Website Closers® presents a Super High Growth Women’s Apparel and Cosmetics Brand that operates on multiple websites and channels. They have a strong and growing Subscription Business for their DTC product lines. With popular SKUs for customers who are plus size, this eCommerce Company has grown quickly with its unique business model that allows customers to opt into a VIP subscription model. In just the past few years, management has impressively grown its monthly subscription net profits from $41,000 to $398,000+.
With minimal overhead from this business model and an experienced team in place, this company is a golden opportunity for a buyer who wants to enjoy its recurring revenue while finding ways to scale. There are some appealing growth options, including selling their SKUs on additional marketplaces, bringing additional products to their subscription model, and fully optimizing their website for SEO.
The company has enjoyed consistent success by creating evergreen products within a specialized niche in the Women’s Beauty and Apparel markets. The company has successfully engaged with women who are plus size and feel neglected by other apparel companies. This has been a highly profitable niche for the company, and the loyalty of their customer base has served their subscription model exceptionally well. This is an enormously profitable niche space among customers who appreciate the extra attention given to their specialized clothing needs.
This is certainly a fast-growing vertical. The plus size industry is now valued at $22.9 billion and is projected to grow by 5.6% through 2026. It’s estimated that 67% of American women wear a size 14 or larger, and sales in this vertical are now largely done through eCommerce, with online sales accounting for 37.8% of the total plus size women’s clothing sales in 2021.
A customer base that often feels undervalued by traditional women’s apparel manufacturers, they are demanding garments that are fashionable, modern, and a perfect fit for them. The ongoing trend toward body positivity has made plus size women a strong market to appeal to, and brands that cater to them are finding very high profits.
For many of these customers, the comfort and convenience of finding what they’re looking for through online shops has made a big difference in their shopping habits. A closer look at how this company built its audience will demonstrate why eCommerce has become the preferred shopping method for this niche space.
Their Niche Market
Launched nearly 5 years ago, the company developed a portfolio of DTC products sold on its Shopify website and on Checkout Champ, which include bras, indestructible tights, and cosmetics. While their products are not custom, they are marketed under this company’s brand name.
With an Average Order Value of $30-$50, their products perform well year-round, with a consistent peak in sales around the Black Friday shopping season. Since the company is Dropshipping directly from their manufacturers for clothing customized to the needs of each individual buyer, they don’t maintain any inventory. Their SKUs are sourced from various manufacturers.
The company has strived to avoid creating products that are trendy or reflect fads, and instead focus on evergreen models that enjoy high sales volume. This has also enabled the company to excel at its Subscription Model, where its customers pay a certain amount each month to enjoy access to free shipping and access to a VIP website where they can select free products.
This has been a highly profitable model for them. There are no direct competitors who use a subscription model strategy on similar products, and their subscription model has enabled their customer Lifetime Value to continue increasing.
Their Marketing Plan
To continue funneling customers to their VIP subscription plan, the company has relied on a diverse number of digital marketing tools. That includes PPC ad campaigns on Facebook and Instagram, SMS texting, and email marketing to a database containing a tremendous 3 million subscribers. The company has tested $100 million worth of paid ads to create a streamlined process to improve its ad performance over time.
To boost organic traffic to their website, the company has the site optimized for SEO and uses social media marketing to engage further with their target audience. Both tools are working effectively, delivering 170,000+ unique monthly sessions to their website.
There are opportunities to employ additional digital marketing tools in the future to boost sales. The company’s social media sites could use influencers and affiliates to help promote their products, and video marketing on sites such as YouTube and TikTok would help expand their customer base as well.
Additionally, the company could re-optimize its SEO program to ensure it is using the most up-to-date keywords in search engines and add an educational blog onto its website to attract more customers.
How they Operate
A buyer will get the advantage of owning a highly turnkey operation. The current ownership spends no more than 20 hours per week running it, often focusing on making strategic decisions and overseeing the brand’s relationships with its suppliers and marketing consultants.
Daily operations are managed by full-time employees who serve as vice president of operations, operations coordinator, and customer service manager, as well as 10 customer service email agents, three product research contractors, and four content creators and editors.
They manage up to 700 email customer service inquiries daily, and 100+ customer inquiries handled by phone.
The company has scored great success by carefully nurturing relationships with customers in a profitable niche space, the Plus Size vertical, and by using a subscription model to keep those customers attached to them long-term.
Women’s apparel remains an enormously lucrative field, and the company has shown a great deal of creativity in capturing the loyalty of a key segment within it. It’s the perfect fit for an ambitious buyer looking for a profitable business to scale quickly.
