Website Closers® presents a fast growth eCommerce Brand that quickly developed a loyal customer base for its Mini Underwater Breathing Devices that are popular with scuba divers and water sports enthusiasts. With a full line of offerings that are manufactured directly for them and fully proprietary, this company has been able to focus on the uniqueness of its products, which are battery-powered and contain self-refill devices. This has made their SKUs far more appealing than what competitors in the Scuba Diving vertical offer.
Even more important is the fact that their devices are fully certified. None of their rivals are able to offer similar certified products as the ones this brand has designed, giving them a significant advantage in this field. And it shows – the company has a massive following in social media, especially Instagram where they have a highly engaged audience of just under 1 million followers, who consistently post images of them using the devices all across the globe.
This is a highly lucrative vertical thanks to the growing appeal of scuba diving and deep-sea fishing in popular tourist vacation spots. The Scuba Diving Equipment Market was valued at $2.1 billion in 2023 and is projected to grow by 4% through 2032, thanks to the enormous popularity of coastal tourism. The World Economic Forum reports that coastal and marine tourism now accounts for 50% of global tourism, as scuba diving becomes an immensely popular leisure activity.
This company is ideally positioned to ride that wave to significantly greater heights. As the business becomes better known, thanks to a creative social media marketing campaign that boosts organic traffic, the company has seen its profits rise consistently for many years, with 2024 fiscal year sales increasing strongly compared to 2023. the company’s $469 Average Order Value gives them a tremendous margin, and the company has been able to enjoy this robust success without maintaining a marketing budget. The result is a higher than average contribution margin across the array.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly. Opportunities include expanding digital marketing to include an SEO program on the website and a blog, launching email and affiliate marketing campaigns, and expanding their international distribution.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. No Marketing Budget. The company has not invested any significant funding into its advertising campaigns — but hasn’t needed to. The business has demonstrated a skill at attracting new customers through its social media platforms, which are giving its website plenty of solid organic traffic. This brand’s social postings have delivered just under 1 million followers on their Instagram account, 80,000 on Facebook, and 15,700 on their YouTube channel. This is a solid advantage for them since direct competitors have not invested in similarly vibrant social media campaigns. This organic traffic campaign is paying off in the way it was supposed to, giving the company 316,000 unique monthly visitors to its website.
2. International Expansion. The business is now on the cusp of making a stronger international expansion. Setting up for global distribution is expected to significantly reduce the brand’s shipping costs by up to 75% since all orders currently are shipped from Australia. The company maintains a database of interested local suppliers and distributors, and this is a business that can be operated anywhere across the globe, including moving the current shipping base to a more centralized region. The company could also transition from stocking its inventory to a DropShipping model.
3. Diverse Customer Base. The diving snorkel market is projected to enjoy substantial growth internationally as water sports enthusiasts continue to make marine tourism a thriving field. This company’s customer base demonstrates how diverse the audience is for this outdoor and sporting activity. They attract sales from fans of all manner of water sports such as boat owners, divers, and vacation travelers. Their buyers are evenly split between men and women, and customers run from ages 18 and up. Many of these customers come back to purchase new accessories so their Lifetime Value is much higher at $710.
The Company
This business’ sales are currently generated solely by DTC through its branded website, but there are opportunities for the new owner to diversify their sales channels to include leading platforms such as Amazon. The company could also introduce a retail component, either through B2B marketing to retailers that sell products related to marine tourism, or by opening storefronts in strategic locations. There is enormous potential for this brand to find opportunities by marketing to the pool industry, shipping and yachts, boat rentals, and even to the Coast Guard and the Navy.
Because the company has enjoyed such solid growth in the past year, the new owner is in a great position to build on that success in multiple ways. This is a turnkey operation, with the two current owners working a total of 25 hours a week, without the need for employees to handle daily tasks. A new owner does not need to learn any special skills to operate this business outside of having basic skills such as online marketing and fulfillment, and the new owner could also hire contractors or virtual assistants to handle some daily assignments.
The hiring of a sales team would also be a strong tool for future growth.
With the marine tourism market projected to enjoy substantial international growth, this business with its proprietary SKUs is already demonstrating enormous appeal to the customers who are making this vertical so profitable. The new owner will inherit a smart social media marketing campaign that continues driving sales, solid recurring revenue, and terrific growth potential.
