Website Closers® presents a well-established eCommerce Brand that sells apparel, housewares, and accessories in multiple B2B and DTC channels. As a leader within a specific niche of the fashion industry, the company offers a variety of styles found in the alternative scene but primarily focuses on gothic, punk, street, and emo. It has demonstrated a tremendous 47% YoY growth rate, boasts an incredibly loyal following, and enjoys multiple revenue streams.
Journey & Transition
Founded in 1999 as a modest online forum, the brand emerged from a passion for fostering a community for those intrigued by alternative lifestyles and music. An unwavering connection with its audience fueled a rapid rise to prominence.
The brand’s journey took a strategic turn in 2001 with the launch of a small eCommerce site, initially aimed at covering hosting fees but soon attracting attention from luminaries in the music industry.
By 2004, a social networking site that ended up boasting 7 million accounts was established, leading to the opening of a Manhattan-based brick-and-mortar store in 2008.
Recognizing the shift towards online retail, the founder closed the physical store in 2011, focusing on eCommerce. This shift, accompanied by product development and operational expansion investments, propelled the business to new heights.
From its humble origins, it has evolved into a leading force online in its vertical, characterized by sustained growth, profitability, and unwavering brand loyalty.
Business Broker Takeaway
1. It has demonstrated strong sales performance and consistent growth. In 2023, revenue exceeded $7 million, with projections indicating nearly $11 million for 2024. With a substantial audience, including many loyal individuals who have followed the brand since its inception 25 years ago as a modest online forum, alongside a social media platform that peaked with over 7 million users, there lies a significant opportunity for a prospective buyer to expand through numerous avenues.
2. Driving approximately 300,000 monthly visitors to its Shopify-built website is a comprehensive digital marketing strategy. This approach encompasses robust SEO practices, leveraging a social media following of 635,000, and targeted campaigns to an email and SMS database of 350,000 individuals. Additionally, the company utilizes Google Ads, collaborates with influencers, and operates an effective affiliate program, contributing significantly to its success. As a result, the team fulfills between 300 and 350 orders daily, with an Average Order Value of $82 and an impressive 30% Repeat Purchase Rate. Moreover, the brand boasts tens of thousands of 5-star reviews across various sites.
3. Notably, the business possesses valuable intellectual property, including over 300 original images and exclusive artworks that can be applied to a wide range of products. Some of these designs have been licensed to major retailers such as Hot Topic and Spencer’s, with repeat orders from these esteemed companies. The team consistently provides them with their latest designs, earning a 3% royalty on each item sold. This arrangement results in quarterly income ranging from $23,000 to $86,000.
Valuation Points
Several unique value propositions distinguish this business within the market. While it had been retailing its own branded products for some time, it wasn’t until 2020 that the company expanded its manufacturing beyond t-shirts, hoodies, and leggings. Responding to enthusiastic customer demand, management diversified the product line to include plush toys, housewares, bags, umbrellas, and more, fueling significant sales growth. Presently, own-branded products constitute 32% of retail sales and account for the entirety of wholesale orders.
Renowned musical artists such as Machine Gun Kelly, Demi Lovato, and Skrillex, among others, have sought sponsorships for their music videos and tours, showcasing a notable interest in the brand from mainstream culture. Notably, a popular Disney Channel TV show also placed a substantial order for its cast members to wear on-screen, underscoring the brand’s desirability and appeal. This presents a valuable asset for a prospective buyer to leverage according to their strategic objectives.
The extensive product catalog comprises 2,250 items sourced globally from various suppliers. In-house branded products are either procured from Asia or printed on demand at the company’s 15,000-square-foot warehouse in the US. Additionally, merchandise from other brands originates from China, the US, and the UK. The owner and his wife are instrumental in designing many products, often collaborating with freelance artists for specific projects.
Opportunities
Recent developments include being approached by major retailer Shein, with the company setting up a storefront yet to be activated on the platform, presenting a significant opportunity for further expansion. The establishment of a wholesale website in 2023 has enabled partnerships with 60 stores across the US and is rapidly developing. The brand has also ventured into co-producing products with leading retailers in the alternative fashion space, including designing five shoes with a prominent footwear brand currently in production. Additionally, ongoing collaborations with alternative fashion labels Whatever 21 and Demonia Cult Shoes demonstrate the brand’s continued appeal and relevance within the industry, generating excitement among thousands on social media platforms.
The company’s array of revenue-generating avenues signifies boundless potential. Coupled with its enduring presence, upward growth trajectory, and stellar reputation, this listing is a rare and highly appealing prospective acquisition.
