Website Closers® presents an eCommerce brand that has rooted themselves in the lucrative Hair Care & Beauty Products market through their popular, high- quality Halo Hair Extensions. The success of their products has been backed by their customer base, leading to significant profits for the company, as well as a position as a top provider within their versatile and in-demand niche.
The company is made especially unique by the fact that they are the first brand to sell their particular hair extensions, as they use a proprietary design that ensures an exclusive quality to their products. Since their launch roughly 6.5 years ago, they have made it a goal to consistently innovate and ideate new products for the hair extensions industry; they have held themselves to that goal with each product that they release. Their products have been so successful that several big name hair extension brands, such as Luxy and Zala, have attempted to replicate their ideas, showing just how desirable their concepts are on the market.
Like many brands within the Hair Care market, the company has utilized social media and the virality that it can offer to advertise their products to their target audience. Social media provides the benefit of letting them showcase their extensions through a visual format, which gives potential customers the security of knowing exactly how their products look, and an idea of how the extensions might look in their own hair type. This strategy, on top of doing a great job of advertising the brand, has given them nearly 20,000 followers on Facebook, and over 76,000 on Instagram, with the numbers of both rising with each passing day.
The company exists on a global scale, with sales in the US, Canada, the UK, Australia, and New Zealand. They source from two main suppliers that have been working with them for nearly their entire lifetime and have proven themselves to be reliable sources of not just products, but customer service as well. Their Average Order Value of $256 has given them strong enough profits to expand their product roster to 107 SKUs, 102 of which are variations on their core hair extension product.
They have made careful decisions and strategized to make their brand as popular as it has become, but some of their growth can also be attributed to the fact that the Hair Extensions Industry is rising at an outstanding rate. Hair extensions offer a convenient way for customers to style their hair at home, saving them money that would be spent on salons and professional hairstylists.
The industry is now worth $364 million in the US alone and is predicted to reach $10 billion in 2023 globally. The hair extension industry now sits in the enviable position of being the fastest-growing segment of the overall Hair Care & Beauty Industry today.
The vast size of the market leaves the potential for immense future scale, which the company has proven that they’re more than capable of taking advantage of. By looking into the brand’s history, it’s easy to see just how they’ve been able to thrive within their chosen niche.
They market their own branded products.
The company carved a space out for themselves since their launch through their “halo” hair extensions, which are a category of extensions that provide a simple and one-step method for customers interested in having longer and fuller hair within a short period of time.
These halos are easy for even first-time users to apply, as they can attach them for everyday wear within the span of a few minutes. They enhance the user’s appearance without damaging their natural hair, making them popular among a broad range of customers interested in a quick and easy solution for a lusher hairdo.
The products are made through unique design specifications sent by the company to their suppliers, which lets the company sell exclusively their own SKUs to their customers.
While they enjoy consistent sales year-round, their profits spike between the months of July and December. The nature of their hair extensions means that their customers aren’t likely to stop at just one of their products, with the average customer buying several halo extensions to swap between as necessary. This has given them a Repeat Customer Rate of 25%, which has been steadily increasing year after year.
Digital marketing helps drive sales.
Their marketing campaign combines paid and organic traffic to great results. Their PPC ads are responsible for 44% of their profits, while their SEO campaign is behind 33%. Their return on investment is now 5.5x. However, their SEO strategies have shown themselves to be particularly effective, and include a popular blog on their Shopify website. The content of this blog is enjoyed by more than a few fans, leading to over 55,000 monthly visitors, and paid subscribers that are behind $5,500 in revenue each month. Their overall SEO program, meanwhile, includes the use of keywords and outbound link building and has been responsible for over 100,000 unique monthly visitors.
They have also made effective use of the over 250,000 contacts in their email database, with their email marketing campaign giving them a strong open rate and a high return. The company also makes sure to avoid neglecting their social media accounts, using strategies such as collaborations with similar brands and industry influencers to reach entirely new audience bases.
The company is turnkey and doesn’t require long hours.
The current owner spends a modest 10 hours every week on the business, though the buyer could whittle this time down further with the help of their capable team, who help handle daily operations. This team includes a social media manager in charge of social, content and PPC ads, a manager in charge of emails, graphic design and the company blog, a supply chain manager and five customer service representatives.
The company maintains about $250,000 to $300,000 in inventory through their three 3PL warehouses, which helps them keep up with orders even during their peak season. They typically hold about three months’ worth of stock, which has proven to be very useful preparation before their sales are at their highest.
Additional inventory is ordered every two months.
The fantastic feedback from their customers has lent itself well to the company’s growth, and they are more than ready to utilize the scale opportunities that are available to them. The future of the brand depends largely on what the buyer wishes to do with it, as they could either keep operations as is, or investigate scaling by adding new SKUs, such as products in new hair categories. They could also expand their listings into other, well-known eCommerce websites like Amazon, Walmart, and eBay.
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