hands-on activity kits for kids. The company expanded aggressively, adding lines for different age groups. Buoyed by VC funding, the company attempted to apply its model to elder care: subscription boxes with activities and cognitive exercises for seniors.
Company Data
- Founded: 2011 — Sandra Oh Lin
- Failed Expansion: Elder care line discontinued
Kids' activity boxes and elder care boxes are completely different businesses. Parents buy kids' boxes for entertainment and education. Elder care boxes involve healthcare needs, caregiver dynamics, and a completely different buying process. The company's core competency—designing fun kids' crafts—didn't transfer. The elder care line lost money and was quietly discontinued.
Key Lesson
Adjacent markets aren't always adjacent. A great company in one category doesn't automatically succeed in a different one, even if the physical product looks similar. Core competency is specific.