Website Closers® presents an eCommerce company that has a thriving customer base for their fully branded, proprietary Professional Haircare Product Line, which delivers a high level of new and recurring revenues on their Shopify website, on Amazon, and B2B via wholesale and distribution channels, including salons, hairstylist, and other beauty shops.
Their 13-year track record has helped make this brand well known in the space and a growing leader in this market. The enormous popularity of the hair care products market positions this brand to grow at an exceptional rate in the coming years, just as the overall industry is doing. Projected to grow to $102 billion by 2024, hair care products are items that women and men use daily and purchase quite often, and at the same time, beauty salons and other fashion-related businesses are eagerly looking to introduce new and innovative SKUs to their customers.
As buyers increasingly seek out all-natural products or those that address specific conditions, such as dry or thin hair, this industry is enjoying plenty of innovation with it comes to developing new products. The bottom line is that consumers care deeply about how their hair looks, and they’ve demonstrated an increased willingness to spend a higher amount of disposable income on products they like, especially millennials and Gen X buyers. There is a greater recognition today than ever
before of how important healthy hair is, and many of those consumers are no longer buying standard products designed for the masses.
Those trends have been particularly beneficial to this brand, and a review of their history should effectively demonstrate that.
Since inception, this brand has focused on providing professional hair care products using private formulations with 25 botanical extracts and sunscreens in every product. They now have 16 SKUs, all custom, with different sizes for each one. Formulated for them by a chemist, their water-soluble products are sulfate and paraben free, and are virtually weightless.
Their products are manufactured in the U.S. in two facilities and include hairspray, mousse, styling spray, shampoo, and recovery conditioner. Sales are evenly divided among most of their products, with their top-selling hairspray bringing in just 30% of revenue; thus, this brand is not dependent on one or two of its products.
Their customer demographics are strong, with their typical customer being women between the age of 45 and 60, with median income, and with fine or thin hair looking for a reliable and effective product they can use daily. As more of these customers make repeat purchases, their Average Order Value has increased from $47.77 to $50.14.
The company’s Shopify website now makes up for 47% of their direct-to-customer sales, while they have a growing presence on Amazon, which is now 15% of sales. Amazon has been beneficial to the company’s success in numerous ways. They operate on Seller Central and now make up to $25,000 in monthly sales on that platform, where their customer feedback has been highly enthusiastic. The company maintains a 5 Star Seller Rating. Their 16 products are also sold on Prime.
The company’s Shopify website, which was recently upgraded to be more interactive and easier to navigate, has the added advantage of making all their products available through subscriptions on monthly, bi-monthly, or quarterly shipments.
The company is also experiencing increased B2B sales that include selling wholesale to licensed salons and to distributors of hair care products. Their wholesale accounts now make up 32% of their profits, while an additional 7% come from sales to distributors.
The company stocks and ships out of their warehouse, where they maintain three months of inventory in stock at all times, as they make between 50 and 200 shipments per day. Wet goods are ordered once a month while aerosols are typically ordered quarterly.
One of the company’s most successful marketing tactics has been their use of video tutorials posted on Facebook that offer helpful advice about hair care. These video marketing posts have been a key to acquiring new customers and finding ways to re-engage with their existing base.
The company has a strong social media presence, with 14,000+ followers on Instagram and nearly 9,000 on Facebook. They have used these platforms to get to know their customers, understand their buying habits, and determine the best way to connect with them.
The company also benefits from an affiliate program through their Shopify site that offers 30% commissions to their affiliates. Their loyal customer base has continued to grow, boosted by a glowing review by YouTube personality Dominique Sasche, who posts videos for women in their prime, offering tips for transformative hair and makeup and fashion for all seasons. With 1.7 million subscribers, her review has been a major selling point for this brand.
A blog and new upgraded product photography on their website help round out their digital marketing techniques which have played an instrumental role in their growth.
Fortunately, the company still has plenty of scale opportunities. A key option would be to target their marketing to big box retailers, an untapped field for them. Another would be to use their Amazon platform to make an international expansion since they now sell primarily in the U.S. and Canada.
The current owner now employs two full-time workers, one who handles administrative duties and sales, and another who oversees the warehouse. A marketing agency oversees their website maintenance and advertising campaigns.
The current owner focuses on sourcing vendors for packaging, working with the company’s chemist on product research and development, and creating social content.
Hair care is a thriving industry and will remain so since the public’s appetite for trusted products that beautify their looks and gives them their own unique branding is unlike to sag anytime soon. This company has demonstrated how effectively a business can develop their own unique products and then attract a strong and faithful customer base for the hair care items they sell.
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