Website Closers® presents a 7 Year seasoned CPG Company that has had tremendous success selling its trademarked brand of Men’s Grooming Products, which has given them a wide audience of consumers, both men and women. For Men, these are products that a growing number need to ensure maintain a groomed appearance at all times. And for Women, these products make excellent Gifts for the men in their life.
That fast-growing customer base has been highly receptive to the products they offer, which at present are primarily offered on Amazon.com. This marketplace gives them access to hundreds of millions of buyers and revenue growth of 130%. With seven years of experience building up a loyal audience and effectively using Amazon and several other platforms to drive sales, this professionally managed and high-performing business is enjoying steady growth (30%+ net margins) and impressive scale opportunities. In fact, the business is now ideally set up for an easy expansion into other men’s health and grooming categories.
The Men’s Grooming industry is enjoying phenomenal growth today, projected to be worth $90 billion globally by 2025. The heightened demand for grooming products owes much to increased awareness among men about the important role hair care contributes to their appearance, to the popularity of these products among Millennials and Gen X consumers, and the increased popularity of men’s grooming products among women consumers, who are buying them as gifts for the men in their lives. This is a popular niche field with huge growth potential, which is why so many manufacturers are eagerly looking for new and more sophisticated products to introduce to the market.
Whomever acquires this business will quickly emerge as a leader in this lucrative vertical, since the company has effectively laid the groundwork for a very profitable future. Let’s take a closer look at how they did that.
The company markets products in high demand. Established in 2016, the company markets their private label combs, brushes, scissors, oils, balms, and kits to provide men with the ultimate grooming experience. While they’ve enjoyed considerable success on Amazon, which still represents the bulk of their sales, they have diversified to include a Shopify website and they also now sell on Walmart.
Research plays a key role in the development of their products. The company studies what their competitors and similar brands are marketing, then performs keyword research on those products to find new keyword opportunities which lead to new products to launch. All of their 43 active SKUs have proven to be strong sellers, and no single product dominates sales. In fact, their top two bestselling products, a folding wooden comb and beard oil, represent just 20% and 12% of sales, respectively.
The company has added 10 new products in 2022 so far. With a $13 Average Order Value, sales remain steady throughout the year with no seasonal factors, although sales do peak around the holidays. Their typical customer isn’t necessarily a man, although they make up 60% of the customer base. The rest is women between the ages of 25 and 54, a huge group, who enjoy buying this company’s products as gifts.
This is a strong operation, efficiently run. As a primarily Amazon eCommerce Brand, this company has a 4.9-star rating and has been awarded numerous Amazon Choice badges in the Beauty and Personal Care categories. Their products are sourced from two reliable manufacturers, offered to them through wholesale. All products are sold under their brand name.
Amazon gives them the advantage of fast shipping through Fulfillment By Amazon (FBA) from the manufacturer directly to Amazon. The system operates so smoothly that the current owner spends just 10 hours per week running this company, focusing mainly on responding to customer inquiries and reviews, checking PPC ads and inventory, and reordering or shipping products. The owner has no employees, and Amazon handles majority of the issues relating to customer service and shipping.
The company has used PPC Ads on Amazon to generate sales, and they have successfully taken advantage of Amazon’s Subscribe & Save program for their consumable products most notably the oils and balms. This has become a reliable source for recurring revenue, with 700+ active subscribers.
Additional marketing tools include a vibrant social media platform with 3,600+ Instagram followers and 2,100+ Facebook followers, an SEO program that includes a blog on their website, and 6,000+ subscribers in their email database for new product launches, promotions and upsells. The company is now sampling 10-15 new products as additions to their brand catalog.
This is an opportunity for the right buyer to enjoy the many financial rewards this company provides, considering the strong platform already created to drive sales higher. Simply expanding into new products related to men’s health and grooming, which would allow for upsells to their existing customer base and clearly help expand their audience would send profits skyrocketing.
