Website Closers® presents an eCommerce Brand in the lucrative field of Samurai Gear and accessories. As a global distributor of these products, the company specializes in providing traditionally crafted, fully functional, and customized reproduction samurai armor, clothing, and accessories. Their extensive range of products caters to a diverse array of use cases and audiences, including display / collection buyers, martial arts training, LARPing, cosplay, historical reenactments, as well as for use in movies, TV shows, museums, restaurants, and interior design.
The company has worked with their supplier network to focus heavily on authenticity and quality craftsmanship and has thus been able to serve a wide spectrum of clients across various industries and applications, worldwide. This is proven by the fact that 70% of their sales come from past customers – an unbelievable KPI for any eCommerce storefront.
Their customizable reproductions of classic and historic Samurai Armor have given this brand a rapidly growing base of clients across various industries worldwide. Since Samurai armor is popular in Hollywood, their products have been used in movies and television shows. This has been excellent advertising for the company, but their fan base is so loyal that word-of-mouth testimonials within the world of Samurai armor devotees heavily influences sales.
With a high Average Order Value of $680, the company’s sales are not only strong, but they are mostly made up of past clients. In this highly specialized vertical, customers appreciate having a shop that meets all their needs for Samurai clothing and related items. They offer 100+ SKUs including masks, armor parts, helmets, and more. These products are all sold under the company’s brand name.
The company has tapped into a very profitable market with its specialized SKUs and has a minimal need to stock inventory since most of its products are custom-made-to-order and designed to the customer’s specifications. While 90% of their sales have been Direct to Consumer, a rising percentage, at least 10%, are to wholesalers and retailers eager to fulfill customer requests for Samurai Armor.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for a brand with online and offline sales channels operating profitably in a niche vertical with low competition and with the ability to scale quickly. We anticipate buyers will recognize that value for 3 important reasons:
- Increased Productivity. A buyer will take on a company that was recently able to double its production capacity after its main supplier completed construction on a new facility. Previously this company faced possible delays during peak sales times for their made-to-order models, but their manufacturer’s new 6,000-square-foot factory has automated machinery, and the supplier hired a new production manager and additional workers. Their production capabilities have surged, and this company is not only meeting orders faster but has started launching new products.
- A Diverse Catalog. As a niche business, this company has grown to dominate competitors as they continue to expand, and they are now the foremost global distributor specializing in traditionally crafted, fully functional, and customizable reproduction samurai armor and clothing. The company has become known for its extensive range of products and services that include martial arts training, live-action role-playing, cosplay costume art, and historical reenactments. With a high commitment to authenticity and craftsmanship, their products have been in movies, TV shows, museums, interior designs, and in the recent shows Shogun on Hulu and Age of Samurai–Battle for Japan on Netflix. This unparalleled portfolio has enabled the company to serve a diverse client base across the globe.
- Growth Opportunities: Since increasing its capacity to meet a higher number of orders, the company has been introducing new SKUs to its loyal customer base. That has included an expansion of Chinese and Korean-style armor, while the brand has started research on the introduction of new synthetic armor, which few competitors offer. The company also launched a print-on-demand T-shirt line, and new digital artwork that aligns with the mockups clients have bought in the past. Increasing its catalog is a certain method for scaling quickly, although the company can also expand its social media marketing campaigns to drive sales higher.
The Company
Launched in June 2001, the company has more than two decades of experience promoting its product portfolio revolving around samurai culture. Customization has become a key to their success; with costumes and clothing made to order by their suppliers. Their highly stylish SKUs can be custom fitted to meet the needs of each buyer. With additional accessories and services to offer, the company has found unique ways to set itself apart from traditional Japanese manufacturers.
With a highly competitive pricing strategy, the company has managed to stay a step ahead of the competition in this vertical and to develop a robust and dedicated fan base with products that bring forth their inner warrior. For a buyer, the sale of this business not only gives them products doing exceptionally well in this niche space but also a passionate community that cares about this pastime.
The company has exclusive distribution contracts with its suppliers, which prohibit these factories from selling its products to anyone else. 99% of their products are Dropshipped by the manufacturer to avoid expensive warehousing and inventory costs, which can eat up cash flow. Sales tend to remain steady throughout the year.
Operations and Marketing
The company’s daily operations are handled by a private services firm, so the current owner focuses on just 10% of the workload, including direct marketing and sales.
They maintain virtually no inventory except to stock a few small items for fast and easy shipping in the U.S. New inventory is ordered every three months.
Their customers have been the brand’s strongest marketing tool. As a tight-knit community interested in Samurai armor, these clients value word-of-mouth recommendations which has helped give this company a vibrant reputation among them. Many of their clients are men between the ages of 22 and 62 with the financial means to indulge in this pastime.
The company also has an SEO program to drive organic traffic to its website, and they are active on Facebook, with a massive 31,000+ followers, and an additional 7, 500+ followers on Instagram, which helps boost customer engagement. The brand consistently posts daily stories and weekly videos to connect with customers, while also promoting product sales. They also engage with multiple Facebook fan and community pages that their clients are visiting. This is bringing 17,000+ unique monthly visitors to the company’s website.
The buyer of this company gets plenty of significant attributes, including a leadership position in this niche vertical, recurring revenue, a fiercely loyal customer base making up 70% of their sales, fast production capacity, and an expanding catalog. With no serious inventory costs, the buyer can rely on the company’s made-to-order DropShipping for speedy deliveries.
And with low competition in this niche vertical, the brand is ideally poised for a major expansion.
