Website Closers® presents an eCommerce Brand focused on Compression Socks for the Healthcare industry. These products are immensely popular with nurses and millions of other workers whose jobs require them to be on their feet for long periods of time.
The market for these products is increasing globally as millions more consumers learn about the benefits of wearing compression socks to help them cope with jobs that require them to stand for long periods of time, which adds pressure to their legs and feet through the years. The products are also ideal for hospitals that are dealing with a higher number of patients with cardiovascular illnesses and leg injuries, patients who benefit the most from the use of compression socks. This company has already become a leader in this niche vertical, having created their own line of specialized compression socks based on their own in-house designs, all manufactured specifically for them, and all sold under their brand name.
Sales have been strong in the healthcare vertical, and now the company has recently begun the process of diversifying their product listings and introducing additional quality products within their niche space.
This is an exceptionally lucrative industry. In the U.S. alone, the healthcare industry is massive, with healthcare spending accounting for more than nearly 20% of the US GDP. The industry is continuing to grow as the population increases. This situation is generating a wide variety of new companies and institutions operating under the healthcare industry umbrella, including online businesses that specialize in providing products related to meeting people’s healthcare needs. The U.S. national healthcare expenditure was a tremendous $4.1 trillion in 2020, or $12,530 per person, and is projected to reach $6.2 trillion by 2028. This represents a lot of revenue for anyone operating within this field.
Increased awareness of the medical and health benefits of wearing compression socks has only gotten stronger, with the global compression socks industry now earning $630 million and is projected to surpass $1 billion in revenue by 2031. The market for this industry is increasingly large, encompassing DTC sales to nurses, doctors, athletes, and literally anyone whose job requires them to stand for a long time, and B2B sales to pharmacies, healthcare companies, uniform shops, and medical supply distributors, among many others.
Launched in July 2020, the company’s socks are developed for them and sold with their logo on both the socks and their packaging. Their own brands have been modified and improved so they are clearly distinguishable from what competitors are offering. The company designed these socks from scratch, working with a graphic designer to create all patterns.
They now market two different collections of compression socks, and there are various colors and sizes for both. At an Average Order Value of $43, sales are brisk throughout the year with minimal seasonality to sales. Their products are used by nurses around the globe, and the company has benefitted from a large number of 5 Star reviews from satisfied customers who are all too eager to share how effectively these socks have helped them get pain relief and comfort. Customer feedback continues to impact the development of new products.
Their customer demographics are strong, with their products appealing mainly to women who work as nurses or in the field of healthcare, aged 21 to older, with the most concentrated range from ages 30-40. Since customers tend to wear out socks over time and reorder new ones, the company’s Repeat Customer Rate has shot up to 13% and rising.
Because of that, the company is strongly considering a monthly subscription model since most people own multiple pairs of these socks, to begin with. This is a solid scale opportunity for them, and it is one the company is facilitating by researching new designs and patterns that would be perfect for upsells and cross-sells.
They are now enjoying 24% profit margins on these sales, while their return rate is a very low 3%, a very impressive number and usually a difficult one to achieve in the apparel market.
The brand’s digital marketing program has been a successful mix of paid and organic traffic. They run PPC ads on Facebook and Google while using video marketing on sites such as TikTok and YouTube to expand their organic reach to customers. Their videos use different types of content and approaches to educate viewers about how their socks work and what their health benefits are.
This has been a smart approach as their organic traffic is growing considerably and the company now averages 120,000+ uniquely monthly visitors to their Shopify website.
As their customer base continues to grow, so does their email database, which now has 100,000+ subscribers. Their social media marketing includes regular posts on Instagram, where they have 23,000+ followers, and on Facebook (21,000+ followers).
There are additional digital marketing approaches to tap into, including the use of influencer and affiliate marketing to drive sales higher.
This business also has a major scale opportunity by expanding their sales channels and listing their SKUs on sites such as Amazon, eBay, and Walmart, introducing their products to the millions of customers using those platforms daily. Since it’s clear that the market for compression socks is an increasingly large one that continues expanding, there are major growth opportunities open to this company, and they are facilitating that growth by continuing to expand their product line.
Right now, 100% of the company’s sales come from products they stock in their 3PL warehouse, and they are averaging an impressive 260 being shipped daily. To keep up with that demand, the company stocks $150,000+ worth of inventory and places new orders from their suppliers bi-weekly. They have excellent relationships with their suppliers and have not confronted any challenges when it comes to getting orders fulfilled.
This company is well-automated and requires as little as 15 hours of the owner’s time per week to operate. The current owner focuses on tasks that include admin work, launching new PPC ads, negotiating with suppliers, managing inventory, and generating ideas for scaling.
The owner is ably assisted by five contractors that include two virtual assistants responsible for customer service, two members of the marketing team, and a marketer who handles social media. It’s a smooth operation for a new buyer to take over.
