Website Closers® presents a rapidly rising eCommerce jewelry brand that has found great success in targeting a profitable sub-niche in the industry. They sell a variety of “stash necklaces”, which are built with discreet hollow compartments perfect for storing small amounts of whatever the customer may wish to have on hand. These necklaces face very little competition, putting the company at a distinct advantage in such a competitive market.
Market Insights
The jewelry industry has both massive demand and variety, encompassing everything from earrings and bracelets to rings and necklaces. Necklaces in particular have seen a sharp spike in popularity within the past several years, becoming the go-to accessory for many people’s wardrobes. As this company’s necklaces combine aesthetics and utility in their pieces, they offer a unique product that delights many customers looking for something to complement their outfits.
The growth of eCommerce has been a boon to many industries, and the jewelry sector is no exception, surging in sales as more consumers turn to the digital sphere for their purchases. One of the demographics that has been most responsible for this trend has been the brand’s primary audience of women in their twenties, as with the convenience and ease of access that online shopping provides, this group has become increasingly likely to turn to eCommerce for products that suit their budgets and preferences.
The power and influence that celebrities, pop culture, and social media stars also can’t be understated, with celebrities often setting trends with their fashion and jewelry choices. The company’s pieces have garnered attention in part because they have similarities to the necklaces worn by Lana Del Ray and the character Kathryn in the 1999 movie “Cruel Intentions”, giving them immense virality potential. On TikTok, the brand’s videos have achieved millions of views, with some customers posting videos proudly showing off their purchases.
Inventory and Manufacturing
The company has done an excellent job of riding the waves of consumer trends and interest, with all of their products being proprietary and being designed in-house with computer-aided programs. Their prototypes are then 3D printed and refined, and once the team is satisfied, the final designs are sent off to a prominent manufacturer.
This manufacturer not only produces samples, but they are also bound by an exclusivity agreement that keeps them from advertising or selling the brand’s products to other buyers. The products are then sold under the company’s brand on Amazon, Etsy, and their own branded website based on the Shopify platform.
They use a 100% stock model to handle their inventory. At the start of each month, the company maintains about 80% of inventory, which is then adjusted as necessary midway through the month. This equates to between $10,000 and $15,000 at cost.
They operate out of a 200-square-foot warehouse, from which they dispatch about 20 to 50 orders every week. The buyer could easily rely on a 3PL to reduce the need for personal storage and packing facility, but the current owner has found that, with the products’ small size, it’s an economical move to hire hourly help twice a week to handle shipping.
The brand sees consistent sales year-round, though, like with many eCommerce companies, they do see peaks around the holiday season between November and February.
Marketing
Their digital marketing efforts center heavily around organic traffic using TikTok, Instagram, Pinterest, and Google. This strategy has led to a fantastic ROAS for the business, while still improving sales across their various platforms. The company has found that Amazon PPC and Google campaigns are also beneficial to furthering their growth.
The company also incorporates SEO strategies through Pinterest, and by listing the products on high-ranking sales platforms. These efforts have caused them to be shown at the start of most Google searches, given them a rate of roughly 30,000 visitors every month to their site, and led to strong conversion rates. On top of this, they also have a click-through rate of about 3%, a ROAS that falls between 300 and 500 percent, and a cost per action as low as $6, along with an average of 200 new email and SMS subscribers every month.
Their average customer is a woman between the ages of 18 and 29 with an interest in niche aesthetics such as Coquette, Dollette, and Art Deco. They are also likely to be fans of Lana del Rey and movies like Cruel Intentions.
Operations
The current owner has a light workload of about 8 hours per week, which is used primarily to ship necklaces and reply to customer emails. Along with the owner, the company employs one employee, who is also willing to stay post-acquisition. They handle all influencer and organic marketing, with their tasks being focused on managing and posting daily on Instagram, Pinterest, and TikTok and identifying trends in the niche. They also cooperate with creators in the space to create new social growth strategies.
Conclusion
The jewelry industry is predicted to continue its upward climb, which this acquisition will likely be able to use to their advantage. The steady advance of technology means that there are even more possibilities for new, innovative designs and materials in jewelry pieces and more room for customers to express themselves. There has been a growing trend towards customization and personalization options, as consumers enjoy being able to tailor their purchases to reflect their tastes and individuality. This company is in a great position to make use of these trends, and the strength of their following is incredibly promising for their future.
