Website Closers® presents a growing DTC and B2B eCommerce Brand as well as the Manufacturing Arm of the business, all sold as one Enterprise-Level Company. This digital company not only sells its products to retailers and direct to consumers, but it also manufactures all of its own products as well, thus protecting the supply chain and maximizing margin. Based in India, this business has become a leading producer of mobile phone batteries, chargers, earphones, and other consumer electronic (CE) devices. That puts this company within the world’s fast-growing industry, as the manufacturing and design of electronics systems continues to help transform lives, businesses and economies across the globe. It would be difficult to overstate just how rapidly this industry is growing.
This manufacturer, wholesaler and retailer has sold a tremendous 9 million units in the past 4 years, and sales are projected to rise quickly since the company is now in the process of introducing multiple new products – at the request of its retail customers, which represent an 80% Repeat Order Rate. The company is in a unique position in another crucial way. In addition to manufacturing their own brand of popular electronics, sales were shifted to Amazon India, and that platform has enabled this brand to cast a much wider net for its customer base, taking on a fast-growing D2C market. Sales on their Amazon storefront are strong and increasing at a solid pace.
That gives this business a striking advantage in a field projected to experience a 25% annual growth rate – but one without a clear global leader.
Without question, this brand has an opportunity to establish itself among the top leaders worldwide within the field of lifestyle electronics accessories. There is one thing this company feels it lacks, which we’ll review here, and that presents an astute buyer with a terrific scale opportunity.
The company was launched four years ago while recognizing there was huge consumer demand for these electronics and related accessories, and they had an opportunity to take advantage of the abundant supply of labor in India to staff the plant.
Their facility is now capable of producing a wide array of popular products, including mobile phone batteries, chargers, data cables, power banks and Bluetooth neckband. Their success establishing this plant came at a crucial time. For the past two years, the government of India has been focusing on not just promoting the manufacturing of electronics in India, but also positioning the country to become a top export hub and bringing in key supply chain partners.
The government effectively set the goal of making India’s electronics part of the global ecosystem for these products. Those efforts give this company a boost in establishing business ties with countries across the globe looking for alternatives to sourcing from China.
The company has already used its expert sales team to attract 38 retail clients, which gives this business a thriving wholesale channel. Their mobile battery has become their top seller, making up 53% of sales, followed by the Mobile Charger, which makes up an additional 22%.
The company has a high average order value of $2,412, with their top selling seasons in India are between April and June and then October and November.
So far, the bulk of their company’s sales have been offline, and they enjoy a solid repeat purchase rate from established retail partners. In fact, up to 80% of their orders are now from repeat customers.
These customers have appreciated the high quality of their products and have even asked the company to diversify into new categories such as cables and audio. Having established themselves for chargers, the company is now working to do the same in the audio category.
In January 2021, the company took a new step and began focusing on Amazon India. This decision paid off very quickly. The company has seen great traction in its kids’ headphones, having become the largest seller by value. The company is focusing on new models that are now being tested and expected to go into commercial production in the fall.
The brand also introduced a magnetic data cable which took just a few months to become among the top 50 data cables on Amazon, and their goal is now to get that in the Top 5.
While the company has enjoyed rapid success both offline and now from eCommerce, they recognize one area that needs improvement, which is marketing. The company has a sales team but their efforts at digital marketing have been limited. The brand does not have an email marketing or social media marketing campaign, or an SEO program. For their Amazon sales, they rely on the advertising tools that Amazon offers.
That is a massive scale opportunity for a buyer, particularly one who understands digital marketing or has a solid marketing team in place. Filling that gap will allow an already tremendously successful manufacturing and eCommerce business soar to new heights. Simply introducing digital marketing techniques to this operation would have a phenomenal short-term impact on sales.
The company could use SEO effectively to include keywords in their product descriptions and launch a regular social media marketing campaign to boost organic traffic to the website. That could include an influencer marketing campaign on the social media accounts.
Marketing isn’t the only scale option, though. The company could continue to expand its SKUs, adding new products.
Another excellent option would be to explore opportunities in the field of mobile phone manufacturing as a time when sales of smartphones keep soaring.
The company could expand its sales platforms, offering D2C sales on its own website and selling its SKUs on Amazon’s platforms across Europe, Canada and the United States, while continuing to scale its presence on Amazon India.
There is a very strong, experienced workforce in place that includes a dedicated sales team for both online and offline sales, an admin team at the factory that coordinates purchasing and manufacturing, and their workers at the manufacturing plant.
Having such a sky-high repeat customer rate of 80% is a clear demonstration of how well produced their products are, and this is a terrific opportunity for a buyer to have a thriving manufacturing plant of quality electronics combined with a strong eCommerce platform.
As the government of India pushes for a strong increase in electronics exports, this brand is in just the right position to use some simple marketing techniques and new product launches to send sales to dramatic new heights. It’s a golden opportunity for a buyer to ride that wave.
This Digital Company Represented by:
Technology & Internet M&A
Listing ID: WC2428