Website Closers® presents a blossoming collection of eCommerce stores in the women’s beauty and apparel sectors that has exceeded $24 Million in Revenue and projections to far outpace this.
Nearly all products cater to enduring niches that females need and that have proven their lasting appeal. Management steers the ship with a forward-thinking approach, avoiding fads or temporary trends.
The Market & Product Range
The women’s beauty and undergarment apparel markets have consistently grown over time. From shapewear to hosiery, these undergarments significantly impact a woman’s appearance, bolsters confidence levels. Within this vertical, comfort, style, and perfect fit carry equal weight. In the beauty realm, the diverse array of products mirrors an industry shift towards natural and organic options, driven by consumer awareness of the impact on both their bodies and the environment.
The leadership of this enterprise keeps a keen eye on these markets, recognizing the rise of more direct-to-consumer companies catering to these immensely lucrative niches in recent times. For instance, Kylie Cosmetics, spearheaded by social media influencer Kylie Jenner, launched in late 2015 and has since soared to a billion-dollar valuation.
Management has adeptly capitalized on market shifts, notably emphasizing plus-size offerings, a segment that has consistently surged in the US for over two decades.
Their strategy involves curating a collection of DTC products on their websites. Each of their portfolio’s seven leading apparel and cosmetics brands operates on a “One-Product Store” model.
The business is currently trending at around $30,000 to $40,000 daily in front-end revenue, with a 60% front-end subscription conversion rate. Central to the approach is this subscription-based business model, wherein customers pay a monthly fee of around $30, entitling them to perks like free shipping and VIP access to a webpage offering a wide array of complimentary products. This arm achieves net margins of 70% and delivers results even if the front end runs at break-even since the model is predicated on the profitability of VIP subscriptions. The stable ROAS and ACOS, as well as the bottom-line growth, demonstrate its effectiveness.
Continuously exploring profitable SKUs to integrate into this program has resulted in remarkable expansion and 70% net margins. Revenue from this arm of the company has increased from $500,000 monthly to $1.5 million in the past year.
Moreover, management has developed and refined a weekly process over the past four years. This process focuses on testing products and establishing new stores, all geared towards eventual inclusion in the subscription model.
Significant indicators and metrics include measuring the return on ad spend, tracking monthly recurring revenue generated from subscribers, maintaining high retention rates among subscribers, achieving substantial gross profits upfront, and boasting an impressive percentage of new subscribers opting into the service.
All products are sourced from an Asian-based private supplier, with whom the seller has fostered a solid and dependable relationship. This supplier holds the capacity to procure items from various manufacturers.
The business operates with minimal overhead costs and employs a DropShipping model, eliminating inventory risks and fulfillment obligations. Furthermore, the company maintains a consistent and healthy cash flow.
Marketing & Operations
The digital marketing approach is straightforward yet incredibly impactful. Paid Facebook and Instagram ads drive the majority of website traffic and are managed in-house. The strategic funnel optimization is geared toward maximizing customer value by guiding them toward the VIP subscription. This method allows the company to break even or absorb a slight loss on paid ads while maintaining substantial profitability.
Beyond the methods above, the business taps into additional sales through email and SMS marketing efforts that a leading agency handles, targeting a colossal database of over 3 million contacts. A consistent, standardized process is used for testing and optimizing ads and tremendous potential exists in boosting the budget to maximize customer LTV and profitability.
Sales show little seasonal fluctuation, with products purchased consistently throughout the year. While the typical customer profile slightly varies across brands, the most prevalent demographic tends to be women between 45 and 54.
The two owners collectively dedicate around 20 hours per week to the business. Their focus primarily revolves around strategic decision-making, such as determining which stores should join the subscription service, adjusting ad campaigns for scalability or reduction, and enhancing both the Average Order Value and subscription sign-up rates. Additionally, they steer the process of weekly product testing and maintain crucial relationships with key players like the supplier and the subscription consulting agency.
A robust team holds various roles within the company and is motivated to remain with a buyer post-acquisition.
Outsourcing critical aspects like managing the subscription process, handling email marketing initiatives, order fulfillment, and the creation of user-generated content enables the team to focus on their strengths and boost the bottom line.
Prospective buyers have the opportunity to acquire a multifaceted company with numerous brands in its portfolio, all demonstrating excellent growth. Additionally, they are likely to enjoy a vast new revenue stream since, after seeing initial success with one brand on Amazon, management is in the process of bringing the others to the world’s most prominent marketplace. Most of the brands are IP protected, with three additional trademarks pending, which will be leveraged to sell on Amazon and thwart competition across all channels.
