Website Closers® presents a 30-year CPG Brand operating in the profitable Women’s Hygiene Vertical. This trailblazing company was the first to market all-natural 100% cotton tampons in its native Australia, and the sales of that product enabled the company to expand its product line to include additional evergreen products such as sanitary napkins, overnight pads, and pantie liners, all with a cotton coversheet.
The business targets its products almost exclusively to wholesalers; the product array is being sold in supermarkets and pharmacies across Australia and increasingly in nations that include New Zealand, the UK, Spain, and Kenya. Retail clients know customers appreciate the high quality and affordable pricing of this brand’s products, and the company now has a stunning 100% Repeat Customer Rate and is processing new orders daily.
While the quality and uniqueness of their products have been significant factors driving sales, the company also enjoys growing profits because they recognized that women consumers were looking for brand name products they could trust and so they stick with the brand, thus increasing the lifetime value of each wholesale client and their consumers. The business sources its products from reliable and experienced manufacturers in Europe and China, and each product is designed exactly to their specifications and then sold under the company’s brand name.
Women know their brand name and have come to trust and rely on it, which is why the company enjoys such high recurring revenue. The company’s wholesale channels continue to expand, in part because the company’s products are designed for women of all ages and every stage of a woman’s life. For many of these customers, the company’s products have been daily essentials.
Feminine hygiene products have a strong global market value of $32 million, with projections that this industry will grow by 9%, reaching $84 million by 2034. This market serves a wide range of customers, each with different needs when it comes to their hygiene. Studies indicate that customers are looking for products that can meet a variety of their health needs, particularly innovative feminine hygiene products that improve on earlier models. This company has been able to address their need for comfort, quality, and price.
This is a formula that a new owner could quickly replicate in other countries, including the U.S. There are plenty of clear opportunities for a U.S. Buyer to acquire this company and then scale it quickly. That could include expanding the company’s sales channels to include Amazon, Walmart, and other popular eCommerce platforms, investing in paid media campaigns on Google, and targeting additional countries where their evergreen products would be popular, including the massive market in North America.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. Excellent Reputation. After 30 years, the company has established an exceptionally strong brand reputation and has become a widely trusted name in the field of women’s hygiene. Customers have given their products glowing reviews, citing their comfort, purity, and reliability. That buyer enthusiasm has helped convince a rising number of wholesalers and supermarkets that their products will guarantee steady sales, and they have. With a $25k (USD) Average Order Value, these B2B clients return frequently, making bulk orders and knowing their products won’t stay on their shelves for long. That brand reputation has also enabled the company to enjoy sales outside of Australia, and the company’s unique cotton products free of bleach and synthetic materials have also been major selling points for years.
2. Solid Operations. The business maintains an experienced and skillful team that manages daily tasks. That includes a director of operations, a sales director, a receptionist, and three warehouse employees who manage order processing at the company’s 4,000+ square foot warehouse. Due to the high demand for its SKUs, the company maintains at least $1 million worth of inventory at all times and places new inventory orders monthly.
3. Strong Marketing Tools. With an excellent brand reputation for products that customers are eagerly buying, word-of-mouth referrals have certainly helped this business attract new wholesale partnerships, both inside Australia and in other countries. But the business hasn’t relied on that and has been using digital marketing to direct new clients to their website. That site is fully optimized for popular keywords that retailers are putting into search engine queries, and the site has an educational and informative blog that talks about their products and women’s health issues. They employ the services of a social media agency for their social posts, which have given them a whopping 95,000+ followers on Facebook and an additional 16,600+ followers on Instagram. The company has additional digital tools to explore, including paid media on Google, partnerships with social influencers, and email and SMS text messaging campaigns.
Conclusion
The company has been able to refine its product catalog, messaging, relations with suppliers, and outreach to new retailers over the past three decades, and this is now a well-oiled machine that operates smoothly every day, processing new sales, and keeping both B2B and DTC customers happy. and Pharmacies in Australia as well as a number of overseas countries including New Zealand, UK, Spain, Kenya and the USA. The overwhelming majority of their sales are generated through this wholesale channel
For a new buyer, this is certainly a business that would be easy to manage, and with its team of professionals managing daily operations, an investor can put a laser-sharp focus on the company’s clear scale opportunities.
The most significant would be an expansion into the U.S., where their products are likely to demonstrate quick and lasting appeal.
